Omron 2001 Annual Report Download - page 4

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2 Omron Corporation
To Our Shareholders
Consolidated net sales increased 7.0 percent year-on-year to ¥594.3 billion.
Profits were affected by negative factors including temporary expenses associated
with the consolidation of offices, asset impairment costs resulting from the weak
domestic stock market, and exchange rate changes. Despite these factors, the
increase in net sales and a lower cost-of-sales margin led to a 90.3 percent increase
in consolidated income before income taxes and minority interests to ¥40.0 billion
and a 92.9 percent gain in net income to ¥22.3 billion, both up significantly over the
previous fiscal year. Return on equity improved from 3.5 percent to 6.7 percent.
This increase in earnings was driven by several factors. First, we realized the
benefits from our shift to a more customer-oriented approach by emphasizing the
solutions-providing business, particularly in the Industrial Automation Company.
Additional factors included a turnaround in the domestic economy led by IT-related
investment; a continuation of the strong economic climate overseas, particularly in
the United States; and increased sales for the Industrial Automation Company and
the Electronic Components Company. Moreover, the internal company system
introduced in April 1999 has resulted in even greater enthusiasm for achieving
performance objectives, because it spurs each internal company to reach its profit
and cash flow targets and engenders a stronger sense of competition among the
companies.
YOSHIO TATEISI
Representative Director and
Chief Executive Officer
PERFORMANCE:
SIGNIFICANT GAIN IN PROFITS
A core objective for Omron in the year ended March 31, 2001, the first year of our Eighth Medium-Term Management
Plan, was accelerating the transformation of the Company. Accordingly, we worked toward market expansion and
stronger competitiveness to establish a platform for sustained earnings growth. Under the internal company system
introduced in April 1999, each internal company worked to improve its performance through measures such as
strengthening business development in overseas markets, reinforcing business tie-ups with other companies, and
boosting productivity both in and outside Japan. In addition, we invested in new and expanding business fields to
establish the foundation for Omron’s future growth. On the strength of these measures and a strong global economy
that continued through the first half of the period, we achieved record net income in the past fiscal year.