Omron 2002 Annual Report Download - page 13

ECB
Omron Corporation 11
The Electronic Components Company
(ECB) posted net sales of ¥128.2 billion,
a year-on-year decrease of 1.0 percent,
due to the global impact of the terrorist
attacks during the economic slowdown
in the United States.
Domestic sales of equipment for
consumer and commerce (C&C)
components such as relays and
switches declined sharply because of a
drop in capital investment, which
reflected rapidly deteriorating
conditions in IT-related industries such
as semiconductors and electronic
components. The introduction of new
products such as an LED back light for
mobile terminals was unable to revive
sales. Sales to the office automation
industry also showed a steep decline
due to factors such as accelerating
overseas production by customers and
the trend toward digitalization.
Outside Japan, in North America,
sales to the manufacturing, electrical
appliance and communications
industries were down substantially. In
Europe, market conditions were
severe, especially for communication
devices. In Asia, the ripple effects of
the U.S. economic downturn resulted
in a continuation of challenging market
conditions, with sales to electrical
Electronic Components Company
Made using high-
precision processing, the
XF2N FPC connector
has an exceptionally low
profile (height: 0.9mm)
and a narrow pitch of
0.3mm. It is used in IT
mobile devices and AV
equipment.
The G6M is a super-slim
C&C relay that can be
precisely mounted in
industrial controllers.
It is the first in the
world to utilize fine
mechanical technology.
This laser radar sensor
for automobiles
measures the speed and
distance of the vehicle
ahead, which are
essential data for
adaptive cruise control
(ACC). Detection
sensitivity is extremely
high, with significantly
improved detection
capability for dirty
vehicles or during
inclement weather.
0
120
150
90
60
30
2001 2002
(Billions of Yen)
appliance manufacturers particularly
impacted. In China, sales were
comparatively healthy, centered on
electrical appliances. However, price
pressures due to competition from
local manufacturers and lower sales in
the communications sector led to an
overall decrease in sales.
In the automotive electronic
component sector, a difficult
environment that included industry
restructuring, coupled with concerns
about a downturn in automobile sales
following the September terrorist
attacks, resulted in challenging market
conditions. However, the decline in
sales was less than anticipated due to
the success of zero-interest-rate
financing and other factors.
ECB plans to grow its overseas
business by expanding its overseas
sales network and will also expand
production at the new factory in
Shenzen, China. Other activities will
include strengthening business
portfolio management, increasing
investment of management resources
in growth fields and developing new
products by utilizing its own strengths
while also considering alliances with
other companies.
Net Sales
The B-MLA, an LED
back light developed
with a unique design
theory and MLA
technology for high
efficiency and
brightness, is
contributing
to new advances in
cellular phones.