Omron 2003 Annual Report Download - page 15

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LED Backlight
Achieves a high level of brightness
with low energy consumption
DR-LED
Omron’s DR-LED more than
doubles the level of brightness.
Optical Communications
Devices
Optical communications devices
support next-generation optical
networks, particularly access home
network fields. (Photo: optical
switches)
➤ Business Overview
The Electronic Components Company (ECB) posted net sales of ¥138.8 billion, a year-on-year increase of 5.3 percent.
While consumer spending and capital investment declined due to the global deflationary economy, the shift of customers
overseas and the emergence of Chinese manufacturers exposed ECB to intensifying competition and price pressure.
In Japan, sales growth was strong for backlights for cellular phones and integrated circuit (IC) coin systems for the
amusement industry, both introduced in the previous fiscal year. In the consumer and commerce components business,
although sales of relays for telecommunications equipment were weak, exports of relays and switches for consumer
appliances remained firm. Sales of automotive electronic components also expanded strongly, benefiting from increased
exports and the growing importance of electronics in automobiles. ECB also formed a new marketing organization to
strengthen sales of components for mobile devices. This strategy has started to produce results, including the launch of a
new flash for cameras in cell phones.
In overseas markets, although the telecommunications equipment industry was in a downturn in North America,
Europe and Asia, sales of relays and switches for consumer appliances remained firm and sales of automotive devices
expanded strongly.
➤➤ Strategies and Outlook
Although the emergence of Chinese manufacturers is expected to lead to increased price competition, ECB will
reinforce its overseas production capabilities, and optimize its sales network and strengthen marketing capabilities to
enhance its competitiveness in China. ECB will also augment resources in key sectors such as automotive components,
amusement-related products, and optical communication devices. In addition, the planning and development divisions of
the core relay business were integrated with a manufacturing subsidiary to create a new company, Omron Relay and
Device Co., Ltd., on April 1, 2003. The new organization will enable prompt response to customer needs. It will also
integrate four overseas production facilities and unify the management of the relay business, raising its speed and
operating efficiency.
Electronic Components Company
Annual Report 2003 • 13