Pentax 2002 Annual Report Download - page 25

23
»Eye Care (Health Care Division)
The Health Care division posted 14.8% growth in net sales, to
¥23,106 million. The division’s share of total net sales increased
to 9.8% from 8.5% in the previous fiscal year. Operating in-
come jumped 42.6% to ¥3,429 million. Operating income ra-
tios by quarter were 12.9% for the first quarter, 14.7% for the
second, and 16.0% for the third. In the fourth quarter, operat-
ing income ratio dropped to 13.6%. For the fiscal year, the
operating income ratio was 14.3%, up from 11.1% in the pre-
vious fiscal year.
This division’s net sales growth rate showed a remarkable
increase, rising to 14.8 % from 3.1% a year ago. The position
of the circle on the graph on page 22 representing this division’s
net sales has improved significantly, and the circle represent-
ing operating income shows substantial growth. The circle is
moving toward the positive range on the abscissa, and the ra-
tio of operating income to net sales increased by 3.2 percent-
age points, as the division showed growth across the board.
Capital expenditures in this division were reduced by 39.6%
to ¥687 million.
»Lifestyle Refinement (Crystal Division)
Consolidated net sales in the Crystal division dropped 11.6%
to ¥8,788 million. As a percentage of the Company’s total net
sales, this represents a decline to 3.7% from 4.2% a year ago.
The division posted an operating loss of ¥1 million, compared
with income of ¥285 million in the previous fiscal year.
The net sales growth rate worsened to negative 11.6% from
negative 5.5% in the previous fiscal year, and this, together
with the operating loss, caused the division’s position on the
circle graphs to trend toward the negative range on the ordi-
nate, and the division’s circle itself to disappear. On the ab-
scissa, which represents the ratio of operating income to net
sales, the division’s circle is just above the 0% level.
Profitability is the most pressing issue for this division. Dis-
tortions in the industry structure have produced an environ-
ment in which a firm can no longer expect to succeed in im-
proving profitability just by expanding its sales. The first pri-
ority is setting the optimum level for sales, and steadily secur-
ing profits. This division’s goal now is to achieve an ordinary
income ratio of 10%, and it is proceeding with reforms to its
business structure. The division’s future issues are clear from
the graph on page 22. First, it needs to become profitable to
get on the graph at all. Then, the division has to trend upward
on the ordinate by expanding its net sales. After that, it needs
to move rightward on the abscissa by getting its profit ratios
up.
Capital expenditures in this division declined to ¥254 mil-
lion from ¥610 million in the previous fiscal year.
0 5 10 15 20 25 30 35 40
-25
0
-10
5
35
20
50
Sales Growth Ratio (%)
Operating Income Ratio (%)
North America
Europe
Japan
Asia Company-wide ratio
Company-wide ratio
Sales Growth and Profitability by Geographical Segment
Size of circle shows the volume of operating income.
Fiscal year ended March 31, 2002 (Compared with the previous fiscal year)