Toshiba 1998 Annual Report Download - page 30

28. Toshiba Corporation Annual Report 1998
Net Sales by Region Million s of yen
Years ended March 31 1998 1997 1996
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥3,418,807 ¥3,523,636 ¥3,523,220
North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 794,241 852,214 671,219
Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627,328 595,209 543,668
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496,309 439,346 364,203
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,813 111,482 89,934
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥5,458,498 ¥5,521,887 ¥5,192,244
Note:Net sales by region are determined based upon the locations of the custom ers. Therefore, this information is different from the net sales for
geographic segments in segm ent information on page 31, which are determined based upon where the sales originated.
m illion). PC sales increased in Europe, but price erosion an d inten se com petition in the United States impacted
results. Sales of computer system s for corporate clien ts rose in the dom estic market. CD-ROM an d hard disk drives
turned in strong perform an ces overseas. In m obile telecom m un ication s equipm en t, sales declined as soft dom estic
dem and for personal h andy-ph ones offset growth in overseas cellular phone m arkets. Medical system s sales benefited
from strong growth in orders for MRIs and ultrasound diagnostic equipm en t.
Electronic Devices & Materials—Sales in creased 5 percent com pared with th e previous year, to ¥1,341.8 billion
(US$10,165 million ). Overseas sales were up 6 percen t to ¥656.9 billion (US$4,977 m illion) and dom estic sales
clim bed 3 percen t to ¥684.9 billion (US$5,188 m illion ). Sem icon ductor sales decreased 2 percen t to ¥870.0 billion
(US$6,591 million ). High er sales of logic ICs and discrete devices were insufficient to offset a steep drop in sales prices
of 16M DRAMs. Liquid crystal display sales were alm ost unchan ged com pared with th e previous year, at ¥115.0 billion
(US$871 m illion) as record sales in the first h alf of th e year were offset by lower deman d and sales prices in the secon d
half. Overseas sales of color picture tubes for TVs an d display tubes for com puters were up by 14 percent. Rech arge-
able batteries also turn ed in a good perform ance.
Power & Industrial System s—Sales decreased 4 percen t com pared with th e previous year, to ¥1,119.6 billion
(US$8,482 million ). Overseas sales in creased 18 percen t to ¥132.2 billion (US$1,001 m illion ), but declin ed 6 percent
dom estically to ¥987.4 billion (US$7,481 million ). The declin e was mostly the result of lower orders for n uclear an d
th ermal power gen eration equipm en t in Japan as Japanese utilities held back on capital expenditures. Contracts for
power generation equipm en t outside Japan rose, m ain ly in Asia.
Consumer Products—Sales declin ed 10 percent com pared with th e previous year, to ¥1,040.4 billion (US$7,882
m illion). Un seasonable sum m er weather in Japan brought about a drop in sales of air con dition ers, a m ajor elemen t
of th is segm en t. Weak dom estic dem and, due in part to a con sumption tax h ike from 3 to 5 percen t, alon g with a
declin e in prices led to lower sales of television s, wash ing machin es, refrigerators and other products. Toshiba achieved
high er sales of som e n ewly in troduced hom e applian ces offerin g en h anced perform an ce an d new fun ctions, but
dom estic sales sank by 13 percen t com pared with th e previous year, to ¥740.0 billion (US$5,606 m illion). Overseas sales
decreased 2 percen t to ¥300.4 billion (US$2,276 million ), mostly because of weakness in Ch in a an d South east Asia.
Services & Other—Sales advan ced 13 percent com pared with th e previous year, to ¥420.0 billion (US$3,182 m illion ).
This growth was main ly due to a newly consolidated subsidiary, Tosh iba Building & Lease Co., Ltd. Most sales repre-
sent tran sactions of dom estic subsidiaries in volved in fin ancial services, real estate leasing and sales, and logistics.
The main subsidiaries in th is segm ent are Toshiba Credit Corporation, Tosh iba Buildin g & Lease Co., Ltd. an d
Toshiba Logistics Corporation .
Japan—Sales in Japan decreased 3 percen t from th e prior fiscal year. This was m ostly th e result of weakness in orders
for power gen eration equipm en t an d lower sales of air con ditioners, television s an d other consum er products.
North America—Sales in North Am erica decreased 7 percent from the prior fiscal year. Th is was caused prim arily by a
drop in PC sales, along with substantial m emory price declin es. Sales of CD-ROM and h ard disk drives rose. Mobile
teleph one sales in creased sligh tly.
Asia—Sales in this region in creased 5 percen t from the prior fiscal year. Sales of color picture tubes for TVs an d
display tubes for com puters were up. Semicon ductor subsidiaries also m ade a positive con tribution. Sales of such
con sum er products as air condition ers were down con siderably due to the currency crisis.