JVC 1998 Annual Report Download - page 4

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2JVC 1998
During the fiscal year ended March 31, 1998, JVC implemented
several changes to fortify its position as a highly competitive global
company in the multimedia era.
The Company made substantial progress in strategically shifting
to a lineup of high-value-added digital products for the multimedia
era in its Consumer Electronics, Professional Electronics, Compo-
nents & Devices, and Entertainment businesses. We also con-
tinued to establish our global network and to achieve a more
streamlined and efficient management structure.
Environment and Performance
Around the world, the electronics industry saw signs of the antici-
pated full-scale arrival of the multimedia era. Market growth con-
tinued for products that communicate in the universal language of
this era–digital–including such audiovisual (AV) products as digital
camcorders and minidiscs (MDs). On the contrary, world prices fell
for conventional products.
The unprecedented downturn in the Japanese economy ad-
versely affected JVC despite the Company’s early start in global-
ization and high ratio of overseas sales to consolidated net sales.
Lower consumer demand and a reduction in public investment led
to a significant decline in domestic demand for Consumer and
Professional Electronics. In addition, orders fell in Components &
Devices business as a result of personal computer inventory
adjustments due to weak demand. Overseas, demand in the
United States and Europe, JVC’s principal markets, remained
strong.
Amid this business environment, JVC worked to build an oper-
ating structure that does not rely excessively on conventional
types of AV equipment, which are undergoing an inevitable fall in
prices. Guided by the “Victor Vision” three-year plan, which
entered its final year this term, the Company applied its competi-
tive edge to the multimedia era with timely product development
and market introductions.
In Consumer Electronics, the Company bolstered its New AV
lineup of high-value-added digital products. New AV, comprising
such products as digital camcorders, MD audio products and
high-definition televisions (HDTVs), accounted for 16% of Con-
sumer Electronics sales, up from 14% in the previous fiscal year.
Orders have expanded substantially in strategic businesses, which
are predicted to grow sharply, for such Professional Electronics
products as the direct-drive image light amplifier (D-ILA) multi-
media projector and the Digital-S video system as well as such
Components & Devices products as high-precision build-up multi-
layer boards.
Consolidated net sales rose 2.9% to ¥916,306 million
(US$6,941.7 million) compared with the previous fiscal year.
Domestic sales were ¥390,021 million (US$2,954.7 million), down
3.9%, and overseas sales amounted to ¥526,285 million
(US$3,987.0 million), an increase of 8.6%.
To Our Stockholders and Friends