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Automotive Relay
17
OPERATING RESULTS IN FISCAL 2003
Production in the domestic automobile
industry was flat on a unit basis. On the
other hand, production showed a 3%
year-on-year decline in North America,
which is one of our major markets
accounting for 36% of the segment sales.
The appreciation of the Japanese yen and
the Canadian dollar against the U.S. dollar,
and intensified price competition, also neg-
atively affected the business environment
surrounding the business segment.
Given that context, domestic sales for
the AEC segment were up 5.4%, to ¥24.8
billion, with overseas sales down 5.4% ver-
sus the previous year, to ¥34.0 billion,
resulting in an overall decline of 1.1% to
¥58.8 billion.
Domestically, in addition to electric
power steering controllers, expansion in
new safety related products, such as laser
radars and door lock controllers, con-
tributed to the sales growth.
Overseas, however, sales in North
America dropped 10.8% (3.7% decrease
on local currency basis) compared to the
previous year due to production and inven-
tory adjustments centered on the Big
Three. In Europe, on the other hand, a
strong sales performance by on-board
relays for electric components manufactur-
ers resulted in a 9.4% increase to ¥4.0 bil-
lion (0.3% increase based on local curren-
cy basis) versus the previous year. In the
countries of Asia, despite strikes at the
facilities of our major client in Korea,
growth of 1.9% (8.2% increase based on a
local currency basis) was recorded.
FUTURE OUTLOOK AND STRATEGY
For fiscal 2004, we anticipate a slight
increase in unit sales of domestic automo-
biles and a recovery in unit sales in the
North American automobile market.
Corresponding this background, the AEC
segment will be aggressively working on
the sales and marketing activities in
response to launching of new car models
both domestically and overseas, as well as
promoting development of products
focused on safety and environmental
friendliness. In the area of safety, the
Omron Group will be devoting particular
efforts to laser sensors for measuring the
distance between vehicles, various door
lock control technology (anti-pinching
function), wireless technology for applica-
tion with security devices, and tire pres-
sure monitoring systems (TPMS). In terms
of the development of environmentally
friendly products, we are focusing mainly
on electric power steering systems with
improved fuel consumption. Based on
these efforts, we expect a 6.2% increase
year-on-year to ¥62.5 billion in sales for
the segment during fiscal 2004.
This system is to lock or unlock
doors by remote control in con-
junction with hazard lamp. The
maximum distance between
transmitter and receiver is
expanding, and the sensitivity
of the sensor is increasing.
High reliability and longevity are
the important aspects required
for automotive relays.
Especially the demand for auto-
motive PBC relay is rapidly
increasing for the use of motor
control.
Keyless Entry System