Omron 2009 Annual Report Download - page 57

55
Costs, Expenses, and Income as Percentages of Net Sales
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Research and development expenses
Interest expenses (income), net
Income (Loss) from continuing operations before income taxes,
minority interests, and equity in loss of affiliates
Income taxes
Income (Loss) from continuing operations
Income from discontinued operations
Net income (loss)
FY2007 FY2006
100.0%
61.6
38.4
23.1
6.7
(0.1)
8.4
3.2
5.2
0.4
5.6
FY2008
100.0%
65.2
34.8
26.2
7.7
0.0
(6.2)
(1.6)
(4.7)
—
(4.7)
100.0%
61.6
38.4
22.6
7.2
(0.1)
8.9
3.6
5.1
0.2
5.3
Segment Information
IAB (Industrial Automation Business)
IAB net sales declined 20.0% year on year to ¥262.9 bil-
lion and operating income fell 60.6% to ¥20.5 billion. Sales
were suppressed by the postponement and cancellation
of large-scale equipment investment projects beginning in
the third quarter, particularly in the semiconductor, flat
panel display, and automotive industries. Sales were also
down sharply in the Asia Pacific and Greater China regions,
where sales had been holding relatively firm.
ECB (Electronic Components Business)
ECB net sales decreased 19.6% year on year to ¥123.9 bil-
lion and operating income declined from ¥12.6 billion in
the previous fiscal year to a ¥2.0 billion operating loss in
fiscal 2008. The result was mainly due to a further decline
in demand from the semiconductor and automotive indus-
tries in the second half, stepped up inventory adjustment
measures in the business and consumer equipment sec-
tors, and a loss of the previously steady momentum in
orders for small-sized backlights and input switches for
mobile devices.
AEC (Automotive Electronic Components Business)
AEC net sales declined 23.6% year on year to ¥82.1 billion
and operating income declined from ¥1.4 billion in the pre-
vious fiscal year to a ¥6.4 billion operating loss in fiscal
2008. The primary factors were the spikes in gasoline prices
and the global recession, which combined to sharply reduce
automobile demand. Sales were also sluggish in China and
emerging economies, largely due to declines in unit sales
of mid- and large-size vehicles.
1. Review of Operations by Business Segment
to a net loss of ¥29.2 billion in fiscal 2008. Basic net income
per share decreased to a ¥132.2 net loss per share, down
from ¥185.9 in the previous year.
Based on our profit distribution policy (see page 19) and
in consideration of the earnings results, ordinary dividends
of ¥25 per share were distributed in the fiscal year under
review.
Note: Segment operating income is prepared using the single-step method (that does not show individual income levels) based on U.S. GAAP. For
easier comparison to other segment companies, operating income represents gross profit minus selling, general and administrative expenses,
and research and development expenses.
Note: In segment information, sales represents sales to external customers and excludes inter-segment transactions. Conversely, operating income
includes income from inter-segment income transactions before deductions of headquarters expenses and other non-apportionable amounts.
yen
Dividends per Share
0
10
20
30
40
50
04 05 0806 07 (FY)
Please refer to pages 32–42 for detailed segment business results, fiscal 2009 outlook, and strategy.