Toshiba 1997 Annual Report Download - page 30

28.
SEGMENT INFORMATION
The following segment information is based on Japanese accounting standards. As Japanese accounting standards do not
require retroactive application of newly adopted standards, certain columns in the following tables are left blank for
periods which precede the adoption of new disclosure requirements.
Industry Segments
Thousands of
Millions of yen U.S. dollars
Years ended March 31 1997 1996 1995 1997
Net sales:
Information/Communication Systems
and Electronic Devices
Unaffiliated customers . . . . . . . . . . . . . . . . . . . ¥3,075,603 ¥2,687,319 ¥2,386,327 $24,803,250
Intersegment . . . . . . . . . . . . . . . . . . . . . . . . . 180,599 177,239 192,453 1,456,444
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,256,202 2,864,558 2,578,780 26,259,694
Heavy Electrical Apparatus
Unaffiliated customers . . . . . . . . . . . . . . . . . . . 1,108,761 1,178,612 1,088,621 8,941,621
Intersegment . . . . . . . . . . . . . . . . . . . . . . . . . 63,995 54,173 58,830 516,089
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,172,756 1,232,785 1,147,451 9,457,710
Consumer Products and Others
Unaffiliated customers . . . . . . . . . . . . . . . . . . . 1,269,033 1,254,155 1,315,818 10,234,137
Intersegment . . . . . . . . . . . . . . . . . . . . . . . . . 33,297 50,970 68,006 268,524
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,302,330 1,305,125 1,383,824 10,502,661
Eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . (277,891) (282,382) (319,289) (2,241,057)
Consolidated . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥5,453,397 ¥5,120,086 ¥4,790,766 $43,979,008
Information/communication systems and electronic devices segment operating income decreased 32 percent to ¥141.8
billion (US$1,144 million). Higher income from PCs and PC peripherals and from mobile telecommunications products
could not offset a steep fall in semiconductor earnings. Heavy electrical apparatus operating income was down 29 percent
to ¥29.6 billion (US$239 million) as sales of power plants and equipment to Japanese utilities fell. Consumer products and
others reported an operating loss of ¥17.3 billion (US$140 million), an improvement of ¥12.1 billion (US$98 million)
compared with one year earlier. Results improved at sales companies in North America and Hong Kong, and sales of
washing machines were up in Japan. However, overall segment performance was severely impacted by poor refrigerator
and TV results in Japan due to persistent competition.
Toshiba estimates that the net effect of foreign exchange movements during fiscal 1996 was a ¥109.0 billion (US$879
million) increase in operating income. Foreign exchange movements raised net sales by ¥138.0 billion (US$1,113
million) and increased procurement expenses by ¥29.0 billion (US$234 million). Non-operating expenses include foreign
exchange loss of ¥21.4 billion (US$172 million), which is a decrease of ¥15.7 billion (US$126 million) compared with
the previous fiscal year.
Income before income taxes and minority interest decreased 29 percent to ¥125.5 billion (US$1,012 million). The
decline was reduced somewhat by a reduction in interest expenses due to lower interest rates in Japan. Income taxes
decreased to ¥71.6 billion (US$577 million). Equity in income of affiliated companies decreased by ¥2.9 billion (US$24
million) to ¥14.5 billion (US$117 million). Net income fell 26 percent to ¥67.1 billion (US$541 million), 12 percent
higher than parent-company net income. Net income per share was ¥20.06 (US$0.16), down from ¥26.85 and cash
dividends applicable to fiscal 1996 were unchanged at ¥10.00 (US$0.08).