Toshiba 1998 Annual Report Download - page 29

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Toshiba Corporation Annual Report 1998 27.
Management’s Discussion & Analysis
Million s of yen, except per share amounts
1998 1997 1996 1995 1994
Net sales . . . . . . . . . . . . . . . . . . . . . . . . ¥5,458,498 ¥5,521,887 ¥5,192,244 ¥4,864,015 ¥4,702,334
Cost of sales . . . . . . . . . . . . . . . . . . . . . 3,960,158 3,932,585 3,647,624 3,435,146 3,371,517
Sellin g, general an d
adm in istrative expenses . . . . . . . . . . . 1,416,046 1,391,471 1,282,053 1,260,053 1,224,081
In com e before incom e taxes an d
minority interest . . . . . . . . . . . . . . . . . 18,748 125,456 177,749 120,674 90,190
Income taxes. . . . . . . . . . . . . . . . . . . . . 24,475 71,593 102,965 67,607 75,506
Net income . . . . . . . . . . . . . . . . . . . . . . 7,337 67,077 90,388 44,693 12,140
Per share of common stock:
Net in com e—
Basic . . . . . . . . . . . . . . . . . . . . . . . . ¥ 2.28 ¥20.84 ¥28.08 ¥13.89 ¥ 3.78
Diluted . . . . . . . . . . . . . . . . . . . . . . 2.28 20.06 26.85 13.54 3.78
Cash dividends . . . . . . . . . . . . . . . . . 10.00 10.00 10.00 10.00 10.00
Total assets . . . . . . . . . . . . . . . . . . . . . . ¥6,062,141 ¥5,809,285 ¥5,560,484 ¥5,463,290 ¥5,350,690
Shareholders’ equity . . . . . . . . . . . . . . . 1,201,615 1,264,775 1,202,265 1,118,808 1,117,725
Number of employees . . . . . . . . . . . . . 186,000 186,000 186,000 190,000 175,000
Notes:
1. The above net income per share data are computed based on Statement of Financial Accounting Standards (SFAS) No. 128, “Earnings per
Share,” which Toshiba adopted in the fiscal year ended March 31, 1998. All prior-period EPS data presented have been restated to conform
with SFAS No. 128. Basic earnings per share is computed based on the weighted-average number of shares of common stock outstanding
during the period. Diluted earnings per share assum es the dilution that would occur if dilutive convertible debentures were converted into
comm on stock.
2. The company has not adopted Statement of Financial Accounting Standards (SFAS) No. 115 “Accounting for Certain Investm ents in Debt
and Equity Securities” which became effective for the fiscal year beginning April 1, 1994. The effects on the consolidated financial statements
of not adopting SFAS No. 115 and the disclosures required by SFAS No. 115 are summarized in a note to the consolidated financial statements.
3. Beginning with the fiscal year ended March 31, 1998, revenues and expenses from financial services, real estate leasing and sales, and other
operations are reported as operating activities, whereas they were reported as non-operating activities in prior periods. Prior-period data for the
fiscal years ended from March 31, 1994 through 1997 have been reclassified to conform with the current classification.
FIVE-YEAR SUMMARY
Toshiba Corporation and its subsidiaries
Years ended March 31
RESULTS OF OPERATIONS (See segm en t in form ation on page 29)
Net Sales
Con solidated n et sales decreased 1 percen t com pared with th e previous year, to ¥5,458.5 billion (US$41,352 million )
in Tosh iba’s 1997 fiscal year, which ended on March 31, 1998. Durin g the year, the yen weaken ed again st a num ber
of m ajor curren cies. The average U.S. dollar exchan ge rate for sales rose from ¥112 in fiscal 1996 to ¥122 in fiscal
1997. Overall, foreign exch ange m ovem ents h ad the n et effect of in creasing n et sales by ¥60.0 billion. Consolidated
data include th e results of 221 subsidiaries in Japan and 85 overseas subsidiaries.
By region, sales in Japan decreased 3 percen t to ¥3,418.8 billion (US$25,900 m illion). Overseas sales increased 2
percent to ¥2,039.7 billion (US$15,452 m illion) and accoun ted for 37 percent of total sales, up from 36 percent in the
prior fiscal year. Overseas production increased from ¥910.0 billion in fiscal 1996 to ¥940.0 billion (US$7,121 m illion)
in fiscal 1997. Th is was 46 percent of overseas sales, the sam e as in the prior fiscal year.
Information & Com m unication Systems—Sales increased 2 percent from the previous year to ¥2,184.1 billion
(US$16,546 million ). Overseas sales decreased 1 percen t to ¥947.7 billion (US$7,179 m illion), wh ile dom estic sales
rose 4 percen t to ¥1,236.4 billion (US$9,367 m illion). PC sales were down 7 percen t to ¥690.0 billion (US$5,227