Toshiba 1999 Annual Report Download - page 39

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Page
37.
TOSHIBA ANNUAL REPORT 1999
MANAGEMENT’S DISCUSSION & ANALYSIS
Millions of yen, except per share amounts
1999 1998 1997 1996 1995
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥5,300,902 ¥5,458,498 ¥5,521,887 ¥5,192,244 ¥4,864,015
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . 3,890,622 3,960,158 3,932,585 3,647,624 3,435,146
Selling, general and
administrative expenses . . . . . . . . . . . . . 1,379,797 1,416,046 1,391,471 1,282,053 1,260,053
Operating income . . . . . . . . . . . . . . . . . . . 30,483 82,294 197,831 262,567 168,816
Income before income taxes and
minority interest . . . . . . . . . . . . . . . . . . . 11,218 18,748 125,456 177,749 120,674
Income taxes . . . . . . . . . . . . . . . . . . . . . . . 25,494 24,475 71,593 102,965 67,607
Net (loss) income . . . . . . . . . . . . . . . . . . . . (13,896) 7,337 67,077 90,388 44,693
Per share of common stock:
Net (loss) income—
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . ¥(4.32) ¥ 2.28 ¥20.84 ¥28.08 ¥13.89
Diluted . . . . . . . . . . . . . . . . . . . . . . . . (4.32) 2.28 20.06 26.85 13.54
Cash dividends . . . . . . . . . . . . . . . . . . . . 6.00 10.00 10.00 10.00 10.00
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . ¥6,023,557 ¥6,062,141 ¥5,809,285 ¥5,560,484 ¥5,463,290
Shareholders’ equity . . . . . . . . . . . . . . . . . 1,050,336 1,201,615 1,264,775 1,202,265 1,118,808
Capital expenditures
(property, plant and equipment) . . . . . . . 375,464 339,584 341,020 308,653 293,823
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . 309,836 291,418 252,732 261,985 283,575
R&D Expenditures. . . . . . . . . . . . . . . . . . . 316,703 322,928 332,555 314,774 302,171
Number of employees . . . . . . . . . . . . . . . . 198,000 186,000 186,000 186,000 190,000
Notes: 1. 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 assumes the dilution that would occur if dilutive convertible debentures were converted into
common stock.
2. The company has not adopted Statement of Financial Accounting Standards (SFAS) No. 115 “Accounting for Certain Investments 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.
FIVE-YEAR SUMMARY
Toshiba Corporation and its subsidiaries
Years ended March 31
RESULTS OF OPERATIONS
Net Sales
Consolidated net sales in fiscal 1998, the year ended March 31, 1999, decreased 3 percent compared to the previous year, to
¥5,300.9 billion (US$43,809 million). This decline was primarily attributable to three factors. First was a sudden drop in sales
prices for semiconductor memories and sluggish demand for logic ICs and semiconductors used in consumer products. Second
was a decline in demand for systems from corporate customers due to reduced private-sector capital expenditures in Japan. Third
was soft sales of power and industrial systems. The average U.S. dollar exchange rate for sales rose from ¥122 in fiscal 1997 to
¥130 in fiscal 1998. Overall, foreign exchange movements had the net effect of increasing net sales by ¥60.0 billion. Consolidated
data include the results of 219 subsidiaries in Japan and 102 overseas subsidiaries.
By region, sales in Japan decreased 7 percent to ¥3,184.8 billion (US$26,320 million). In contrast, overseas sales increased 4
percent to ¥2,116.1 billion (US$17,489 million) and accounted for 40 percent of total sales, up from 37 percent in the prior fiscal
year. Overseas production increased from ¥940.0 billion in fiscal 1997 to ¥1,040.0 billion (US$8,595 million) in fiscal 1998. This
accounted for 49 percent of overseas sales.