Toshiba 1999 Annual Report Download - page 40

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Page
38.
TOSHIBA ANNUAL REPORT 1999
INFORMATION & COMMUNICATION SYSTEMS—Sales increased 3 percent from the previous year to ¥2,247.3 billion
(US$18,573 million). Overseas sales climbed 12 percent to ¥1,057.1 billion (US$8,736 million), while domestic sales decreased 4
percent to ¥1,190.2 billion (US$9,837 million). PC sales rose 7 percent to ¥740.0 billion (US$6,116 million) on the back of strong
demand overseas. Sales of systems for broadcasting, communications and financial services were strong. However, sales of
computer systems for the government and public sector and corporate clients fell. In medical systems, there was a slight increase
in sales due to strong demand overseas.
ELECTRONIC DEVICES & MATERIALS—Sales decreased 7 percent compared with the previous year, to ¥1,250.8 billion
(US$10,337 million). Overseas sales dropped 7 percent to ¥610.2 billion (US$5,043 million) and domestic sales fell 6 percent to
¥640.6 billion (US$5,294 million). Sales of semiconductors and liquid crystal displays (LCDs) decreased 13 percent and 4 per-
cent, respectively, to ¥760.0 billion (US$6,281 million) and ¥110.0 billion (US$909 million). Lower sales prices for semiconduc-
tor memories, sluggish sales of logic ICs and semiconductors for consumer products, and lower LCD sales prices from early in
the fiscal year to midyear were the main factors behind decreased sales.
POWER & INDUSTRIAL SYSTEMS—Sales fell 12 percent compared with the previous year, to ¥990.0 billion (US$8,182
million). Overseas sales decreased 7 percent to ¥123.5 billion (US$1,021 million) and domestic sales dropped 12 percent to ¥866.5
billion (US$7,161 million). Sales of power plant and equipment and industrial equipment were down substantially due to curbs
on domestic capital expenditures and weakness in Asian markets.
CONSUMER PRODUCTS—Sales were almost the same as in the previous year at ¥1,040.4 billion (US$8,599 million). Over-
seas sales increased 7 percent to ¥321.3 billion (US$2,656 million) and domestic sales decreased 3 percent to ¥719.1 billion
(US$5,943 million). Weak consumer spending and housing investment was offset by sales growth in Japan for washing machines
featuring innovative features and strong demand overseas for televisions.
SERVICES & OTHER—Sales increased 1 percent compared with the previous year, to ¥423.8 billion (US$3,503 million). The
marginal gain was attributable to increased procurement of raw materials from overseas and other factors.
Net Sales by Region
Millions of yen
Years ended March 31 1999 1998 1997
Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥3,184,764 ¥3,418,807 ¥3,523,636
North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 842,999 794,241 852,214
Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 585,086 627,328 595,209
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 559,824 496,309 439,346
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,229 121,813 111,482
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥5,300,902 ¥5,458,498 ¥5,521,887
Note: Net sales by region are determined based upon the locations of the customers. Therefore, this information is different from the net sales
for geographic segments in segment information on page 41, which are determined based upon where the sales originated.
JAPAN—Sales in Japan decreased 7 percent from the prior fiscal year. Sales were down in all segments as the operating environ-
ment, characterized by declining private-sector capital expenditures and sluggish personal consumption, continued to pose challenges.
NORTH AMERICA—Sales rose 6 percent from the prior fiscal year on the back of higher PC sales, as Toshiba unveiled new
products, and strong television sales were fueled by robust consumer spending.
ASIA—Sales decreased 7 percent in this region from the prior fiscal year. In addition to soft demand caused by depression in
Asian economies, sales prices of semiconductors for consumer products fell suddenly.
EUROPE—Sales in Europe climbed 13 percent from the prior fiscal year. Although the pace of economic expansion continues to
decelerate in this region, good sales of PCs and medical systems contributed to the improved result.
Net Income
Cost of sales decreased 2 percent to ¥3,890.6 billion (US$32,154 million). Selling, general and administrative expenses decreased
3 percent to ¥1,379.8 billion (US$11,403 million). Operating income was down 63 percent compared with the previous year, to
¥30.5 billion (US$252 million). Declines in prices of such important products as semiconductors outweighed progress made in
raising manufacturing efficiencies and cost cutting, and reductions in expenses such as personnel and R&D.
Information & communication systems posted a 120 percent increase in operating income compared with the previous year,