Toshiba 2001 Annual Report Download - page 28

26
A year-on-year increase of 13% carried consolidated net sales
for fiscal 2000 to ¥1,551.4 billion (US$12,511 million). As
the segment moved into the black for the first time since fiscal
1998, operating income climbed to ¥116.4 billion (US$938
million). Among contributory factors were firm sales of discrete
devices, memories and system LSIs even though semiconductor
demand waned with the slowdown in the PC and peripherals
market in the second half. And earnings from LCD displays surged with the expanding
market for mobile devices. Toshiba is realigning its businesses in dramatic fashion,
with moves directed at developing products that excite the market and generate
stable earnings.
DRAM spot prices entered into a downward spiral in September 2000 that quickly made
its impact felt on Toshiba’s business. In the second half of the year, manufacturers signifi-
cantly scaled back production of PCs and peripherals and the mobile communications
and consumer electronics markets lost momentum, as demand dipped below the first-half
level. Despite this, robust performances in discrete devices, system LSIs and memories
in the first half of the year drove the Semiconductor Company to an 18% year-on-year
increase in sales to ¥1,100 billion. Cost-cutting measures and Management Innovation
2001 yielded operational gains, and these and other factors translated into a substantial
improvement in operating income.
Electronic
Devices
&
Components
1,137
1,373
1,551
’99 ’00 ’01
SHARE OF SALES (%)
Years ended Mar. 31 1999 2000 2001
18.6 21.1 22.4
NET SALES
(¥ billion)
In overseas markets, Toshiba reinforced its presence in Asia, primarily China. Rising power
demand in China has been accompanied by fast-paced infrastructure development of
transmission networks geared toward upping power transmission efficiency, while con-
trolling expansion of generation facilities. In October 2000, Toshiba, together with XJ
Electric Corporation, a leading manufacturer in the Chinese power transmission control
and protection field, and Henan Electric Power Construction Co., Ltd., a wholly owned
subsidiary of Henan Electric Power Corporation, established a joint venture to manu-
facture, sell, maintain and provide services for automated power distribution systems.
Toshiba also set up two manufacturing ventures to respectively produce gas insulated
switchgears and vacuum circuit breakers—key components in power transmission
networks for ensuring a stable power supply and increasing reliability.
In March 2000, Toshiba and International Fuel Cells Corporation (IFC) established
Toshiba International Fuel Cells Corporation (TIFC), a joint undertaking that will engage
in all aspects of fuel cell operations from development through maintenance. Global al-
liances transcending industry spheres and borders are driving mega-competition in the
industry. TIFC will weather this by expanding the traditional realm of on-site cells to deliv-
er fuel cells for residential applications. In Japan and the rest of Asia, TIFC will accelerate
its R&D efforts with a view to marketing fuel cells for commercial applications by 2004.
Success will allow TIFC to take center stage as a pioneer in a promising field.
Toshiba supplied the main nuclear power equipment for the world’s first 500kV
underground substation, TEPCO’s Shin-Toyosu Substation.