YASKAWA ELECTRIC CORPORATION Annual Report 1999
YASKAWA ELECTRIC CORPORATION Annual Report 1999
YASKAWA ELECTRIC CORPORATION Annual Report 1999
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To Our Shareholders<br />
2 <strong>YASKAWA</strong> <strong>ELECTRIC</strong> <strong>CORPORATION</strong><br />
During fiscal <strong>1999</strong>, ended March 20, <strong>1999</strong>, consolidated net sales by Yaskawa<br />
Electric Corporation declined 15.3%, to ¥227.4 billion. Ordinary income plunged<br />
98.6%, to ¥155 million, and the Company posted a net loss of ¥3.8 billion.<br />
Regarding sales by product group, sales in Mechatronics Components declined 20.3%,<br />
to ¥99.4 billion. This decrease primarily reflected lower sales of AC servos due to worsening<br />
results in the semiconductor manufacturing equipment industry and the chip mounting equipment<br />
industry, which are principal users. Factors undermining sales of AC servos included<br />
the slowdown in the previously robust North American machine tools industry. Sales of inverters<br />
were adversely affected by a decline in private-sector capital investment.<br />
Sales in Mechatronics Systems declined 11.5%, to ¥40.5 billion, due to deteriorating performances<br />
by our principal customers in the semiconductor manufacturing industry. This<br />
adversely affected sales of such supermechatronics products as transportation systems for<br />
use in superclean and vacuum environments. On the other hand, sales of industrial robots<br />
recorded smooth growth.<br />
Sales in Industrial Electric Components fell 17.7%, to ¥35.6 billion. This fall mirrored the<br />
effects of a decline in private-sector capital investment and sluggishness in Asian economies.<br />
Sales in Industrial Electrical Control Systems were down 8.9%, to ¥35.5 billion, owing to<br />
curtailments in capital expenditures in principal manufacturing industries.<br />
Sales in others increased 3.3%, to ¥16.2 billion. This gain was supported by a favorable<br />
performance in information services, including application software and data processing.<br />
During fiscal <strong>1999</strong>, overseas sales amounted to ¥69.8 billion, or approximately 31% of<br />
net sales. As a result of the difficult conditions in the business environment, the Company<br />
has decided to forgo the payment of dividends.<br />
To improve Yaskasa’s business performance, in the midst of Project 2000 the Company is<br />
revising this plan and formulating an updated medium-term management plan that will guide<br />
its operations through fiscal 2003, while implementing four structural reforms aimed at transforming<br />
itself into a company with a high-profit structure.