YASKAWA ELECTRIC CORPORATION Annual Report 1999

Financial Review
Business Results
In the fiscal year ended March 20, 1999, Yaskawa recorded a
15.3% decrease in consolidated net sales, to ¥227.4 billion. By
product group, sales in Mechatronics Components fell 20.3%,
to ¥99.4 billion, accounting for 43.7% of net sales. This fall
reflected a decrease in sales of AC servos as well as inverters
in the domestic and overseas markets. Sales in Mechatronics
Systems dropped 11.5%, to ¥40.5 billion, making up 17.8% of
the Group’s net sales. This was due to weaker demand for
supermechatronics products for use in semiconductor production
equipment. Sales in Industrial Electric Components
decreased 17.7%, to ¥35.6 billion, which accounted for 15.7%
of net sales. The decline in this category was due to sluggish
capital investment in domestic manufacturing industries and
the effects of economic turmoil in Asia. In Industrial Electrical
Control Systems, sales fell 8.9%, to ¥35.5 billion, or 15.6% of
net sales. This decrease was the result of slumping capital
investment in domestic manufacturing industries. Sales in
others amounted to ¥16.2 billion, making up 7.2% of net sales.
Cost of sales amounted to ¥166.0 billion and the cost of
sales ratio was 73.0%, 1.4 percentage points higher than in the
previous fiscal year. Selling, general & administrative (SG&A)
expenses amounted to ¥60.8 billion. SG&A expenses as a percentage
of net sales increased to 26.7%, from 23.4% in the
previous fiscal year. Net operating income sank 95.5%, to ¥0.5
billion. Ordinary income plunged 98.6%, to ¥0.1 billion. Net
loss after taxes and minority interest was ¥3.8 billion, compared
Non-Consolidated Five-Year Summary
YASKAWA Electric Corporation Years ended March 20
6 YASKAWA ELECTRIC CORPORATION
with net income after taxes and minority interest of ¥5.3 billion
in the previous fiscal year.
On a non-consolidated basis, Yaskawa recorded net sales of
¥135.1 billion, a 13.1% decrease from the previous fiscal year.
Cost of sales fell 7.8%, to ¥106.6 billion, and SG&A expenses
were down 6.4%, to ¥33.0 billion. The cost of sales ratio
increased 4.5 percentage points, to 78.9%. Net operating loss
was ¥4.5 billion, compared with net operating income of ¥4.4 billion
in the previous fiscal year, and ordinary loss was ¥1.7 billion,
compared with ordinary income of ¥4.4 billion in the previous
year. Net loss after taxes was ¥2.9 billion, compared with net
income after taxes of ¥1.5 billion in the previous fiscal year.
Financial Position
At fiscal year-end, consolidated total assets amounted to
¥227.3 billion, 9.9% lower than at the previous fiscal year-end.
Working capital increased to ¥37.4 billion, from ¥20.2 billion, primarily
reflecting the redemption of debentures due within one
year in current liabilities. Fixed liabilities jumped to ¥59.0 billion,
from ¥34.4 billion at the previous fiscal year-end. The current
ratio improved to 1.3, from 1.1 at the end of the previous fiscal
year. Total shareholders’ equity amounted to ¥38.4 billion, down
¥5.1 billion from the previous fiscal year-end.
On a non-consolidated basis, total assets at fiscal year-end
fell 11.6% from the previous fiscal year-end, to ¥149.0 billion.
Total shareholders’ equity amounted to ¥36.3 billion, 10.3%
lower than at the previous fiscal year-end.
Thousands of
U.S. Dollars
Millions of Yen (except per
(except per share amounts) share amounts)
1999 1998 1997 1996 1995 1999
Net sales ¥135,165 ¥155,492 ¥151,548 ¥139,673 ¥123,383 $1,149,859
Cost of sales 106,625 115,702 113,215 103,670 93,555 907,065
Selling, general & administrative expenses 33,069 35,316 34,346 33,172 30,212 281,323
Net operating income (loss) (4,529) 4,473 3,985 2,830 (384) (38,530)
Ordinary income (loss) (1,700) 4,420 4,181 2,127 514 (14,463)
Provision for taxes 156 1,837 2,235 1,278 108 1,332
Net income (loss) after taxes (2,964) 1,590 1,283 358 120 (25,217)
Total assets ¥149,026 ¥168,567 ¥160,086 ¥155,053 ¥149,562 $1,267,767
Total shareholders’ equity 36,348 40,523 39,896 38,613 37,141 309,220
Net income (loss) per 100 shares of
common stock (yen and U.S. dollars)
Cash dividends per 100 shares of
¥(1,277) ¥685 ¥553 ¥156 ¥52 $(10.86)
common stock (yen and U.S. dollars) — 500 400 — — —
Rate: ¥117.55=US$1 (As of March 20, 1999)