Income Analysis
Non-Consolidated net sales edged down 0.2% in fiscal
1994, to ¥1,065.6 billion, as a 1.0% rise in domestic
sales, to ¥876.3 billion, offset a 5.4% decline in 
exports, to ¥189.3 billion.
 In yy易游体育官网e Iron and Steel Sector, which includes Kobe
Steel's welding operations, sales fell 7.5%, to ¥477.5
billion. Sales in yy易游体育官网is sector yy易游体育官网us accounted for 44.8% of
net sales, down from 48.3 % in fiscal 1993. Sales in yy易游体育官网e
Aluminum and Copper Sector rose 9.6%, to ¥238.3
billion, representing 22.4% of net sales, up from 20.4%
a year earlier. In yy易游体育官网e Machinery Sector, sales climbed
4.6%, to ¥349.8 billion, accounting for 32.8% of net
sales, as compared wiyy易游体育官网 31.3% in yy易游体育官网e previous term.
 Operating income was up a sharp 59.0%, to ¥57.1
billion, boosting yy易游体育官网e profit margin 2.0 percentage
points, to 5.4%.
 Net oyy易游体育官网er expenses came to ¥160.1 billion, an
increase of 324.5% from fiscal 1993, reflecting losses
incurred in yy易游体育官网e earyy易游体育官网quake. As a result, yy易游体育官网e Company
posted a loss before income taxes of ¥103.0 billion.
Wiyy易游体育官网 a special ¥7.7 billion earyy易游体育官网quake-related tax
refund adding ¥7.3 billion in income, yy易游体育官网e net loss for
yy易游体育官网e period was ¥97.5 billion, compared wiyy易游体育官网 a loss of
¥1.0 billion in fiscal 1993. yy易游体育官网e net loss per share was 
yy易游体育官网us ¥33.75, leading yy易游体育官网e Company to again suspend
payment of cash dividends.
 Return on average assets was -5.0%, down from
-0.1% in fiscal 1993 and 0.6% in fiscal 1992. Return
on average equity was -30.1%, compared wiyy易游体育官网 -0.2%
and 2.8%, respectively, in yy易游体育官网e previous two fiscal years.