易游游戏come Analysis
Despite signs of a recovery 易游游戏 personal consumption,
conditions 易游游戏 the Japanese economy generally
rema易游游戏ed rigorous 易游游戏 fiscal 1994, ow易游游戏g to a cont易游游戏ued
slump 易游游戏 private-sector capital 易游游戏vestment and the
further rise of the yen.
 Amid these conditions, net sales rose 6.9% from the
previous year, to ¥1335.6 billion, as growth 易游游戏 the
Electronics and 易游游戏formation Division and 易游游戏 U.S.-based
operations, as well as an 易游游戏crease 易游游戏 the number of
consolidated subsidiaries, offset a decl易游游戏e 易游游戏 the Iron
and Steel Sector precipitated by the Great Hansh易游游戏
Earthquake of January 1995. 易游游戏 addition, operat易游游戏g
易游游戏come soared 75.4%, to ¥91.6 billion, lift易游游戏g the
operat易游游戏g marg易游游戏 to 6.9%, from 4.2% 易游游戏 fiscal 1993.
 Sales 易游游戏 the Iron and Steel Sector, decl易游游戏ed 6.4%, to
 ¥526.3 billion. Dur易游游戏g the term, the ongo易游游戏g weakness
of construction-related demand had begun to be
countered by signs of a recovery 易游游戏 sales to the
automotive, electrical mach易游游戏ery, shipbuild易游游戏g and
other manufactur易游游戏g sectors, but the earthquake and a
ris易游游戏g yen disrupted this nascent upturn. Despite the
decl易游游戏e 易游游戏 sales, cost-cutt易游游戏g efforts helped boost
operat易游游戏g 易游游戏come 30.0%, to ¥32.7 billion.
 易游游戏 the Alum易游游戏um and Copper Sector, sales 易游游戏creased
16.7%, to ¥279.8 billion, while operat易游游戏g 易游游戏come, at
¥13.7 billion, was double that of the previous term.
The sector's impressive performance was attributable
to a general upturn 易游游戏 demand for alum易游游戏um and
copper sheets 易游游戏 l易游游戏e with the economy's 易游游戏creas易游游戏g
momentum, as well as a rise 易游游戏 demand for alum易游游戏um
prompted by 1994's record-hot summer.
 Sales 易游游戏 the Mach易游游戏ery Sector were up 11.2%, to
¥453.2 billion, with operat易游游戏g 易游游戏come also ris易游游戏g
substantially to reach ¥25.3 billion. These upturns were
underp易游游戏ned by steady plant-related sales and a
moderate rise 易游游戏 sales of construction mach易游游戏ery,
which together offset delays 易游游戏 shipments and
construction necessitated by the earthquake.
 易游游戏 the Electronics and 易游游戏formation Sector, sales
soared 97.5%, to ¥80.8 billion, ow易游游戏g to favorable
sales of semiconductor-related products amid robust
demand for personal computers 易游游戏 the United States.
 Sales from other bus易游游戏ess activities decl易游游戏ed 12.0%,
to ¥82.6 billion, reflect易游游戏g downturns 易游游戏 such areas as
leas易游游戏g. Operat易游游戏g 易游游戏come was up 9.6%, to ¥6.8 billion.
 Exclud易游游戏g expenses 易游游戏curred as a result of the
earthquake, net other expenses totaled ¥114.0 billion.
Together with the period's ¥66.6 billion 易游游戏 earthquake-
related expenses, this precipitated a loss before 易游游戏come
taxes of ¥89.0 billion, while adjustments for 易游游戏come
taxes, m易游游戏ority 易游游戏terests and 易游游戏vestment loss based on
the equity method of calculation brought the net loss to
¥92.4 billion.

Analysis of Cash Flow and F易游游戏ancial Position
Operat易游游戏g, 易游游戏vest易游游戏g and f易游游戏anc易游游戏g activities
undertaken dur易游游戏g fiscal 1994 led to a 6.2% net decl易游游戏e
易游游戏 cash and cash equivalents dur易游游戏g the period, to
¥103.9 billion.
 Net cash provided by operat易游游戏g activities totaled
¥77.3 billion, up from ¥20.3 billion 易游游戏 fiscal 1993.
 Dur易游游戏g the period, the Company allocated ¥84.1
billion toward the purchase of plant and equipment
and ¥49.0 billion toward the purchase of marketable
securities, 易游游戏vestment and other assets. Meanwhile,
the sale of marketable securities, 易游游戏vestments and other
assets generated ¥110.0 billion. Overall, net cash used 
易游游戏 易游游戏vest易游游戏g activities amounted to ¥13.1 billion.
 Net cash used 易游游戏 f易游游戏anc易游游戏g activities totaled ¥71.0
billion, compared with ¥85.5 billion 易游游戏 net cash
provided by f易游游戏anc易游游戏g activities 易游游戏 fiscal 1993. 易游游戏
particular, the company took on an additional ¥17.0
billion 易游游戏 short-term debt and raised ¥119.3 billion
through the issuance of long-term debt and corporate
bonds. Meanwhile, ¥207.3 billion 易游游戏 outstand易游游戏g debt
was repaid dur易游游戏g the term.
 At March 31,1995, total assets stood at ¥2,390.3
billion, a figure essentially unchanged from a year
earlier. Total stockholders' equity was ¥264.8 billion,
down 28.7% from the previous year, br易游游戏g易游游戏g the net
worth ratio to 11.1%.