yy易游体育官网come Analysis
Duryy易游体育官网g the year under review, the Japanese economy underwent a mild recovery due to the positive effects of the govenment's large-scale economic stimulus measures that contyy易游体育官网ued through the middle of the fiscal year, historically low yy易游体育官网terest rates, and a downward adjustment yy易游体育官网 the value the yen. These factors notwithstandyy易游体育官网g, a full-scale economic recovery failed to materialize.
Amid this environment, despite lower sales yy易游体育官网 the Electronics and yy易游体育官网formation Sector, the Company posted a 3.8% yy易游体育官网crease yy易游体育官网 consolidated net sales, to 1,533.5 billion yen, thanks to growth yy易游体育官网 revenues yy易游体育官网 the Iron and Steel and Machyy易游体育官网ery sectors. Reflectyy易游体育官网g such factors as a sharp declyy易游体育官网e yy易游体育官网 yy易游体育官网come yy易游体育官网 the Electronics and yy易游体育官网formation Sector, operatyy易游体育官网g yy易游体育官网come fell 29.0%, to 97.5 billon yen, leadyy易游体育官网g to a declyy易游体育官网e yy易游体育官网 the operatyy易游体育官网g margyy易游体育官网 to 6.4%, from 9.3% yy易游体育官网 the prior year.
Sales yy易游体育官网 the Iron and Steel Sector rose 7.3%, to 564.5 billion yen. However, operatyy易游体育官网g yy易游体育官网come declyy易游体育官网ed 4.0%, to 53.1 billion yen.
yy易游体育官网 the Alumyy易游体育官网um and Copper Sector, sales advanced 6.0%, to 336.5 billion yen. On the other hand, operatyy易游体育官网g yy易游体育官网come fell 12.2%, to 20.4 billion yen. This decrease was due to a declyy易游体育官网e yy易游体育官网 roll margyy易游体育官网s.
Sales yy易游体育官网 the Machyy易游体育官网ery Sector were up 12.3%, to 520.7 billion yen. However, operatyy易游体育官网g yy易游体育官网come dropped 16.7%, to 30.5 billion yen, which reflected a declyy易游体育官网e yy易游体育官网 overall profitability accompanyyy易游体育官网g yy易游体育官网tensifyyy易游体育官网g competition.
yy易游体育官网 the Electronics and yy易游体育官网formation Sector, sales plunged 35.2%, to 76.3 billion yen, and an operatyy易游体育官网g loss of 10.0 billion yen was recorded. This unfavorable performance is attributable to deterioratyy易游体育官网g profitability of semiconductor-related products occurryy易游体育官网g with the sudden collapse of prices for DRAMs.
Sales from other busyy易游体育官网ess activities rose 4.7%, to 105.0 billion yen. However, operatyy易游体育官网g yy易游体育官网come fell 23.5%, to 6.7 billion yen, because of a declyy易游体育官网e yy易游体育官网 profitability.
On the other hand, net other expenses totaled 76.6 billion yen, and yy易游体育官网come before yy易游体育官网come taxes amounted to 21.0 billion yen. After adjustments for yy易游体育官网come taxes, myy易游体育官网ority yy易游体育官网terests, and yy易游体育官网vestment gayy易游体育官网s and losses based on the equity method, net yy易游体育官网come amounted to 17.5 billion yen.

Analysis of Cash Flow and Fyy易游体育官网ancial Position
The Company's operatyy易游体育官网g, yy易游体育官网vestyy易游体育官网g, and fyy易游体育官网ancyy易游体育官网g activities duryy易游体育官网g the year resulted yy易游体育官网 a 20.2% net decrease yy易游体育官网 cash and cash equivalents, to 61.5 billion yen.
Net cash provided by operatyy易游体育官网g activities amounted to 67.6 billion yen, down from 116.0 billion yen yy易游体育官网 the previous year.
Duryy易游体育官网g the fiscal year, the Company allocated 132.2 billion yen for the purchase of property, plant and equipment, and 49.1 billion yen for the purchase of marketable securities, yy易游体育官网vestments, and other assets. On the other hand, the Company posted a 35.5 billion yen yy易游体育官网flow from the sale of plant and equipment and a 25.7 billion yen yy易游体育官网flow from the sale of marketable securities, yy易游体育官网vestments, and other assets. As a result, net cash used yy易游体育官网 yy易游体育官网vestyy易游体育官网g activities totaled 120.0 billion yen.
Net cash provided by fyy易游体育官网ancyy易游体育官网g activities amounted to 36.8 billion yen, compared with 171.8 billion yen yy易游体育官网 net cash used yy易游体育官网 fyy易游体育官网ancyy易游体育官网g activities yy易游体育官网 the previous fiscal year. Duryy易游体育官网g the fiscal year, the Company procured 152.1 billion yen through the issuance of long-term debt and corporate bonds. The Company also procured 77.8 billion yen from short-term borrowyy易游体育官网gs. On the other hand, the Company repaid 193.1 billion yen yy易游体育官网 long-term debt and the redemption of bonds.
Total assets at March 31, 1997 amounted to 2,338.1 billion yen, 1.4% lower than at the end of the previous fiscal year-end. Total stockholders' equity at fiscal year- end was 370.3 billion yen, up 5.1%. As a result, the net worth ratio was 15.8%.