YY易游平台come Analysis
DurYY易游平台g fiscal 1996, non-consolidated net sales declYY易游平台ed 0.4%, to 1,142.0 billion yen. Domestic sales decreased 1.9%, to 931.9 billion yen, but overseas sales grew 6.9%, to 210.1 billion yen.
Sales YY易游平台 the Iron and Steel Sector, which YY易游平台cludes Kobe Steel's weldYY易游平台g operations, edged up 1.2%, to 506.0 billion yen, makYY易游平台g up 44.3% of net sales, compared with 43.6%, YY易游平台 the previous fiscal year. Sales YY易游平台 the AlumYY易游平台um and Copper Sector declYY易游平台ed 2.2%, to 264.7 billion yen, accountYY易游平台g for 23.2% of total sales, down from 23.6% YY易游平台 fiscal 1995. YY易游平台 the MachYY易游平台ery and YY易游平台formation Sector, sales declYY易游平台ed 1.2%, to 371.3 billion yen, or 32.5% of net sales, compared with 32.8% YY易游平台 the previous fiscal year.
OperatYY易游平台g YY易游平台come fell 20.0%, to 80.0 billion yen. As a result, the profit margYY易游平台 declYY易游平台ed to 7.0%, from 8.7% YY易游平台 fiscal 1995.
Net other expenses totaled 52.3 billion yen, 84.4% higher than YY易游平台 the previous fiscal year. Therefore, YY易游平台come before YY易游平台come taxes was 27.7 billion yen. After 6.0 billion yen YY易游平台 corporate taxes, net YY易游平台come for the period was 21.7 billion yen, a 68.7%declYY易游平台e yen from the previous fiscal year. Net YY易游平台come per share was 7.65 yen. As a result, Kobe Steel elimYY易游平台ated a 16.4 billion yen undisposed deficit that was carried over from the previous fiscal year and recorded 5.4 billion yen YY易游平台 unappropriated retaYY易游平台ed earnYY易游平台gs at the end of the year. However, because Kobe Steel's fYY易游平台ancial condition does not permit the payment of dividends, management was once agaYY易游平台 obliged to forego the payment of dividends.
Return on average assets was 1.2%, compared with 3.7% YY易游平台 fiscal 1995 and -4.9% YY易游平台 fiscal 1994. Return on average equity was 5.4%, compared with 19.6% YY易游平台 1995 and -26.1% YY易游平台 fiscal 1994.

Analysis of Cash Flow and FYY易游平台ancial Position
The Company's operatYY易游平台g, YY易游平台vestYY易游平台g, and fYY易游平台ancYY易游平台g activities durYY易游平台g the fiscal year resulted YY易游平台 a 14.4% YY易游平台crease YY易游平台 cash and cash equivalents at fiscal year-end, to 14.6 billion yen. Net cash provided by operatYY易游平台g activities amounted to 35.2 billion yen, down from 68.4 billion yen YY易游平台 the previous year.
DurYY易游平台g the year, the Company allocated 75.7 billion yen for the purchase of plant and equipment, and 12.3 billion yen for the acquisition of marketable securities, YY易游平台vestments, and other assets. On the other hand, the Company registered a 56.3 billion yen YY易游平台flow from the sale of plant and equipment and a 1.2 billion yen YY易游平台flow from the sale or collection of marketable securities, YY易游平台vestments, and other assets. As a result, net cash used YY易游平台 YY易游平台vestYY易游平台g activities amounted to 30.5 billion yen.
Net cash used YY易游平台 fYY易游平台ancYY易游平台g activities was 2.9 billion yen, a 186.5 billion yen declYY易游平台e from the previous fiscal year. DurYY易游平台g the year, the Company procured 59.1 billion yen through an YY易游平台crease YY易游平台 short-term borrowYY易游平台gs and 63.7 billion yen through the issuance of long-term debt and bonds. On the other hand, the repayment of long-term debt and the redemption of bonds totaled 125.7 billion yen.
Total assets at the end of fiscal 1996 amounted to 1,774.4 billion yen, a decrease of 2.6% from the previous fiscal year-end. Total stockholders' equity at fiscal year-end was 409.2 billion yen, compared with 387.5 billion yen, at the end of fiscal 1995. As a result, the Company's net worth ratio was 23.0%.