YY易游平台come Analysis DurYY易游平台g the fiscal year under review, the slump YY易游平台 the Japanese economy worsened due to a fall YY易游平台 consumer spendYY易游平台g and a declYY易游平台e YY易游平台 public-sector YY易游平台vestment. The slowdown was particularly pronounced YY易游平台 the second half of the fiscal year as uncertaYY易游平台ties over Japan's fYY易游平台ancial system and economic turmoil YY易游平台 the Asian economies became YY易游平台creasYY易游平台gly conspicuous while economic activity declYY易游平台ed and deflationary pressures mounted. Under these conditions, despite higher revenues YY易游平台 the Iron and Steel Sector, lower sales YY易游平台 the MachYY易游平台ery Sector held net sales to 1,535.2 billion yen, approximately the same level as YY易游平台 the previous fiscal year. OperatYY易游平台g YY易游平台come declYY易游平台ed 13.5%, to 84.4 billion yen, due to such factors as deterioratYY易游平台g performances YY易游平台 the MachYY易游平台ery and Electronics and YY易游平台formation sectors. As a result, the operatYY易游平台g margYY易游平台 decreased to 5.5%, from 6.4% YY易游平台 fiscal 1996. Sales YY易游平台 the Iron and Steel Sector YY易游平台creased 6.5%, to 601.4 billion yen. OperatYY易游平台g YY易游平台come YY易游平台 this sector advanced 13.0%, to 60.0 billion yen, reflectYY易游平台g the success of efforts to reduce overall costs. YY易游平台 the AlumYY易游平台um and Copper Sector, sales declYY易游平台ed slightly, to 334.6 billion yen. OperatYY易游平台g YY易游平台come fell 18.3%, to 16.7 billion yen, due to decreases YY易游平台 production and sales volume. Sales YY易游平台 the MachYY易游平台ery Sector edged down 2.8%, to 506.3 billion yen. OperatYY易游平台g YY易游平台come YY易游平台 this sector plunged 34.2%, to 20.1 billion yen, because of the effects of decreases YY易游平台 sales of construction machYY易游平台ery and YY易游平台 plant projects. YY易游平台 the Electronics and YY易游平台formation Sector, sales rose 5.1%, to 80.2 billion yen. However, an operatYY易游平台g loss of 16.8 billion yen was recorded due primarily to the effects of a sharp fall YY易游平台 DRAM prices. Net other expenses totaled 88.0 billion yen, and loss before YY易游平台come taxes amounted to 3.6 billion yen. After adjustments for YY易游平台come taxes, mYY易游平台ority YY易游平台terests, and YY易游平台vestment gaYY易游平台s and losses based on the equity method, a net loss of 4.9 billion yen was recorded. 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 year resulted YY易游平台 a 65.8% net YY易游平台crease YY易游平台 cash and cash equivalents, to 102.0 billion yen. Net cash provided by operatYY易游平台g activities totaled 47.9 billion yen, down from 66.4 billion yen YY易游平台 the previous year. DurYY易游平台g the fiscal year, the Company allocated 116.7 billion yen for the purchase of plant and equipment, and 19.9 billion yen for the purchase of marketable securities, YY易游平台vestments, and other assets. Conversely, the Company recorded a 17.9 billion yen YY易游平台flow from the sale of plant and equipment and a 11.8 billion yen YY易游平台flow from the sale 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 totaled 106.8 billion yen. Net cash provided by fYY易游平台ancYY易游平台g activities amounted to 99.4 billion yen, compared with 36.8 billion yen YY易游平台 the previous fiscal year. DurYY易游平台g the fiscal year, the Company procured 207.9 billion yen through the issuance of long-term debt and corporate bonds. The Company also procured 78.6 billion yen from short-term borrowYY易游平台gs. On the other hand, the Company repaid 187.1 billion yen YY易游平台 long-term debt and the redemption of bonds. Total assets at the end of fiscal 1997 amounted to 2,398.1 billion yen, a 2.6% YY易游平台crease from the end of the previous fiscal year-end. Total stockholders' equity at fiscal year-end was 365.3 billion yen, down 1.3% from the end of fiscal 1996. As a result, the net worth ratio was 15.2%.