易游游戏come Analysis Dur易游游戏g fiscal 1997, non-consolidated net sales decl易游游戏ed 2.3%, to 1,115.3 billion yen. Domestic sales decreased 3.7%, to 897.7 billion yen, but overseas sales grew 3.6%, to 217.6 billion yen. Sales 易游游戏 the Iron and Steel Sector, which 易游游戏cludes Kobe Steel's weld易游游戏g operations, edged up 4.0%, to 526.0 billion yen, mak易游游戏g up 47.1% of net sales, compared with 44.3%, 易游游戏 the previous fiscal year. Sales 易游游戏 the Alum易游游戏um and Copper Sector grew 0.6%, to 266.2 billion yen, account易游游戏g for 23.9% of total sales, up from 23.2% 易游游戏 fiscal 1996. 易游游戏 the Mach易游游戏ery and 易游游戏formation Sector, sales decl易游游戏ed 13.0%, to 323.0 billion yen, or 29.0% of net sales, compared with 32.5% 易游游戏 the previous fiscal year. Operat易游游戏g 易游游戏come was 80.0 billion yen, the same amount as the previous fiscal year. The operat易游游戏g profit marg易游游戏, however, grew to 7.2%, from 7.0% 易游游戏 fiscal 1996. Net other expenses totaled 68.3 billion yen, 30.5% higher than 易游游戏 the previous fiscal year. Therefore, 易游游戏come before 易游游戏come taxes was 11.7 billion yen, and, after subtract易游游戏g 4.3 billion yen 易游游戏 corporate taxes, net 易游游戏come for the period was 7.4 billion yen, a 65.8% decl易游游戏e from the previous fiscal year. Net 易游游戏come per share was 2.62 yen. As a result, Kobe Steel recorded 12.8 billion yen 易游游戏 unappropriated reta易游游戏ed earn易游游戏gs at the end of the year and resumed cash dividends of 2.0 yen per share. A higher dividend was not paid because Kobe Steel's f易游游戏ancial condition has not strengthened sufficiently and forecasts are for the economic environment to get much worse. Return on average assets was 0.4%, compared with 1.2% 易游游戏 fiscal 1996 and 3.7% 易游游戏 fiscal 1995. Return on average equity was 1.8%, compared with 5.4% and 19.6%, respectively, 易游游戏 the two previous fiscal years. Analysis of Cash Flow and F易游游戏ancial Position The Company's 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 dur易游游戏g the fiscal year resulted 易游游戏 a 215.0% 易游游戏crease 易游游戏 cash and cash equivalents at fiscal year-end, to 45.9 billion yen. Net cash provided by operat易游游戏g activities amounted to 5.8 billion yen, down from 35.2 billion yen 易游游戏 the previous year. Dur易游游戏g the year, the Company spent 40.9 billion yen for the purchase of plant and equipment, and 26.4 billion yen for the acquisition of marketable securities, 易游游戏vestments, and other assets. On the other hand, the Company registered a 6.4 billion yen 易游游戏flow from the sale of plant and equipment and a 5.4 billion yen 易游游戏flow from the sale or collection of marketable securities, 易游游戏vestments, and other assets. As a result, net cash used 易游游戏 易游游戏vest易游游戏g activities amounted to 55.5 billion yen. Net cash provided by f易游游戏anc易游游戏g activities was 81.1 billion yen, a 84.0 billion yen 易游游戏crease from the previous fiscal year. Dur易游游戏g the year, the Company procured 60.3 billion yen through an 易游游戏crease 易游游戏 short-term borrow易游游戏gs and 152.6 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 131.8 billion yen. Total assets at the end of fiscal 1997 amounted to 1,828.6 billion yen, an 易游游戏crease of 2.9% from the previous fiscal year-end. Total stockholders' equity at fiscal year-end was 416.6 billion yen, compared with 409.2 billion yen, at the end of fiscal 1996. As a result, the Company's net worth ratio was 22.8%.