Omron's FY2009 Shareholder Report.pdf

In the first half of fiscal year 2009, Omron Corporation's sales and earnings plummeted due to the global economic downturn that began in the second half of the previous fiscal year. However, a rebound started in the second half as conviction grew that the worst was over, driven by moderate recovery momentum in capital investment in manufacturing in Japan and robustness in emerging economies led by China. The company achieved a V-shaped recovery by adopting an emergency profitability plan under the slogan "Working Together as One." Despite the uncertain business environment, Omron aims to grow sales and earnings on the back of moderate recovery in the Japanese economy and completion of its program of structural reforms.

Omron's net sales for fiscal 2009 were ¥524,694 million, a decrease of 16.3% compared with the previous fiscal year. Operating income was ¥13,074 million, an increase of 144.9% compared with the previous fiscal year, due to implementing profitability initiatives under the fiscal 2009 policies. Income before income taxes was ¥10,195 million, and net income attributable to shareholders was ¥3,518 million.

The company projects a solid economic environment in China and other newly industrialized countries for fiscal 2010, but the outlook in major developed countries is expected to remain uncertain. In Japan, rising exports are seen as a factor supporting the economy against the backdrop of the gradual recovery of overseas economies, but a clear pickup in corporate capital investment and employment is expected to take time. Overseas, growth is expected to continue in China and other newly industrialized countries with fast-growing economies in Asia, with exports continuing to increase. In the United States and Europe, however, the recovery is forecast to be limited due to ongoing adjustments in employment and capital investment as the effects of economic stimulus measures decrease.