The past year was characterized by
reasonable growth. While trends within
the various sectors of the consumer
product division were mixed, net sales
increased an average of 5 percent,
following a relatively strong economy
and increased consumer demand. Under
the circumstances, the division's
operating income increased approximately
2 percent, despite manufacturing cost
pressures related to rising energy
and commodity prices. The average
operating income of the consumer product
industry decreased as much as 1 percent
during the past year.
The consumer product division continued
to focus on working capital by increasing
the average working capital ratio,
along with a slight increase in inventory
turnover and a slight decrease in
accounts receivable turnover. We will
continue the effort to realize higher
efficiency and financial stability
of the division. It is projected that
the division's sales continue to grow
an average of 3 to 5 percent per annum
along with an estimated 2 percent
increase in net income in the next
five years.
