While net sales were down, operating income increased year-on-year in the second quarter from July to September, in the digital products, electronic devices and home appliances segment. The social infrastructure segment continued a solid performance. And all four segments secured profits.In the Board of Directors Meeting today, we have made a de-official decision which was already announced to you that the interim dividend will be JPY4 per share. Page 4, shows the first six month result comparing to first half of FY10 as well as the comparison to the plan Page 5, shows the first six month results by segment, showing you the net sales as well as operating income. As you can see, in both net sales and operating income, home appliances segment increased. However, in the other three segments fortunately, sales and operating income declined especially we had the major negative figures of our digital products and electronic devices. Now, please turn to page 23, which shows the second quarter business results. As you can see on the page 23, net sales were JPY1,586.4 billion down JPY43 billion and operating income was JPY76.1 billion, up JPY5.1 billion. Now page 24, shows the second quarter results by segment. As for net sales, digital products and electronic devices declined whereas the social infrastructure and home appliances increased. Turning to operating income, social infrastructure declined slightly. However in the remaining three segments we saw increases in operating income. Going back to page 6, this page shows the first six month results in comparison to past three years, including sales operating income and net income numbers. Page 7, shows the change of the operating income from the first half of 2010. So, first half FY2010, operating income was JPY104.8 billion, this number declined by JPY24.6 billion to JPY80.2 billion. The market impact including price erosion and structural change was JPY510 billion. On the positive side, there was a cost reduction as well as prior notices of JPY360 billion. In addition, the volume increased including the use of advanced process technology was JPY130.4 billion.
Based on those three factors, the negative impact was JPY19.6 billion. This was mostly offset by the positive factor that is fixed cost reduction of JPY21 billion. However, there was a negative factor of currency exchange as well as earthquake impact, JPY16 billion and JPY10 billion respectively. We could not offset those two negative factors.Page 8, shows digital products, net sales declined by 8%. There was an impact of strong yen and sluggish sales in the PC business in Europe and United States. In July, analog broadcasting was stopped in Japan. And because of this demand for the LCD TVs came down and the prices became lower. Also, the sales of the retail information systems and office equipment business came down. Operating income was higher in PCs. But in LCD TVs, after July, when the transition to digital terrestrial broadcasting was done in Japan, the demand for LCD TV declined and the prices declined. As a result, the TV business as a whole decreased because of the deficit overseas, all our segment income came down. Now turning to PC business, sales were sluggish especially in Europe and in United States, reflecting the weak demand due to economic conditions. Operating income reflected higher sales in Japan. And there are close reductions and effect of the lower parts and material costs because of the strong yen. So, as our PC business, the operating income increased. Now turning to electronic devices, I would like to use the following pages to give you the semiconductor as well as the LCD business numbers. First about the semiconductor business, net sales declined by 13%, NAND Flash memory demand was firm. But sales came down due to the strong yen. System LSI performance was undercut by lower demand. And we could not fully recover from the impact of the earthquake in the first quarter. Read the rest of this transcript for free on seekingalpha.com