Net sales edged down by 2.0%, to ¥632,873 million ($4,921 million). Operating profit dipped 35.1%, to ¥28,734 million ($223 million) and ordinary profit declined by 30.9%, to ¥24,799 million ($193 million). Nonetheless, net income rose 11.8 %, to ¥15,220 million ($118 million). Net income per common share was ¥12.96 ($0.101), up from ¥11.59. The Company declared interim dividends per common share of ¥4.50 ($0.035), the same as at the fiscal 2002 interim.
Some signs of a mild recovery in this midterm were observed in some parts of the world, but the future course of the world economy become uncertain due in part to the falls in global stock prices. In Japan, while personal consumption continued to stagnate, production showed signs of a recovery thanks to an increase in its exports. Even though economies in Asian nations are recovering, European economies have slowed down and the future course of the U.S. economy became uncertain, and the economic climate around us increased its severity.
In these severe economic climate, we further strengthened integrated global business operations in the wake of the transition to the new Company scheme in April 2002, and continued to implement cost reduction measures further, while withdrawing from unprofitable business operations in order to improve profitability.
Concerning the performance for this midterm, we recorded sales of ¥632,873 million, an operating profit of ¥28,734 million, as well as an ordinary profit of ¥24,799 million, each of these to be lower than those booked in the previous midterm. This is partly because the Hankuk Electric Glass Co., that had been a consolidated subsidiary until the previous mid-term, was changed to a group company under the equity method in this midterm. However, net income saw an increase from the previous midterm to ¥15,220 million, thanks to an improvement in extraordinary profit/loss over the corresponding period of last year.
We shall make a midterm dividend payment of ¥4.5 per share for this midterm, in accordance with the "Allocation of Profits" in the Management Policy hereinafter.
In order to enhance integrated global operation of its flat glass line, the Company acquired 1,948,159 shares of common stock and 26,723 units of convertible bonds in Glaverbel S.A. for 380 million euro (approx. ¥44,000 million) through public tender offer effective May, 2002. In addition, in August 2002, the Company acquired another 7.0 percent interest in the same company from its shareholders under the same conditions of the public tender offer. As a result of this acquisition, the Company's share of voting rights in Glaverbel S.A. has reached 98.98%.
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