Quarterly Survey of Overseas Subsidiaries

1. Turnover Inside/Outside Japan and Domestic Sales/Local Sales Overseas

Combined sales by Parent companies in Japan decreased by 4.6% from the same quarter a year ago, to 42.3677 trillion yen. Sales fell in eleven industries, with Transport Machinery contributing greatly to overall decline.

On the other hand, combined sales by Overseas subsidiaries increased by 5.6% to 9.0241 trillion yen. North America contributed greatly to the overall growth, but ASEAN4 and NIES3 posted sales declines. Sales growth was recorded in ten industries including Electrical Machinery and Transport Machinery.

The DI for the outlook of sales by Parent companies for the 1998 April-June quarter fell by 15.7 points (-2.6 to -18.3) from the preceding quarter, with declines anticipated in 10 industries including Transport Machinery. The corresponding DI for Overseas subsidiaries worldwide edged up by 0.3 points (from 26.8 to 27.1). By area, North America recorded a sharp fall of 14.5 points in the DI from the preceding quarter, though it is still a plus point.

Local sales by Overseas subsidiaries worldwide (Note 2) increased by 7.6% from the same quarter a year ago to 5.3581 trillion yen. Those in ASEAN4 and NIES3 posted sales decline.

The DI for the outlook of local sales by Overseas subsidiaries for the 1998 April-June quarter rose by 1.8 points (22.2 to 24.0) from the preceding quarter. The DI fell sharply by 14.9 points (42.0 to 27.1) in North America, but rose in all other areas including Asia, where the increase may be taken as a reaction to the dip in the January-March quarter.

Overseas production ratio (Note 3) stood at 21.3%, up 2.0 points from the preceding quarter.