May 9 - In the period under review, the Japanese economy experienced positive trends including improved corporate profits and a moderate recovery in consumer spending, but these trends slowed down in the second half of the period and the economy started to decelerate.
In the Japanese food industry, the business environment remained severe as a result of the high prices of raw materials, rising concerns about food safety, and other factors.
Internationally, the Asian economy continued its expansion, but the U.S. economy slowed down, and the economic recovery in Europe also eased off at the end of the period.
Within this environment, based on its medium- to long-term management plan “A-dvance 10”, the Ajinomoto Group (“Ajinomoto” or “the Group”) focused its efforts on pursuing reforms on all levels throughout the entire Group, and extensively reducing costs and strengthening the business structure, aiming to be successful in the increasingly severe operating environment and to overcome competitive pressures. However, although consolidated net sales for the fiscal year ended March 31, 2008 increased 5.0% (¥58.0 billion) year on year to ¥1,216.5 billion, operating income decreased 5.1% (¥3.2 billion) to ¥60.5 billion; ordinary income decreased 9.5% (¥5.8 billion) to ¥55.7 billion; and consolidated net income decreased 6.6% (¥1.9 billion) to ¥28.2 billion.
