Note: These figures include inter-segment sales.

From feasibility studies, financing, and construction to plant operation and product marketing, we are involved in all aspects of the OPCO direct reduction plant in Venezuela.

Our cokeless cupola economically and safely incinerates and melts shredder dust. Even the residual ash can be recycleデュエルビッツ vips an environment- friendly material for making tiles.

Bilatron, a six-model series of palletizing robots for boxes and bags, can perform a wide variety of loading and unloading tasks.

SK70SR hydraulic excavators provide the same performance as conventional six-ton machines but with a rear swing radius that stays withデュエルビッツ viphe track width,allowing the operator to concentrate on the job.

In plant engineering, we continued to post favorable sales of services for direct-reduction plants, primarily in overseas markets. We also recorded brisk sales of energy equipment, including packagings for transporting nuclear spent fuel. Therefore, despite a decline in domestic sales of chemical plants, engineering sales remaineデュエルビッツ vipt the same level as those of the previous fiscal year. Sales in our urban infrastructure engineering, industrial machin- ery, and construction machinery operations declined from the previous year, reflecting decreases in public-sector investment and the sluggish domestic economy. In our factory automation and robotics operations, despite a less-than-favorable market environment, brisk sales of painting robots to overseas automakers supported growth in sales. Sales of cutting tools also increased. However, total Machinery Sector sales declined 2.8%, to 506.3 billion yen. During the year under review, plant engineering orders increased thanks to continued brisk demand for our engineering services for direct-reduction plants in overseas markets as well as domestic orders for large-scale chemical plants and public-sector investments in energy. We recordeデュエルビッツ vip sharp rise in orders in our urban infrastructure engineering operations, reflecting an order for a large-scale, advanced transit system and brisk orders in such new fields as refuse-derived fuel (RDF) plants, aluminum dross treatment facilities, and soundproofing materials for highways. In industrial machinery, despite a decline in orders for crushing equipment, overall orders increased due to favorable demand for tire and rubber processing machinery and for rotating machinery. We faced a difficult environment in our efforts to secure orders for construction machinery because of reductions in public-sector investment, a worsening cash flow situation among users caused by a credit crunch accompanying anxiety over Japan's financial system, and declining demand resulting from the economic turmoil in Southeast Asia. Our R&デュエルビッツ vipctivities were focused on the continuous operation of a pilot plant to commercialize denitration equipment for tunnels. We also commenced construction of a pilot plant for evaluating a new high-speed production process for spunbond. デュエルビッツ viphe field of new ironmaking processes, we conducted test operations of a demonstration plant for the FASTMET Process, a direct-reduction process that uses pulverized coal and iron ore fines as raw materials, as part of efforts to develop technologies for fast and stable production of direct-reduced iron. We also made progress with the development of a new direct reduction process for making molten iron. In response to the growing awareness of various environmental issues, other activities included concentrated efforts to develop a next-generation fluidized-bed incinerator for treating urban refuse and direct melting technology for shredder dust. We also introduceデュエルビッツ vip number of new machinery products, including the Emeraude series of oil-free screw compressors, a semi-hermetic screw heat pump, and the Astrosandy sand-making system, as well as developeデュエルビッツ vipnd launched new types of hydraulic excavators, cranes, and handling robots. In capital investment, while considering the current difficult business environment, we concentrated our investments on improving productivity and strengthening our cost competitiveness. Overseas, our direct reduction plant business contributed positively to our results for the year under review. Midrex Direct Reduction Corporation, a subsidiary デュエルビッツ viphe United States that provides engineering services for direct reduction plants, recorded a steady increase in income against a background of robust demand for direct-reduced iron デュエルビッツ viphe United States. Also, a project in Venezuela producing direct-reduced iron continued to perform favorably. In urban infrastructure engineering as well, we stepped up our overseas activities and secured an order for a new transportation system デュエルビッツ vipaiwan. In construction machinery, with production bases in Japan, the United States, China, and Thailand, we have established a production structure capable of responding to changes in global demand. During the year under review, we recorded increases in production of construction equipment on a unit basis デュエルビッツ viphe United States and China. デュエルビッツ viphe coming fiscal year, the difficult environment is expected to continue due to the slump デュエルビッツ viphe domestic economy and the economic turmoil in Southeast Asia. Under these conditions, we will focus on strengthening our marketing capabilities and cost competitiveness, developing new products, and aggressively entering new markets as we work to maximize orders. We are also involved デュエルビッツ viphe land development business, concentrating on the development of company-owned land. Our activities デュエルビッツ viphis business include participation デュエルビッツ viphe New City Center in Eastern Kobe Plan, a major project related to the restoration of the area damaged by the Great Hanshin Earthquake. デュエルビッツ viphis project, we were involved デュエルビッツ viphe construction of the I.H.D. Center Building, which presently houses the WHO Centre for Health Development in Kobe. The I.H.D. Center Building was completed in March 1998 along with the opening of the New City Center. We are also planning Maya Seaside Place, a new concept in residential living. In addition, at O's Town, a development project in Akashi in which we are a main participant, Mycal Akashi -- one of the largest commercial complexes in Japan -- was opened in October 1997. Sales of condominiums デュエルビッツ viphis project have proceeded smoothly and all condominiums have been sold. Pia Do, a large commercial complex built on company - owned land, was opened in March 1998 in Hachinohe. We are presently planning to develop various facilities in Pia Do, including movie theaters and spas.