In the fiscal year ended March 31, 2019 (fiscal year 2018), there were continued signs of weakness in certain sectors of the global economy due to uncertainty over trade disputes and fluctuating exchange rates primarily in emerging countries. Meanwhile, in the Yokogawa Group's primary energy and material-related markets, investment in resource development is expected to recover thanks to changes in crude oil prices and shifts in supply and demand.
While net sales declined in fiscal year 2018 due to appreciation of the yen against emerging country currencies and the transfer of shares of a domestic subsidiary engaged in the aviation and other businesses segment, operating income was up. This can be mainly attributed to reductions in selling, general and administrative expenses and an increase in the profit attributable to owners of parent due to the recording of an impairment loss for goodwill and other items.
The Group has positioned the period leading up to the end of fiscal year 2020 as a time for creating opportunities and establishing a strong foundation for growth, and is executing the Transformation 2020 mid-term business plan (TF2020) that calls for the transformation of existing businesses, the creation of new businesses and transformation of business models, and the improvement of productivity through Group-wide optimization. As a basis for these transformations, we are focusing on achieving a digital transformation that will improve our own productivity as well as that of our customers by making full use of digital technologies.
In April, Takashi Nishijima was appointed chairman and Hitoshi Nara assumed the positions of president and chief executive officer. Under this new leadership, we will continue striving to achieve the TF2020 targets and set the company on a secure path to continued growth.
By continuing to expand our business and enhance our corporate value, we aim to fulfill the expectations of all our shareholders. In these endeavors, we request your continued support and understanding.
President and CEO