We regret the loss of life to COVID-19 and wish to extend our deepest condolences to all those who have lost a loved one. Our thoughts are with everyone who has faced difficulties as a result of this pandemic.
In the fiscal year ended March 31, 2020 (fiscal year 2019), the global economy stagnated, particularly in the manufacturing sector, due to trade friction between the United States and China since the beginning of the fiscal year, and companies showed increased caution about making investments. In the second half of the fiscal year, the business environment became extremely uncertain due to the global spread of COVID-19. As the result of stagnating growth and the accompanying decline in demand for fuels, there was a sharp decrease in crude oil prices. In the energy and materials markets, which are a major source of revenues for Yokogawa, investment in resource development projects is expected to decline.
Despite the impact of the transfer of shares in domestic subsidiaries, exchange rate fluctuations, and COVID-19 related restrictions on economic activities, sales and operating income were up in fiscal year 2019 mainly due to our strong performance in the control segment. On the other hand, the profit attributable to owners of parent decreased largely as the result of the recording of impairment losses.
Fiscal year 2020 is the final year under the Transformation 2020 mid-term business plan (TF2020), and has great importance as it will bring to a culmination three years of hard work toward its goals. However, we are now facing rapid and dramatic changes in our business environment. Even under these difficult circumstances, the Yokogawa Group must accelerate the reforms that will create opportunities and consolidate the foundation for mid- to long-term growth. Taking into account customer and societal trends and the need to prepare for a post-COVID-19 world, we will review strategies, clarify priorities, and swiftly implement action plans that will drive growth for the Group and contribute toward the realization of a sustainable society.
By continuing to grow 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