Net sales in the Healthcare Business decreased to ¥78.6 billion.
Net sales overseas increased by 17%, amid higher sales of digital equipment, particularly in the U.S., and also ongoing growth in sales of film in China. This has contributed to steadily increasing profitability. Nevertheless, in FY2014 the Healthcare Business faced an uphill battle in Japan. The section of the bar chart pertaining to net sales in Japan labeled glocal procurementsh represents sales of purchased goods that are not the Company's own products. The overall decrease in net sales in the Healthcare Business is largely attributable to lower sales of these glocal procurements,h partially due to waning business confidence in the domestic medical field of diagnostic imaging systems.
Local procurements aside, however, operating income has also been adversely affected by results of domestic sales of digital systems and services that unfortunately have also failed to materialize according to plan, along with a ¥2.6 billion increase in SG&A expenses, as shown on the operating income analysis graph. Two factors account for the decrease in operating income, one being the increase in SG&A expenses that was partially attributable to an increase over FY2013 of around ¥1.5 billion in expenses for developing and launching sales of new products for the diagnostic ultrasound systems business, which we have been strengthening since last year, and the other being that sales of products procured in Japan failed to adequately cover fixed costs. Despite this, efforts in gearing up for the launch of sales heading into FY2015 are likely to gradually deliver positive results. The fourth quarter brought a fairly robust increase in sales of diagnostic ultrasound systems, along with gains in DR system sales, thereby helping to ensure the possibility of a shift to increasing sales and profit in FY2015.
Net sales overseas increased by 17%, amid higher sales of digital equipment, particularly in the U.S., and also ongoing growth in sales of film in China. This has contributed to steadily increasing profitability. Nevertheless, in FY2014 the Healthcare Business faced an uphill battle in Japan. The section of the bar chart pertaining to net sales in Japan labeled glocal procurementsh represents sales of purchased goods that are not the Company's own products. The overall decrease in net sales in the Healthcare Business is largely attributable to lower sales of these glocal procurements,h partially due to waning business confidence in the domestic medical field of diagnostic imaging systems.
Local procurements aside, however, operating income has also been adversely affected by results of domestic sales of digital systems and services that unfortunately have also failed to materialize according to plan, along with a ¥2.6 billion increase in SG&A expenses, as shown on the operating income analysis graph. Two factors account for the decrease in operating income, one being the increase in SG&A expenses that was partially attributable to an increase over FY2013 of around ¥1.5 billion in expenses for developing and launching sales of new products for the diagnostic ultrasound systems business, which we have been strengthening since last year, and the other being that sales of products procured in Japan failed to adequately cover fixed costs. Despite this, efforts in gearing up for the launch of sales heading into FY2015 are likely to gradually deliver positive results. The fourth quarter brought a fairly robust increase in sales of diagnostic ultrasound systems, along with gains in DR system sales, thereby helping to ensure the possibility of a shift to increasing sales and profit in FY2015.