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Our net sales forecast for the first half of the fiscal year ending March 2011 remains unchanged at 750 billion yen. We plan to record a 5 billion yen exchange currency loss offset by a 5 billion yen gain from an improvement in domestic and overseas sales volume and mixture.
However, as explained at our review of business performance for first three months of the fiscal 2011, we have achieved 90% of our operating income target in our initial first half plan, and both ordinary income and net income have also exceeded our first half target. Therefore, we have made an upward revision to our forecast for operating income, ordinary income and income before income taxes and minority interests by 10 billion yen each, and net income for the current term by 9 billion yen.
An explanation will be provided later regarding the factors for the change in operating income.
Ordinary income target will be 3.3 billion yen. This takes into account a 2 billion yen gain on valuation of derivatives, 2 billion yen in foreign exchange losses, a 2 billion yen equity in earnings of affiliates, and a 4 billion yen loss from financial revenue and expenditure and other losses.
For income before income taxes and minority interests, no additional large extraordinary gain or loss is expected from our initial target, so our outlook will be 29 billion yen.
Net income for the first half is expected to be 23 billion yen because, 1 billion yen has been added to the income tax expense against the initial plan, totaling some 6 billion yen, due to better sales performance by our US subsidiaries.
As for our full year plan, many factors remain unclear and therefore, we will keep it unchanged for the time being. For sales, the strong yen is expected to result in an exchange loss of 19 billion yen, while an improvement in domestic and international sales volume and mixture should bring in 19 billion yen.
Our exchange rate assumptions following August 2010 used for FHI include 87 yen to the US dollar, 110 yen to the Euro and 83 yen to the Canadian dollar. Full-year assumptions have been changed to 89 yen to the US dollar, 113 yen to the Euro and 85 yen to the Canadian dollar.�