Net sales for the first half of the fiscal year ending March 2010 decreased by 108.7 billion yen. Major factors behind the decrease included a decrease of 65.8 billion yen due to the deterioration of sales volume and mix, a loss on currency exchange of 37.7 billion yen due to the appreciation of the yen against the US dollar, euro and Canadian dollar, as well as a drop in sales at our three internal companies and other segments totaling 5.2 billion yen.

Operating income fell 29.8 billion yen year-on-year, resulting in an operating loss of 11.4 billion yen. This decrease came as a result of a deterioration of sales volume and mix and the loss on currency exchange according to the appreciation of the yen which were too large to offset through cost reduction decrease of SG&A and R&D expenses (this will be explained in further detail later on).

Ordinary income also decreased by 30 billion yen, generating a loss of 11.8 billion yen on a year-on-year basis (further details will follow).

Net income fell 26.1 billion yen, resulting in a net loss of 21.7 billion yen, due primarily to a domestic dealer-related impairment loss of 3.2 billion yen.