BACK NEXT
 
 
We revised our consolidated operating plan, with an upward revision to each income category.
Net sales were adjusted downward to 20.0 billion yen (down 1.1%) since we lowered the projected sales volume and revised the estimated yen rate for the second fiscal half on the assumption that the yen will appreciate further. Anticipating healthier sales mixes in the domestic and North American markets, we made upward revisions to our forecast by 15.0 billion yen (22.4%) for operating income, 18.0 billion yen (28.6%) for ordinary income, 18.0 billion yen (30.0%) for income before taxes and minority interests, and 19.0 billion yen (39.6%) for net income.
Net sales are expected to hit an all-time high of 1,840.0 billion yen, a year-on-year increase of 322.9 billion yen (21.3%). This surge will come from a gain of 316.6 billion yen resulting from a better sales mix variance due to increases in new car model sales volumes in the North American and other markets as well as a gain of 10.6 billion yen from increased sales at the three internal companies. The gain will come despite an exchange loss of 4.3 billion yen due to the appreciation of the yen against the euro and other currencies.
Operating income is projected to total 82.0 billion yen, up 38.0 billion yen (86.5%) year on year. Factors behind this increase include a better sales mix variance and reduced materials costs, which will offset various negative factors such as higher SG&A expenses, the rise of the yen against the euro, and increased R&D expenses. This will be looked at in further detail later on.
Ordinary income is expected to increase 43.7 billion yen (117.3%) year on year to total 81.0 billion yen. Income before income taxes and minority interests will total 78.0 billion yen, up 25.1 billion yen (47.5%) year on year, due to the gain on the sale of the Subaru Building that was posted last fiscal year. Net income is projected to total 67.0 billion yen, a year-on-year increase of 28.5 billion yen (74.2%).