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Net sales for the third quarter were up 12.8 billion yen due to the increase in sales volume and improved product mix in overseas markets, foreign exchange gains approximately 3 billion yen as well as increased sales at our three internal Companies despite a setback in domestic sales both in terms of sales volume and mix.
Operating income increased 9.2 billion yen over the previous year to 20.2 billion yen. This increase was the result of foreign exchange gains due to the weak yen, our efforts to offset unfavorable sales composition through reduction in cost of materials as well as streamlining R&D expenses and other overhead. Further details on operating income will be provided later.
Ordinary income increased 4.2 billion yen over the previous year to 17.7 billion yen. Operating income increases were reduced by 5 billion yen because the depreciation of Japanese yen led to a decrease in gain on revaluation of derivatives, a increase in loss on revaluation of derivatives , which totaled approximately 4 billion yen as well as an exchange loss of approximately 1 billion yen.
The net income for this period declined 7.6 billion to 4.8 billion yen due to a provision for premium retirement benefit 7.9 billion yen to employees under the early retirement program which we offered in December. Another negative factor was that the extraordinary gain of 2.5 billion yen for the third quarter of the previous fiscal year did not accrue this period. This amount was the balance after offsetting SIA�s actual losses incurred from expenses for capital leasing and others with the amortization of consolidation adjustments arising from the termination of Isuzu�s consignment production.