Estimated net sales for this fiscal year will increase 33.5 billion yen. This will be due to an improved product mix in overseas markets, exchange gains of 15.2 billion yen and increases in sales for our three internal Companies, which are estimated to total 17.6 billion yen, despite a 24.3 billion yen decrease in revenue resulting from the termination of SIA’s consignment production in addition to an unfavorable product mix in the domestic market.
Operating income is expected to increase by 7 billion yen over the previous fiscal year. Further details on operating income will be provided later.
Non-operating areas are expected to see amortization of consolidation adjustments falling by 3.6 billion yen (6.9 billion yen to 3.3 billion yen) as well as foreign exchange losses and valuation losses on derivatives amounting to approximately 6 billion yen. Ordinary income is expected to be 4.6 billion yen less than the previous year at 39 billion yen.
As for net income for this period, extraordinary losses will include a loss of 5.6 billion yen associated with the cancellation the joint development with Saab, which was accounted for in the first half, costs associated with the early retirement program implemented in the third quarter totaling 7.9 billion yen, a decrease in asset-impairments to approximately 6 billion yen as well as 5 billion yen as a result of disposal of fixed assets. However, extraordinary gains amounting to 5 billion yen were posted as a gain on sales of investment securities. This is forecasted to result in net income of 12 billion yen, a 6.2 billion yen year-on-year decrease.