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Net non-operating income and expense increased by 1.7 billion yen compared to the same period of previous fiscal year.

The difference in non-operating income was primarily caused by the amortization of negative goodwill, which offset the fixed cost of joint facility borne by SIA after the withdrawal of Isuzu, completed last fiscal year, resulting in a decrease in non-operating income of 1.6 billion yen.

Foreign exchange has the greatest impact on net non-operating income and expense. The effects of foreign exchange are (1) gains and losses on revaluation of derivatives and (2) foreign exchange gains and losses. A year-to-year comparison shows (1) a 0.9 billion yen gain on revaluation of derivatives included in other items of the net non-operating income from the previous fiscal year, and a 0.1 billion yen loss on revaluation of derivatives for non-operating expense gave a net 0.8 billion yen gain. This period’s 0.1 billion yen gain on revaluation of derivatives and 0.4 billion yen loss on revaluation of derivatives gave a net 0.3 billion yen loss, for a negative 1.2 billion yen. (2) On the other hand, the difference in the market rate and hedge rate in net foreign exchange gains and losses resulted in a 4.1 billion yen loss for this period. The previous fiscal year included a 7.7 billion net foreign exchange loss in others item of the net non-operating expense for a year-on-year difference of +3.5 billion yen.

The impact of foreign exchange led to a total of +2.4 billion yen compared to the same period of previous fiscal year.

However, the actual -4.5 billion yen amount of foreign exchange impact this 3rd quarter is primarily comprised of the 3.9 billion yen difference between the 36.6 billion yen operating income and the 32.7 billion yen ordinary income.