BACK NEXT
 
 
In light of the results obtained over the last nine-months that have exceeded the consolidated operating plan targets announced in our interim report, we have revised our forecast for the fiscal year ending March 2010 with the exception of net income.
Consolidated net sales is projected to fall 35.8 thousand yen, or 2.5%, to 1,410 billion yen. This figure includes domestic and overseas sales revised upward respectively by 10 billion yen and 40 billion yen from our interim forecast. Operating income is estimated to increase 19.8 billion yen to total 14 billion yen on a year on year basis. Although we expect that the yen is likely to remain strong, we will work on bringing sales volumes up while making cost reduction efforts with an eye to returning to profitability. Estimated operating income has also been revised upward by 49 billion yen from our original forecast at the beginning of this fiscal year (further details will be provided later).
Ordinary income is forecasted to fall below operating income by 4 billion yen, resulting in an ordinary income of 10 billion yen. This decline is expected to come from foreign exchange and derivative gains of 1 billion yen, a loss of 3 billion yen due to declining financial revenue and rising expenditures, a gain of 1 billion yen from equity method income, as well as other losses totaling 3 billion yen. There will also be a 14.6 billion yen year on year increase in ordinary income. This reflects an upward revision of 50 billion yen from our original forecast at the beginning of this fiscal year.
As for net income, we project an extraordinary loss of 3 billion yen on sales and retirement of noncurrent assets, an approximate 1 billion yen loss on abandonment of inventories belonging to the Industrial Products Company (which was posted during the first half of this fiscal year), a domestic dealer-related impairment loss of 6 billion yen, additional impairment loss of 10 billion yen for the Industrial Products Company with their sluggish operation and loss of 3 billion yen due to other reasons. These losses all together add up to a pretax loss of 13 billion yen. This loss combined with tax expenses for our subsidiaries amounting to 12 billion yen will generate a net loss of 25 billion yen. That's a 44.9 billion yen year on year loss reduction.