Net sales for the year ended March 31, 2007 were 1 trillion 494.8 billion yen, 18.4 billion yen higher compared to the last fiscal year, as the deteriorating product sales volume and mixture was compensated for by effects of a depreciation of yen adding 39.0 billion yen, and 6.8 billion yen higher net sales by the 3 companies, etc.
Operating income will be explained in details later. The benefits of a depreciation of yen, material cost reduction, and decrease of SG&A expenses did not cover the deterioration of Japan and overseas sales volume and mixtures and increased R&D expenses, resulting in a 10.4 billion yen reduction for the operating income, to 47.9 billion yen.
On the other hand, however, ordinary income fell 4.6 billion yen year on year basis, to 42.2 billion yen.
This period’s net income did not have the extraordinary loss such as additional retirement payments recorded in the previous fiscal year, so the net income rose 16.3 billion yen to 31.9 billion yen.
Further, in the revised performance projection announced on April 20, downward revision of 19.9 billion yen due to the recognition of valuation allowance against differed tax assets of Fuji Heavy Industries (FHI) resulted in a 6.4 billion yen loss for the period, but this was eliminated between FHI and the domestic dealerships to which it invests, so there was no impact to the consolidated results.