Our consolidated operating plan for the fiscal year ending March 31, 2009 forecasts increased sales but decreased income year on year.
Domestic sales will improve in sales mixture due to increased sales volume of passenger cars, while overseas sales will increase by 119.1 billion yen due to an improvement in sales volume & mixture stemming from anticipated increased sales volume and due to increased sales of 23.7 billion yen from non automotive business and subsidiaries, etc. These increases will compensate for a loss of 108.3 billion yen in currency exchange stemming from the yen’s appreciation. As a result, net sales will increase by 27.7 billion yen.
Operating income will be detailed later. In brief, we forecast operating income will decrease by 22.7 billon year on year to 23.0 billion yen, which will stem from exchange loss due to rapid appreciation of the yen, soaring raw material prices, and increasing fixed costs and R&D expenses despite our cost reduction efforts and efforts for improving sales volume & mixture by releasing new models.
Ordinary income will decrease by 25.4 billion yen to 20 billion yen.
Net income will also decrease by 8.5 billion yen to 10 billion yen.