News

In light of the Company's recent performance, we have revised, as follows, the forecasts disclosed on May 10 this year for the first half of fiscal 2006, covering April 1, through September 30, 2005 and for fiscal 2006, ending March 31, 2006.

1. Amended Projections for First Half of Fiscal 2006
Consolidated

(Millions of yen)

Net sales Ordinary income Net income Previous projections (A) 475,000 22,000 5,000 Revised projections (B) 510,000 32,000 13,000 Change (B-A) 35,000 10,000 8,000 Change (%) 7.4% 45.5% 160.0% Reference: Results for first half of fiscal 2005 466,325 24,154 9,543

Non-consolidated

(Millions of yen)

Net sales Ordinary income Net income Previous projections (A) 255,000 6,500 2,000 Revised projections (B) 275,000 7,000 2,000 Change (B-A) 20,000 500 - Change (%) 7.8% 7.7% - Reference: Results for first half of fiscal 2005 261,796 10,772 2,534

2. Amended Projections for Fiscal 2006
Consolidated

(Millions of yen)

Net sales Ordinary income Net income Previous projections (A) 970,000 55,000 18,000 Revised projections (B) 1,030,000 62,000 24,000 Change (B-A) 60,000 7,000 6,000 Change (%) 6.2% 12.7% 33.3% Reference: Results for fiscal 2005 984,776 50,505 16,374

Non-consolidated

(Millions of yen)

Net sales Ordinary income Net income Previous projections (A) 500,000 18,000 6,500 Revised projections (B) 525,000 19,000 6,500 Change (B-A) 25,000 1,000 - Change (%) 5.0% 5.6% - Reference: Results for fiscal 2005 531,246 20,203 6,135

3. Reasons for Revisions
Management expects consolidated ordinary income to exceed its previous projection by around ¥10 billion, for several reasons. Cement demand in the United States has been above expectations. High copper prices have boosted equity method earnings from overseas subsidiaries. On top of that, sales have been solid in such areas as advanced materials & tools products for the automotive sector and 300mm wafer products.
The Company looks for consolidated net income for the half to be about ¥8 billion higher than originally envisaged, reflecting the improved ordinary income.
While there are some uncertainties associated with fuel price trends and the economic climate, for the full year management anticipates that consolidated ordinary income and consolidated net income will be ¥7 billion and ¥6 billion higher, respectively, than it initially forecast. The Company should thus reach its consolidated ordinary income target of ¥60 billion a full year ahead of its medium-term management plan.