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 2007, covering April 1, through September 30, 2006 and for fiscal 2007, ending March 31, 2007.

１．Amended Projections for First Half of Fiscal 2007 (April 1, 2006 to September 30, 2006)

Consolidated	(Millions of yen)
Net sales Ordinary income Net income Previous projections (A) 605,000 37,000 16,000 Revised projections (B) 669,000 52,000 30,000 Change (B-A) 64,000 15,000 14,000 Change (%) 10.6% 40.5% 87.5% Reference: Results for first half of fiscal 2006 524,926 36,777 16,456

Non-consolidated	(Millions of yen)
Net sales Ordinary income Net income Previous projections (A) 305,000 13,000 5,000 Revised projections (B) 355,000 13,000 6,000 Change (B-A) 50,000 － 1,000 Change (%) 16.4% － 20.0% Reference: Results for first half of fiscal 2006 290,135 8,111 2,083

2. Amended Projections for Fiscal 2007 (April 1, 2006 to March 31, 2007)

Consolidated	(Millions of yen)
Net sales Ordinary income Net income Previous projections (A) 1,210,000 81,000 32,000 Revised projections (B) 1,391,000 96,000 46,000 Change (B-A) 181,000 15,000 14,000 Change (%) 15.0% 18.5% 43.8% Reference: Results for fiscal 2006 1,143,699 80,759 58,802

Non-consolidated	(Millions of yen)
Net sales Ordinary income Net income Previous projections (A) 600,000 30,000 10,000 Revised projections (B) 709,000 30,000 12,000 Change (B-A) 109,000 － 2,000 Change (%) 18.2% － 20.0% Reference: Results for fiscal 2006 601,362 25,960 7,355

3. Reasons for Revision
Management anticipates that consolidated ordinary income will exceed its projection by around ¥15 billion in the period under review, mainly owing to a significant rise in earnings at SUMCO, an equity method affiliate. Other contributing factors include U.S. demand for cement, which remains strong, and copper prices, which continue to remain high.
Consolidated net income should be ¥14 billion higher than envisaged as a result of the increase in consolidated ordinary income.
Our net consolidated forecasts reflect the gain in first-half earnings and should be achievable despite such uncertainties about the operating climate, such as interest rate and fuel cost trends.

4. Dividends for the Year
We plan year-end dividends of ¥3 per share, following interim payouts of ¥2 per share as announced on May 10 this year.

Note: Management produced the above forecasts based on various current assumptions, including for the economic climate and market trends. Results may differ owing to a number of factors.