Hello, I'm Yoshihisa Kainuma.
First off, I'd like to go over the highlights of today's presentation.
During the third quarter, our performance was on track in October and November but suddenly lost momentum in December. Our profit drivers, including bearings, HDD motors, backlights, semiconductors, game-related products, and OIS, slowed down across the board, albeit to varying degrees.
Companies like ours that supply products to various industries should be able to make up for a loss in one or two businesses with its other operations, but our aircraft business alone couldn't really pick up the slack for all the others.
On the upside, we have been informed that our customers have completed their inventory adjustments for HDD-related products, so their sales, which hit bottom in December, should bounce back in January through March. Once HDD inventories in the supply chain are eliminated, sales should recover in the next fiscal year.
We've had some ups and downs this fiscal year. In December, the exchange rates fluctuated significantly, which had a negative impact on our business, as parts purchased when the yen was weak had to be sold when the yen was strong. In addition to that, while we expect a loss of about 9 billion yen from forward exchange contracts this fiscal year, this dent in our bottom line will be covered by a gain of 13 billion yen from the sale of the Tokyo Headquarters.
In light of these circumstances, we revised our full-year earnings forecast and will actively work on structural reforms this fiscal year with an eye to boosting our bottom line next fiscal year.
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