Notice of Revision of Forecast Business Results

Data
The business results forecast for the September 2003 interim period (from April 1, 2003 to September 30, 2003), which had been announced on May 16, 2003, have been revised as follows.

1. Revision of numerical values forecast for the consolidated business results of the September 2003 interim period (from April 1, 2003 to September 30, 2003)

(units: 100 M Yen, %)

	Net sales	Operating income (loss)	Ordinary income (loss)	Net income (loss)
Previously announced forecast (A) (announced on May 16, 2003)	2,500	70	10	0
Revised forecast (B)	2,420	50	15	5
Amount of increase/decrease (B-A)	△ 80	△ 20	5	5
Rate of increase/decrease	△ 3.2	△ 28.6	50.0	－
Previous term business results (September 2002 interim period)	2,426	53	14	26

2. Revision of numerical values forecast for the non-consolidated business results of the September 2003 interim period (from April 1, 2003 to September 30, 2003)

(units: 100 M Yen, %)

	Net sales	Operating income (loss)	Ordinary income (loss)	Net income (loss)
Previously announced forecast (announced on May 16, 2003)	1,120	40	10	0
Revised forecast (B)	1,081	40	23	7
Amount of increase/decrease (B-A)	△ 39	0	13	7
Rate of increase/decrease	△ 3.5	－	130.0	－
Previous term business results (September 2002 interim period)	1,082	32	13	10

3. Reasons for the revisions

Consolidated

Net sales are expected to decline by 8 billion yen because a portion of sales of machinery products have overlapped into the period subsequent to October and sales of ready-mixed concrete-related products have been stagnant. Operating income is expected to decline by 2 billion yen because of the deterioration of the profitability of exports to the United States due to cost increases and the appreciation of the Canadian dollar in connection with model changes in the aluminum wheel business in North America and because of the effects of cost increases for raw materials for caprolactam. Ordinary income is expected to increase by 5 billion yen because of conversion differentials in US dollar-denominated debt due to the above-mentioned appreciation of the Canadian dollar as well as the Thai baht and because of improvements in financial expenditures, including reductions in interest payable, which compensated for declines in business profits. Consequently, net income is expected to increase by about 500 million yen for the term.

Non-consolidated

Net sales are expected to decrease by 3.9 billion yen because a portion of sales of coal have overlapped into the period subsequent to October and sales of pharmaceutical intermediates have not achieved planned targets. There are no changes from the figures forecast for operating income in the previous announcement because increases in profits from battery materials and synthetic rubber more than cover the effects of declines. Operating income is expected to increase by 1.3 billion yen due to reductions in interest payable and other improvements in financial expenditures. As a result, net income is expected to increase by 700 million yen for the term.

The Company will make a new announcement regarding the forecast of full-year business results when interim business results are announced, which is scheduled to take place on November 18. This new announcement is intended to take into consideration the effects of positive factors, such as the rapid rise in the sales price of caprolactam since the second half of the term, and negative factors, such as the high likelihood of a strike at the US-based aluminum wheel plant in connection with the revision of the labor agreement from November.