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Last updated: Aug 2, 2010
| First and Second Half Forecast Revisions |
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What were the factors behind the upward revision to the first half earnings forecast? Is it due only to the first quarter results being better than expected, or is it also partially because the second quarter estimates were also raised? |
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The revised figures reflect the combination of the first quarter amount that exceeded expectations and a slightly upward revised second quarter projection that was adjusted in light of the fact that first quarter results surpassed our expectations. |
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Do you see any risk at this time that could cause earnings to fall short of the second half target? |
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We plan to review the second half forecast after seeing the actual second quarter results. At this point, we do not see anything that would prevent us from reaching the second half targets we set at the start of the term. |
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| IT Field Results and Outlook |
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After the strong sales in the IT field in the first quarter, what is the outlook for the second quarter and after? For what type of products are sales rising? |
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We expect the first quarter demand environment to continue through the first half. The recovery in demand is being accompanied by brisk sales of liquid-crystal related products, while some other products are also attracting new demand. |
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| Progress in Raising PVC Product Prices |
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Since June, what progress has been made in raising the PVC product prices? |
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We have already requested distributors to apply the new prices. Whether the new prices will permeate or not depends on the demand trends. Sales in the first quarter increased year on year due to the steady demand, but demand trends for the second quarter onward remain unclear. The first half forecast assumes the increased prices will achieve a certain degree of permeation. |
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| Housing Market Trends and Order Outlook |
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What factors led to the higher-than-anticipated housing orders in the first quarter? What is the outlook for the second quarter and after? |
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First quarter results exceeded our forecasts because government policies and other factors resulted in a larger number of customers considering the housing market with a serious intent to buy. The outlook for the second quarter onward is not optimistic because various factors, such as the weak stock market, are rekindling uncertainty about the economy's future direction. Nevertheless, we expect to achieve our initial order targets. |
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Will the second half forecast for housing unit orders be revised in light of the first half forecast upward revision? Is there concern that orders will drop when the government policies are terminated? |
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Our order forecast for the second half is unchanged at this point. The ending of the government polices will inevitably have an impact. However, we anticipate some heating up of orders just before the policies expire. In the end, we think the two will balance each other out and enable us to reach our order targets for the second half. |
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Disclaimer
This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.
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