Future Outlook

Net sales for the cumulative second quarter of FY 2019 decreased due to a delay in shipments of some products as a result of responses to inappropriate quality issues related to the aircraft interiors business and the aircraft seat business. Products that have been delayed in shipment is expected to be shipped out from the quarterly third quarter of FY 2019 during which corrective/preventive measures will be implemented for the inappropriate quality issues. As such, financial results are expected to recover from the consolidated financial results forecast announced on May 10, 2019. There have been no cancellations of orders and recalls.

Meanwhile, income is expected to decrease due mainly to the impact of losses incurred through the cumulative second quarter of FY 2019, including additional expenses related to responses to the inappropriate quality issues, increases in personnel expenses and transportation costs for improving shipment delays, and expenses for shifting orders to other production bases as a response measure to the temporary suspension of production, as well as an additional provision for loss on construction contracts recorded as a result of an increase in the costs of some programs. Accordingly, the consolidated financial results forecast for the fiscal year ending March 31, 2020 has been revised.

In addition, the exchange rate in or after the quarterly third quarter of FY 2019 assumed for the consolidated financial results forecast is unchanged at ¥105 per US$1.

Consolidated earnings forecast for the fiscal year ending March 31, 2020 (April 1, 2019 - March 31, 2020)

(Amounts are rounded down to the nearest million yen.)

Net sales

Operating income

Ordinary income

Net income attributable
to shareholders of
parent company

Full year

92,600

 2,900

2,200

1,300