Q: The forecast for business results for the second quarter has been revised. What is the reason for this revision?
A: We now expect that the actual demand for hydraulic excavators worldwide will be less than stated in our previous forecast that was announced on May 26 because of the drop in the demand in China due to monetary tightening and other reasons, although the demand is growing elsewhere, including North America, Japan, and some other countries in Asia. Under these circumstances, we expect that aggregated net sales for the second quarter will be lower than previously forecast. However, operating income, ordinary income and net income will exceed the figures previously forecast because of favorable results in parts and services business sectors, whose profitability is high, and because of progress in cutting costs.