Explanatory Meeting for the Third Quarter Ended December 31, 2012 Outline of Answers to Main Questions
Explanatory Meeting for the Third Quarter Ended December 31, 2012 Outline of Answers to Main Questions
Q: Profits are forecasted to significantly advance in the fourth quarter. What are the grounds for this forecast?
A: We plan to secure profits, by raising the sales proportions of Mining machinery and China, and compressing inventory as well as the current foreign exchange situation of the weakening yen.
Q: The outlook for mining machinery demand was revised down again. Do you see any signs of improvement in new orders of mining machinery?
A: Although demand in Indonesia remains sluggish, we have been receiving new inquiries from Russia CIS regions, etc., since the beginning of the year, and we are seeing a slight improvement recently.
Q: Do you still plan to conduct the capital investment plan after considering the current situation of the mining industry?
A: Although the new buildings in the factory are under construction for better production rationalization, we will take a flexible approach with regards to installation of the working machines inside.
Q: What is the outlook for the Chinese market?
A: We have been seeing a slight improvement in the demand for small machineries, but demand overall remains severe. The demand in the fourth quarter is expected to decline by 30% year-on-year and actual demand recovery is forecasted to be in or after the next fiscal year.
