The business environment for the Toyobo Group continued to recover during the first quarter period of fiscal 2011 (the three-month period from April 1 to June 30, 2010). In the Japanese economy, the pace of recovery for domestic demand remained sluggish in such aspects as consumer spending and business investment, but driven by exports amid continued economic expansion in China and other areas of Asia, the economy was positive overall.

Under such circumstances, the Toyobo Group, aiming to become "The category leader for providing new value in the environment, life science, and high-function products fields," worked to expand sales of high-function products such as materials related to LCDs, electronics components and automotive applications, to bring to market new products such as compact autoanalyzers and films for solar cell backsheets, and to achieve global business development in such areas as Chinese sales of the "VYLON" series of industrial adhesives.

Due mainly to expanded sales in the electronics and information displays and automotive fields, we posted net sales for the subject first quarter period rose ¥9.4 billion (12.9%) from the same period of the previous fiscal year to ¥82.2 billion, with operating income up ¥5.2 billion from a loss a year earlier to ¥4.5 billion. However, due to the impact from the extraordinary loss caused by the valuation of investment securities and other factors, the net loss for the period increased ¥0.9 billion from the same period of the previous fiscal year to ¥2.5 billion.

We anticipate that sales and operating income will exceed initial forecasts for the full year period, due mainly to continued strong shipments of films for LCD and optical uses, functional polymers for electronic components and automotive applications, and to robust demand in functional materials for environmental and safety applications, products for medical use, and food packaging films. Accordingly, we have revised upward our forecast for net sales for the subject fiscal year by ¥10 billion from the initial forecast to ¥350.0 billion. The forecast for operating income has been increased ¥2 billion to ¥22.0 billion, while the forecast for net income is unchanged from the initial ¥5 billion.

I would like to offer my most sincere appreciation to our shareholders and investors, and ask for your continued support.