SNT CORPORATION Business Report FY2009

Business Highlights

Financial Overview

(In millions JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Overall
Sales	11,592	18,168	(36.2)	Despite the Company's efforts to improve its business structure and performance, its income decreased year-on-year due to a substantial decline in sales volume in the first half.
Operating income	141	1,411	(90.0)
Ordinary income	386	2,128	(81.9)
Net income	(928)	659	-	Net income was down as a result of the Company's posting reserves for non-performing debts, in order to restore its financial soundness.
Forged products business
Sales	8,949	14,835	(39.7)	The Company's performance was negatively affected by its customers in the automotive and construction-machinery industries adjusting their production volumes in the first half. Although the Company started to recover in the second half, few companies in Japan were making capital investments. The Company had to rely on demand outside Japan for commercial vehicles and large construction machinery, which are the types of vehicles on which the Company's products are used. As a result, production volume recovered, but at a slow pace.
Operating income	180	1,430	(87.4)

Highlights by region

Japan
-Sales were 8 billion 493 million yen, a 37.2% decrease year-on-year; and operating income was 433 million yen, a 62.5% decrease year-on-year. This was due to companies in the automotive and construction-machinery industries reducing their production volumes, which negatively impacted the Company's forging business. This was coupled with the extremely difficult market environment for winning new orders in its other businesses.

Thailand
-Sales were 3 billion 98 million yen, a 33.2% decrease year-on-year; and operating income was 79 million yen, a 88.2% decrease year-on-year. This was due to companies and customers in the automotive industry working to reduce current excess inventories.