Furusato Industries Ltd. revised consolidated and non-consolidated earnings guidance for the full year ending March 31, 2016. For the year, on consolidated basis, the company now expects net sales of JPY 94,800 million compared with JPY 91,725 million, operating income of JPY 3,500 million compared with JPY 3,219 million, ordinary income of JPY 3,800 million compared with JPY 3,499 million, profit attributable to owners of parent of JPY 2,350 million and net income per share of JPY 162.09 compared with JPY 2,127 million and net income per share of JPY 146.70 provided in the previous guidance. Reason for the revision to the earnings forecasts: In the Equipment and Tools Business, net sales are expected to record a high-single digit growth, mainly led by the Industrial Equipment Business and the Machine and Tools for Automotive Business despite a decrease in sales and income in the previous second half forecast of fiscal 2015. In the Machine and Facility Business, net sales are expected to record a double-digit growth in the second half as a result of higher-than-expected sales based on steady backlog despite a decrease in sales and income in the previous second half forecast. In the Construction and Piping Products Business, net sales are expected to decrease slightly. According to the breakdown by business, in the Steel Frame Building Supplies Business, net sales are expected to decrease in the second half, reflecting further delay in construction works due to defective piling work problem as well as a shortage of construction workers. Meanwhile, in the Piping Products Business, net sales are expected to remain on an upward trend. Gross profit margin is expected to fall short of the previous forecast due to fierce price competition in the Steel Frame Building Supplies Business. Moreover, the company expects to record provision for removal expenses of noncurrent assets of ¥100 million under extraordinary losses based on the agreement for demolition work of old factory by factory relocation plan. Consequently, consolidated sales, operating income, ordinary income and net income attributable to owners of parent are expected to exceed the previous forecast.

For the year, on non-consolidated basis, the company now expects net sales of JPY 28,900 million compared with JPY 29,207 million, operating income of JPY 1,450 million compared with JPY 1,544 million, ordinary income of JPY 1,600 million compared with JPY 1,705 million, profit attributable to owners of parent of JPY 950 million and net income per share of JPY 65.52 compared with JPY 998 million and net income per share of JPY 68.83 provided in the previous guidance. Although the company expected a slight increase in sales and a decrease in income below operating income in the previous second half forecast, in the Steel Frame Building Supplies Business, net sale are expected to decrease due to further delay in construction work. The gross profit margin is expected to fall short of the previous forecast due to fierce price competition and an increase in cost of finished products sold, resulting from a review of the useful life of building based on a decision of demolition of the old factory by factory relocation plan. Moreover, The company expects to record provision for removal expenses of noncurrent assets of ¥100 million under extraordinary losses based on the agreement for demolition work of old factory by factory relocation plan. Consequently, non-consolidated sales, operating income, ordinary income and net income attributable to owners of parent are expected to fall short of the previous forecast.