PRESS RELEASES > April 25, 2006
April 25, 2006
Fiscal 2006 Earnings Forecast Revisions

Taiheiyo Cement Corporation today announced the following revisions to the earnings forecasts for fiscal 2006 (April 1, 2005­March 31, 2006) announced on November 15, 2005.

1. Revised non-consolidated forecasts for fiscal 2006 (April 1, 2005-March 31, 2006)

Unit Net sales Ordinary income Net income
Previous forecasts (A) \ million 307,000 17,500 500
Revised forecasts (B) \ million 309,000 20,800 ­22,700
Change (B) ­ (A) \ million 2,000 3,300 ­23,200
Percent change % 0.7 18.9 ­
Ref: Fiscal 2005 results \ million 291,734 8,890 3,730

2. Revised consolidated forecasts for fiscal 2006 (April 1, 2005-March 31, 2006)

Unit Net sales Ordinary income Net income
Previous forecasts (A) \ million 880,000 47,000 5,000
Revised forecasts (B) \ million 900,000 49,000 8,000
Change (B) ­ (A) \ million 20,000 2,000 3,000
Percent change % 2.3 4.3 60.0
Ref: Fiscal 2005 results \ million 872,686 38,264 14,412

3. Main reasons for revising earnings forecasts

Non-consolidated

Increase in net sales
· We expect net sales to increase as a result of growth in our environmental business.

Increase in ordinary income
· We expect ordinary income to increase due to higher operating income resulting from growth in our environmental business and cost-cutting effects and to an increase in net financial income.

Net loss
· We anticipate a net loss as a result of recording a loss on the write-off of investments in securities of \21.2 billion and a provision to the allowance for losses on overseas investments of \8.7 billion. These items are discussed in a separate news release published today.

Consolidated

Increase in net sales
· We expect net sales to increase as a result of higher non-consolidated sales at Taiheiyo Cement and higher sales at overseas cement subsidiaries in the United States and elsewhere.

Increase in ordinary income
· Despite the increase in non-consolidated ordinary income, we anticipate a smaller rise in consolidated ordinary income as a result of higher equity in losses of unconsolidated subsidiaries and affiliates.

Increase in net income
· We expect net income to increase as a result of higher gains on the sale of stocks and other securities.