PRESS RELEASES > October 20, 2006
October 20, 2006
Revision of Earnings Forecasts for 1H FY 03/2007

 Taiheiyo Cement Corporation today announced the following revisions to its earnings forecasts announced with FY 03/2006 results on May 16, 2006.
1.Revised non-consolidated forecasts for 1H FY 03/2007 (April 1, 2006-September 30, 2006)

Unit Net sales Ordinary income Net income
Previous forecasts (A) \ million 149,000 7,500 2,600
Revised forecasts (B) \ million 153,100 11,100 3,200
Change (B) - (A) \ million 4,100 3,600 600
Percent change % 2.8 48.0 23.1
Ref: 1H FY 2006 results \ million 152,953 9,511 -6,636

2.Revised consolidated forecasts for 1H FY 03/2007 (April 1, 2006-September 30, 2006)

Unit Net sales Ordinary income Net income
Previous forecasts (A) \ million 440,000 17,500 2,200
Revised forecasts (B) \ million 453,000 24,500 6,500
Change (B) - (A) \ million 13,000 7,000 4,300
Percent change % 3.0 40.0 195.5
Ref: 1H FY 2006 results \ million 427,652 17,581 -12,883

3. Main reasons for revising earnings forecasts
Non-consolidated
Increase in net sales
· We expect net sales to increase as a result of higher sales volume for landfill materials and a rise in the price of cement exports.

Increase in ordinary income
· We expect ordinary income to increase as a result of higher net sales as well as improvement in net financial expenses due to an increase in dividends received from consolidated subsidiaries.

Increase in net income
· We expect net income to increase despite recording extraordinary losses from a provision to the allowance for losses on overseas investments and from impairment losses.

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 US and elsewhere.

Increase in ordinary income
· We expect ordinary income to increase as a result of higher non-consolidated ordinary income at Taiheiyo Cement and higher ordinary income at overseas cement subsidiaries in the US and elsewhere.

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

We are currently calculating our non-consolidated and consolidated earnings forecasts for FY 03/2007 and plan to announce these forecasts along with 1H FY 03/2007 results on November 14.