kuraray


News Releases 2003

Kuraray Revises Mid-Term Forecasts,
Announces Reasons for Projected Extraordinary Loss

Oct. 21, 2003
KURARAY CO., LTD.

Kuraray Co., Ltd. announced that recent developments necessitate revision of its mid-term results forecasts originally announced on May 13, 2003. The Company also disclosed the primary factors behind an expected extraordinary loss.

1.Revisions to forecasts of consolidated performance during the first half of the fiscal year ending March 31, 2004 (April 1, 2003 - September 30, 2003).

  Net Sales Operating
Income
Ordinary
Income
Net Income
Initial forecast (A)
(Announced May 13, 2003)
165,000 12,000 11,000 6,000
Revised forecast (B) 161,000 13,500 12,000 8,000
Change (B-A) -4,000 +1,500 +1,000 +2,000
Percentage change -2.4% +12.5% +9.1% +33.3%
Performance in the
first half of the previous fiscal year
158,155 11,522 9,950 3,615

(¥million, %)

2.Revisions to forecasts of non-consolidated performance during the first half of the fiscal year ending March 31, 2004 (April 1, 2003 - September 30, 2003).

  Net Sales Operating
Income
Ordinary
Income
Net Income
Initial forecast (A)
(Announced May 13, 2003)
98,000 5,500 7,000 4,000
Revised forecast (B) 93,000 6,800 7,400 4,900
Change (B-A) -5,000 +1,300 +400 +900
Percentage change -5.1% +23.6% +5.7% +22.5%
Performance in the
first half of the previous fiscal year
96,731 5,409 6,163 2,188

(¥million, %)

3.Reasons for revisions and principal factors in extraordinary loss

(1)Reasons for revisions
During the six months ended September 30, 2003, sales of poval, EVAL, methacrylic resin, and man-made leathers rose steadily, exceeding our original forecasts. However, the adverse business environment prevented the Fibers and Textiles business from reaching targets, as the effects of the SARS outbreak did with respect to the opto-screens business.
(2)Principal factors behind projected extraordinary loss
The Company is expecting to post an extraordinary loss (non-consolidated) incurred during the first half, in connection with a loss on the revaluation of stock in subsidiaries of approximately ¥2.5 billion (integrated into the revised forecasts above).

Note : The forecasts above are based on data available at time of publication. Actual performance may differ substantially as a result of subsequent events. Actual performance for the period of the forecasts above, as well as forecasts for the fiscal year as a whole, will be published in the mid-term report scheduled for release on November 12.