April 27, 2010
To Whom It May Concern:
Company Name: Sumitomo Heavy Industries, Ltd.
President and CEO: Yoshinobu Nakamura
Stock Code: 6302
Listed On: First Section of the Tokyo Stock Exchange
First Section of the Osaka Securities Exchange
Inquiries: Hideo Oshima
General Manager, Corporate Communications Department
Tel: +81-3-6737-2333

Notice Regarding Revisions to Earnings Forecast and Dividend Forecast
Based on recent trends seen in overall financial performance, Sumitomo Heavy Industries, Ltd. (hereinafter referred to as “SHI” or the “Company) announces the following revisions to the full-year (April 1, 2009 to March 31, 2010) consolidated earnings forecast and year-end dividend forecast, which were most recently made public on November 4, 2009. The changes are as follows:
Details of the Revisions
1. Revisions to Earnings Forecast (1) Full-Year Ended March 2010 – Revisions to Consolidated Financial Projections
(Units: in millions of Yen unless otherwise specified)
Net
Sales
Operating
Income
Ordinary
Income
Full Year
Net Income
Full-Year Net Income
per Share (in Yen)
Previous Forecast (A)
520,000
19,000
16,000
5,000
8.29
Revised Forecast (B)
516,000
28,000
26,500
13,000
21.54
Net Difference (B-A)
(4,000)
9,000
10,500
8,000
―

% Difference
(0.8)
47.4
65.6
160.0
―

Previous Full-Year Results (Period Ended March 2009)
642,918 56,940
50,275
13,649
22.62

(2) Explanations for the Revisions As compared to the previous forecast, although there are no significant changes in net sales to report, both ordinary and operating income figures have been revised upwards. This favorable change in profitability is attributed to a variety of factors. First, in the Mass Produced Machinery Segment, profitability improved as conditions in emerging markets, with a particular focus on China, improved more than anticipated. Further, the structural reform efforts made by this Segment, including the reduction in fixed costs, took effect and improved profitability. In the Ship, Steel Structure and Other Specialized Equipment Segment, the efforts made to reduce costs especially in the area of raw material costs contributed towards overall profitability. Finally, profitability conditions also improved in the Industrial Machinery Segment. The net income figure has also been revised upwards from the previous forecast mainly because favorable conditions in the stock market resulted in the marking up of investment securities. 2. Revisions to the Dividend Forecast (1) Details of the Revisions
(Units: in Yen)
Dividend
Per
Share
(Date of Record)
End of Second Quarter
Year End
Annual
Previous Forecast (Announced July 31, 2009)
0.00
3.00 3.00
Revised Forecast
―

4.00 4.00
Current Year Actual
0.00
―

―

Previous Year Actual (For the Period Ended March 2009)
6.00
0.00 6.00

(2) Explanations for the Revisions SHI’s basic dividend policy is to provide shareholders with an amount that corresponds to the income achieved during the fiscal period while at the same time always looking to increase such amount if possible. The Company comprehensively considers a variety of factors before coming to a decision on the dividend amount, including the need to increase internal reserves to allow for the long-term and stable development of the Company’s businesses. As mentioned above, the net income figures included in the Company’s full-year consolidated financial performance for the period ended March 2010 have been revised upwards from the previous forecast. With this in mind, and in line with the Company’s dividend policy, the Board of Directors passed a resolution at a board meeting held today to add an additional JPY1.0 to the previously announced year-end dividend forecast of JPY3.0 to make the new year-end dividend forecast JPY4.0 per share. Important Notice: The forecasts above were prepared based upon information available to the Company at the time the projections were made. Actual results may differ from such forecasted figures due to a variety of factors that may occur in the future.