Notice Regarding Revisions to Earnings Forecast

Based on recent trends in financial earnings and other factors, Sumitomo Heavy Industries (hereinafter referred to as the “Company”) has decided to make the following revisions to its earnings forecast that was most recently announced on May 11, 2009. Revisions to the Second Quarter Consolidated Earnings Forecast – Cumulative Basis (April 1, 2009 ~ September 30, 2009)
(Units: millions of yen)
Net Sales
Operating Income
Ordinary
Income
Quarterly Net
Income
Quarterly Net
Income per
Share
(yen)
Previous Forecast (A)
250,000
0
(2,500)
(3,000)
(4.97)
Revised Forecast (B)
250,000
3,500
1,000
(1,500)
(2.49)
Net Difference (B-A)
-
3,500
3,500
1,500

% Difference
-
-
-
-

Previous Year Results for Reference Purposes (Second Quarter of FY2008)
340,774 34,367 33,952 19,777 32.77
Revisions to the Full-Year Earnings Forecast for the Period Ending March 2010 (April 1, 2009 ~ March 31, 2010)
(Units: millions of yen)
Net Sales
Operating Income
Ordinary
Income
Net Income for
the Current
Period
Net Income per
Share for the
Current Period
(yen)
Previous Forecast (A)
530,000
14,000
10,000
3,500
5.80
Revised Forecast (B)
520,000 14,000 10,000 3,500
5.80
Net Difference (B-A)
(10,000)
-
-
-

% Difference
(1.9)
-
-
-

Previous Year Results for Reference Purposes (Fiscal Year Ended March 2009)
642,918 56,940 50,275 13,649 22.62
Explanation for Revisions Consolidated First Quarter Financial Performance (Cumulative Basis) slightly exceeded initial forecasts and as such, the Company has moved to revise its Consolidated Second Quarter Earnings Forecast (Cumulative Basis) in an upwards direction. However, the full-year outlook continues to indicate low levels of economic activity in the Japanese market with no specific end in the sight in the short-term. Further, with the exception of China where the positive effects of a stimulus package can be anticipated, most economies around the world continue to show signs of deeper economic decline with only a glimmer of hope for long-term recovery. Against this backdrop, the Company has revised its net sales outlook downwards by ¥10 billion for the full year, after taking into consideration the current status of orders and reviewing the earnings forecast specifically in the segments of ship, steel structure & other specialized equipment and construction machinery. On the other hand, the Company has maintained its profit forecast for the full year as cost-cutting measures continue to bear fruit. Please note that for the purposes of the Second Quarter Consolidated Earnings Forecast (Cumulative Basis), the exchange rates for major currencies utilized were US$1 = ¥90 and €1 = ¥125.