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23rd February 2009 - Akebono Revises Fiscal 2008 Forecast

Akebono Brake Industry Co. Ltd. announced revised Consolidated Financial Forecast and Dividend Forecast for Fiscal Year 2008 (April 1, 2008 through March 31, 2009).

Revised Consolidated Financial Forecast for FY2008

(unit: million yen) Net Sales Operating Income Ordinary Income Net Income Net Income per share
Previous Forecast (A) 179,900 6,800 5,100 2,500 23.30 yen
Revised Forecast (B) 158,000 (6,500) (8,500) (7,000) (65.22 yen)
Changes / Amount (B-A) (21,700) (13,300) (13,600) (9,500) --
Changes / ( % ) (12.1) -- -- -- --
Previous Result FY2007 184,731 15,158 12,619 6,637 61.85 yen

From September 2008, the financial crisis spread across the real world economy resulting in an unforeseen sudden drastic fall in production amoung automakers, both in Japan and abroad.

Loss on this large-scale fall in sales, loss on valuation impairment of marketable securities and loss on closure of Springfield plant (Kentucky, USA), are major reasons of revising Full Year performance (Fiscal year ending March 31, 2009).

Under these business environment, Akebono group has been experiencing unexpected level of excess capacity.  To achieve profit recovery at the earliest, we will hasten our global restructuring and put strong focus on emergency measures listed below:

 • Decrease in compensation for directors and managements
 • Optimize human resources for current production level
 • Drastic reduction in fixed costs to achieve strong cost structure
 • Review of global asset efficiency to reflect current situation
 • Minimizing capital expenditure and use of refurbished equipment

Source: Akebono Corporation Press Release

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