Page 1/3
Tuesday, May 27, 2008

To All Concerned Parties
Kanamoto Company, Limited
Stock Code 9678
Tokyo Stock Exchange 1st Section; Sapporo Stock Exchange
Nobuhito Utatsu
Director and Corporate Officer, Division Manager, Accounting Division< Contact for inquiries concerning this material >Yuichi Takayama
IR & Public Relations Section Manager, Office of the President
Telephone: + 81 – 11 – 209 – 1631

Notification Concerning Revision of Projected Interim
and Full-year Operating Results
Kanamoto Company, Limited (Kanchu Kanamoto, President; Head Office: Sapporo, Japan), Japan’s
leading construction equipment rental company, has made the following revisions to its projectedconsolidated and non-consolidated interim (November 1, 2007 – April 30, 2008) and full-year operating
results for the fiscal year ending October 31, 2008 (November 1, 2007 - October 31, 2008) provided in the
Financial Statements Bulletin released on December 7, 2007.
The Company plans to release its Interim Financial Statements Bulletin for the fiscal year ending October
2008 on Friday, June 6, 2008.
(Millions of yen, except net income per share which is in yen)
1. Revised projection of consolidated operating results(November 1, 2007 – April 30, 2008)(1) Fiscal year ending October 2008, interim periodRevenues

OperatingincomeOrdinaryincome

Interim netincome

Net income
per share

Prior projection（A）

37,500

3,400

3,300

1,800

54.80

Revised projection（B）

37,200

2,900

2,800

1,500

45.67

Increase (decrease)

（B－A）

−300

−500

−500

−300

9.13（%）−0.8%−14.7%−15.2%−16.7%−16.7%

Prior fiscal year interim results(Fiscal year ended October 200７)

36,230

3,438

3,422

2,382

72.53

Rate of change(2) Fiscal year ending October 2008, full year
Revenues

Operatingincome(November 1, 2007 – October 31, 2008)
OrdinaryInterim net
Net income
incomeincomeper share

Prior projection（A）

71,900

4,600

4,400

2,300

70.02

Revised projection（B）

71,600

3,600

3,400

1,500

45.67

Increase (decrease)

（B－A）

−300

−1,000−1,000−800−24.35（%）−0.4%−21.7%−22.7%−34.8%−34.8%

68,626

4,236

4,416

3,035

92.40

Rate of change
Prior fiscal year results(Fiscal year ended October 2007)

Revision of Projected Operating Results

2008/05/27 Page 2/2

2. Revised projection of non-consolidated operating results(1) Fiscal year ending October 2008, interim period
Revenues

Operatingincome(November 1, 2007 – April 30, 2008)
OrdinaryInterim net
Net income
incomeincome
per share

Prior projection（A）

32,100

3,100

3,000

1,600

48.71

Revised projection（B）

32,100

2,700

2,700

1,400

42.62

Increase (decrease)

（B－A）

0−400

−300

−200

−6.09（%）

0.0%−12.9%−10.0%−12.5%−12.5%

Prior fiscal year interim results(Fiscal year ended October 200７)

32,449

3,070

3,195

2,320

70.62

Rate of change(2) Fiscal year ending October 2008, full year
Revenues

Operatingincome(November 1, 2007 – October 31, 2008)
OrdinaryInterim net
Net income
incomeincome
per share

Prior projection（A）

61,700

4,300

4,100

2,200

66.98

Revised projection（B）

61,700

3,600

3,500

1,700

51.76

Increase (decrease)

（B－A）

0−700

−600

−500

−15.22（%）

0.0%−16.3%−14.6%−22.7%−22.7%

61,576

4,012

4,372

3,431

104.44Rate of change
Prior fiscal year results(Fiscal year ended October 2007)

3. Reasons for the revision (Fiscal year ending October 2008 Interim period operating results)
In the construction equipment rental business, signs of improvement in the delay of construction work starts
caused by revision of the Building Standards Law were evident from the latter half of January 2008, withconstruction demand exhibiting a recovery trend centered on major metropolitan areas. Nevertheless, withconstruction demand in local regions continuing to be negatively affected by the delay described above, as
well as by factors such as a temporary halt in works because of disagreements over Japan’s special
funding tax for road construction, Kanamoto projects rental revenue to fall below its initial plan. On theother hand, revenue from sales compensated for the decline in rental revenue, as a recovery was seen insteel products sales with the start of construction on previously postponed building projects, and used
construction equipment sales exceeded the prior year level because of vigorous overseas demand despite
the affect from appreciation of the yen.
As a result of these factors, Kanamoto projects it will achieve its initial projection for total revenues, but hasrevised downward its projection for interim period operating income, ordinary income and net income toreflect lower construction equipment rental revenue.
(Fiscal year ending October 2008

Full-year operating results)

Although the delay in construction starts caused by revision of the Building Standards Law is being
eliminated, uncertainty in the domestic business outlook is looming larger as the yen continues tostrengthen and raw materials, led by higher oil prices, continue to climb, and as concerns of a slowdown inprivate sector capital investment have emerged.
Furthermore, there is no change in the trend of cutbacks in public works, and little room for significant
improvement in future domestic construction demand is anticipated before the interim period. Kanamoto
expects its consolidated subsidiaries with offices in local regions in particular to remain greatly affected bythese factors, and believes it must project earnings performance for the full year extremely conservatively.
The Company therefore has also revised its full-year operating results forecast.

Revision of Projected Operating Results

2008/05/27 Page 3/2

4. Other matters
Kanamoto has not changed either its interim dividend or year-end dividend because of this revision of its
projected operating results.
These projected consolidated operating results were prepared using projections based on information
available to the Company as of the date this material was released and forecasts of the future economic,
environment, and include various risks and uncertainty factors. Accordingly, there is a possibility theCompany's actual consolidated operating results will differ from the projected amounts shown above as aresult of various future factors, including but not limited to economic conditions surrounding the Company,
market trends, and competitive conditions.

End