September is the closing month for our company.
With much gratitude, this year we expect a wonderful closing account.
Sales amount have reached 50 million USD, an increased income of 35% from the previous year.
And profit will be 4.7million USD which is 158% increase from the previous year.

The significant increase of the construction machinery market globally is the big factor that 
triggered the favorable turn for the market of our filters.
However, the market continues to vary.
In China, America, and Europe, each region's market always continues to change.

Although China's market had a smooth continued growth until this spring, the sales of 
construction machineries has stopped suddenly due to the monetary squeeze of early
spring of this year.
Furthermore, the demand of construction machineries is falling, because even development
projects in all regions in China was pinned down by the government to apprehend excess supply.
Projections that growth will continue next year is generally viewed. But, anxiety still remains
for the future.

The U.S. is awaiting the outcome of its presidential election and business outlook seems satisfactory.
Most construction machinery makers in the U.S. are showing increased volumes in their
production plans.
According to theory, the U.S. business cycle period is said to be between 8 to 10 years.
Since this year is considered a start of a business upturn period, there are opinions that
this transition has moved smoothly.
Yet, uncertainty still remains whether business will prosper after the presidential elections.

In Europe, the economic index such as GDP and mining and manufacturing index 
(Production Index) 
are showing a calm growth.
Even proceeds of our sales office in the region has favorably increased smoothly.
However, the price of raw materials such as iron has also increased furiously that 
prediction for its 
future trend is intolerable.
Incidentally, iron costs 604 Euros/ton this year, although it was only 240 Euros/ton
last year. 

Of course, sometimes business prospers and also sometimes business declines.
Because of our main products "FILTERS", a kind of expendable supplies, we could expand 
our sales amount in both economic situations. 
I think that this type of industry has been blessed very much.
Although, this pattern does not necessarily continue as it does.

In Yamashin Filters, we hold the business policy explanation meeting at the beginning of 
September every year. The long-range plan and the next fiscal year's business policies of 
our company have been heard by all employees.
After clarifying the details of the company's present situation, strengths, weaknesses,
and problems or obstacles to overcome, I show the future direction and vision to where the company shall go ahead. 

No matter what the situation may be, the president is responsible for the Sales amounts
and Profits.
The long-range plan and also the next fiscal year's business policy shall be announced with resolution as a president.
This year also, I will give the presentation of my determination to all employees and continue
to try to achieve this "Challenge to the Dreams".

I hope for your continued patronage and support for the Yamashin Filter Group.
Thank you.


Atsuhiko Yamazaki
President 
Yamashin Filter Mfg.,Corp