We've summarized our latest financial results into two points.
Operating income for the third quarter of the fiscal year under review amounted to ¥7.7 billion, up ¥2.0 billion or 36% year on year. The first quarter of the fiscal year began at a slow pace, due to the effects of the Great East Japan Earthquake. However, earnings momentum started to recover from the second quarter, and returned to a year-on-year growth trend in the third quarter. Ultimately our earnings level was better than we had anticipated, despite the substantial effect of the strong yen and the flooding in Thailand. This was mainly thanks to our strong performance in the production print field and office color MFPs (Multi-functional peripherals), and higher sales, reflecting our efforts since the previous year to bolster our OPS (Optimized Print Services) structure as well as our active approach to global major accounts in the Business Technologies Business. Continued sales momentum of new VA-TAC for increasing viewing angle (hereinafter referred to as "VA-TAC") products in the Optics Business since the beginning of the fiscal year also contributed to higher income.
We did not include the impact from the flooding in Thailand in the operating performance forecasts for the second half we announced previously. We understand the impact for the third quarter was approximately ¥3.0 billion in terms of net sales, and approximately ¥1.5 billion in terms of operating income. Excluding these impacts, the result for the third quarter exceeded our forecasts.
Looking ahead to the fourth quarter of the current fiscal year, operating conditions remain highly uncertain, mainly because of the persistent strength of the yen since last year and concerns about the European economy stemming from the sovereign debt crisis. Nevertheless, in light of our results for the first nine months, and the rising earnings momentum posted in the second and third quarter, we have decided to keep our forecast net sales at ¥780.0 billion, with operating income of ¥40.0 billion and net income of ¥19.0 billion, as we announced on October 28, 2011.
Compared to our previous forecasts, we have raised the assumed exchange rates for the euro by ¥5 for the fourth quarter. As a result, the assumed exchange rates are ¥78 against the US dollar and ¥100 against the euro. In addition, we need to carefully monitor an anticipated slowdown in sales of office equipment, given uncertainty about the European economy. Still, our Group recorded steady sales in Europe for the third quarter, and for now we expect that the market situation in the forth quarter will not change significantly.
Operating income for the third quarter of the fiscal year under review amounted to ¥7.7 billion, up ¥2.0 billion or 36% year on year. The first quarter of the fiscal year began at a slow pace, due to the effects of the Great East Japan Earthquake. However, earnings momentum started to recover from the second quarter, and returned to a year-on-year growth trend in the third quarter. Ultimately our earnings level was better than we had anticipated, despite the substantial effect of the strong yen and the flooding in Thailand. This was mainly thanks to our strong performance in the production print field and office color MFPs (Multi-functional peripherals), and higher sales, reflecting our efforts since the previous year to bolster our OPS (Optimized Print Services) structure as well as our active approach to global major accounts in the Business Technologies Business. Continued sales momentum of new VA-TAC for increasing viewing angle (hereinafter referred to as "VA-TAC") products in the Optics Business since the beginning of the fiscal year also contributed to higher income.
We did not include the impact from the flooding in Thailand in the operating performance forecasts for the second half we announced previously. We understand the impact for the third quarter was approximately ¥3.0 billion in terms of net sales, and approximately ¥1.5 billion in terms of operating income. Excluding these impacts, the result for the third quarter exceeded our forecasts.
Looking ahead to the fourth quarter of the current fiscal year, operating conditions remain highly uncertain, mainly because of the persistent strength of the yen since last year and concerns about the European economy stemming from the sovereign debt crisis. Nevertheless, in light of our results for the first nine months, and the rising earnings momentum posted in the second and third quarter, we have decided to keep our forecast net sales at ¥780.0 billion, with operating income of ¥40.0 billion and net income of ¥19.0 billion, as we announced on October 28, 2011.
Compared to our previous forecasts, we have raised the assumed exchange rates for the euro by ¥5 for the fourth quarter. As a result, the assumed exchange rates are ¥78 against the US dollar and ¥100 against the euro. In addition, we need to carefully monitor an anticipated slowdown in sales of office equipment, given uncertainty about the European economy. Still, our Group recorded steady sales in Europe for the third quarter, and for now we expect that the market situation in the forth quarter will not change significantly.