Thank you very much for joining us today despite your busy schedule. On behalf of Toray Group, I would like to take this opportunity to extend my gratitude towards your continued understanding and your interest in the management and business activities. Now, I would like to report Toray's business results for the third quarter, ending December 31st, 2023, and the business forecast for the fiscal year ending March 2024. Now, I would like to follow the table of contents shown on page one. I would like to begin with a brief summary of business results for the third quarter, ending December 31st, 2023. Please turn to page three. Consolidated revenue for the nine-month period decreased 3.8% compared with the same period a year earlier to JPY 1,829.4 billion.
Operating income decreased 4% to JPY 77.2 billion, and profit decreased 38.8% to JPY 45.7 billion. Page four is about special items. Special items for the nine-month period worsened by JPY 24 billion to negative JPY 5.8 billion, compared with the same period of the previous fiscal year. Page five is about assets, liabilities, equity, and free cash flow. As for financial condition at the end of December 2023, both assets and liabilities were affected by the increase in translated yen amount of overseas subsidiaries because of the depreciation of the yen. Total assets stood at JPY 3,388.4 billion, up JPY 194.3 billion from the end of the previous fiscal year, due primarily to increases in trade and other receivables, inventories and tangible fixed assets.
Total liabilities increased JPY 67.4 billion from the end of the previous fiscal year to JPY 1,625.6 billion, owing mainly to increases in bonds and borrowings. Total equity increased by JPY 127 billion compared with the end of the previous fiscal year to JPY 1,762.8 billion. Owner's equity was JPY 1,655.9 billion. Interest-bearing liabilities was JPY 998.1 billion, and the DE ratio was 0.6. Free cash flow was positive at JPY 19.3 billion. Page six explains about the capital expenditures, depreciation and amortization, and R&D expenditures. Capital expenditures for the nine months increased by JPY 26.6 billion to JPY 95 billion on a year-to-year comparison.
Meanwhile, depreciation and amortization increased by JPY 1.3 billion to JPY 99 billion. R&D expenditures increased by JPY 0.8 billion to JPY 50.2 billion compared with the same period of the previous fiscal year. The table on page seven describes revenue and operating income by segment. In addition, the graph on this page shows the factor analysis of JPY 3.3 billion decrease in operating income for the nine months on a year-to-year comparison. The difference in quantity was -JPY 6.6 billion, due to decrease in production and sales volume, mainly in the performance chemicals segment.
The net trading price was a plus JPY 15.7 billion compared with the same period of the previous fiscal year, due mainly to maintenance and expansion of spread, in addition to proceeding passing on cost increases to sales prices amid a downward trend in raw material prices. Cost variance, et cetera, was minus JPY 13.4 billion, mainly due to increase in fixed costs. Using page eight and after, I would like to explain the results of each segment. First, fibers and textiles. Revenue of the overall segment decreased 5% to JPY 745.4 billion compared with the same period a year earlier, and operating income increased 10.7% to JPY 43.8 billion. Apparel applications were impacted by worsening market conditions, and hygiene material applications were sluggish from the worsening supply-demand balance.
Industrial applications maintained a recovery trend on the back of continued demand recovery in automobile applications and expansion in EV applications. Page nine is the performance chemicals segment. Revenue decreased 5.5% to JPY 659.6 billion compared with the same period a year earlier, and operating income decreased 18.8% to JPY 24.3 billion. I would like to explain the conditions of each business on the next page. In the resins and chemicals business, given the impact of demand decline in the Chinese market and other factors, while automobile applications in Japan showed signs of improvement. In the films business, the impact of inventory adjustments persisted in supply chains for electronic parts. In the electronic information materials business, demand for OLED related materials and circuit materials saw some recovery. Page 11 is the carbon fiber composite materials segment.
Revenue decreased 0.9% to JPY 209.3 billion compared with the same period a year earlier, and the segment posted operating profits of JPY 11.4 billion, 3.7% decrease from the same period a year earlier. I would like to explain the status of each application on the next page. In the aerospace applications, the production rate of commercial aircraft at the major customer has steadily recovered. The sports applications were slow due to the full-fledged inventory adjustments, mainly in general purpose products for outdoor leisure. The wind turbine blade applications entered into an adjustment phase, and demand for the industrial applications, including pressure vessels, softened.
Page 13, in the environment and engineering segment, revenue increased 5.7% to JPY 165 billion compared with the same period a year earlier, and the operating income increased 13.4% to JPY 14.6 billion. In the water treatment business, shipment to the U.S. and China, the two major markets for reverse osmosis membranes, was strong. Further, sales of a construction subsidiary in Japan were also strong. Page 14 is the life science segment. Revenue decreased 4.5% to JPY 38.4 billion compared with the same period a year earlier, and operating income decreased by JPY 1.4 billion to -JPY 0.8 billion.
In the pharmaceutical business, sales of oral antipruritic drug REMITCH were affected by the introduction of its generic versions and the NHI drug price revision, and sales of orally active prostacyclin derivative DORNER were affected by inventory adjustment overseas. In the medical devices business, although sales of dialyzers were affected by the soaring prices of raw materials and fuels, shipments of dialyzers for hemodiafiltration in Japan was strong. Page 15 shows the business results of major subsidiaries of the region. At Toray International, sales of fibers and textiles, resins, chemicals, and films decreased. At subsidiaries in Southeast Asia, in the fibers and textiles business, apparel applications were affected by the worsening market conditions, while in the industrial applications, automotive applications were on the recovery trend.
The performance chemicals business, mainly in resins business, was affected by the sluggish Chinese market conditions, but the spread showed a trend toward improvement. At our subsidiaries in China, in the fibers and textiles business, the apparel applications were affected by the sluggish market conditions in the U.S. and Europe. However, domestic sales were strong. In the industrial applications, automotive applications showed a recovery trend. The performance chemicals business was affected by the demand decrease in resin products. As for our subsidiaries in the Republic of Korea, in the fibers and textiles, supply and demand balance of nonwoven fabric worsened. Meanwhile, in the performance chemicals business, sales of film and electronic information material products expanded. Next, I would like to explain a consolidated business forecast for the fiscal year ending March 2024. Please turn to page 17.
The pace of recovery in the global economy is expected to remain slow due to factors such as the high interest rates in the U.S. and Europe, dampening consumer spending and capital investment, and the slow recovery in the Chinese economy. The Japanese economy is also expected to show a gradual recovery. However, the prolonged real estate recession in China, unstable prices of primary commodities, including food and energy, slowdown in consumption in the U.S. and Europe owing to the delay in start of interest rates cut and foreign exchange fluctuations caused by a change in the Bank of Japan's monetary policy are among downward risks for the economy in Japan and abroad.
For the fiscal year ending March 31st, 2024, Toray revised its full year consolidated forecast announced on November 8th, 2023, taking into consideration its business performance for the nine months of the fiscal year and the changes of business environment. It now expects revenue of JPY 2,470 billion, operating income of JPY 105 billion, and a profit of JPY 58 billion. This forecast from January onward is based on an assumed foreign currency exchange rate of JPY 140 to the US dollar. Page 18 shows the consolidated business forecast for the fiscal year ending March 2024 by segment. Page 19 shows a comparison of operating income between the forecast announced on November 8th and the new forecast, with breakdowns into segments. The factors behind the differences are shown on the right side of the table.
This concludes my presentation. Thank you very much.