Thank you very much for joining us today despite your busy schedule. On behalf of Toray Group, I would like to express our sincere apologies for all concerning inconveniences caused by the inappropriate identification of certain resin products as receiving certification from a third-party organization. Now, I would like to report Toray's business results for the Q3 ended December 31, 2021, and the business forecast for the fiscal year ending March 2022. Now, I would like to follow the table of contents shown on page 1. I would like to begin with a brief summary of business results for the Q3 ended December 31, 2021. Please turn to page 3.
Consolidated revenue for the nine-month period increased 20.7% to JPY 1,646.9 billion compared with the same period of the previous fiscal year. Core operating income rose 58.3% to JPY 106 billion, and profit increased by JPY 61.4 billion to JPY 89.3 billion. Page four is about special items. Special items for the nine-month period improved by JPY 27.9 billion to -JPY 2.8 billion compared with the same period of the previous fiscal year. Page five is about assets, liabilities, equity, and free cash flow.
As of end of December, total assets stood at JPY 2,963.1 billion, up JPY 114.2 billion from the end of the previous fiscal year, mainly due to increases in trade and other receivables and inventories. Total liabilities rose JPY 1.4 billion from the end of the previous fiscal year to JPY 1,528 billion, mainly due to increases in trade and other payables, while bonds and borrowings declined. Total equity rose by JPY 112.8 billion compared with the end of the previous fiscal year to JPY 1,435.1 billion. Owner's equity was JPY 1,344.6 billion. Interest-bearing liabilities was JPY 941.3 billion, and D/E ratio was 0.7 points.
Free cash flow was positive at JPY 31.5 billion. Page 6 explains about capital expenditures, depreciation, and amortization, and R&D expenditures. Capital expenditures for the nine-month period decreased by JPY 27.5 billion to JPY 66.3 billion on a year-over-year comparison. Meanwhile, depreciation and amortization increased by JPY 3.6 billion to JPY 92.3 billion. R&D expenditures decreased by JPY 0.7 billion to JPY 44.1 billion compared with the same period of the previous fiscal year. This graph on page 7 describes the factor analysis of JPY 39 billion increase in core operating income for the nine-month period on a year-over-year comparison. The difference in quantity was +JPY 71.7 billion, mainly due to increase in sales and production accompanying the recovery in economic activities.
The net change in price was -JPY 20.7 billion due to the rise in raw material prices compared with the same period of the previous fiscal year. We have been working to pass on the rise in raw material prices to the sales price, but this has not been enough to cover the price increase in raw materials. Cost variance, et cetera, was -JPY 15.7 billion, mainly due to increases in operating expenses from increases in logistics costs and expenses associated with the resumption of sales activities. Production fixed costs increased with the recovery in operating rates. The chart on page 8 shows the revenue and core operating income results by segments. Using page 9 and after, I would like to explain the results of each segment. First, Fibers & Textiles.
Revenue of the overall segment increased 17.8% to JPY 631.6 billion compared with the same period of the previous fiscal year. Core operating income rose 26.8% to JPY 35.5 billion. Recovery and demand was seen both in Japan and abroad, which led to a positive difference in quantity, but the net change in price turned negative due to the increase in raw material prices compared to the same period of the previous fiscal year. Cost variance, et cetera, also turned negative with the increase in operating expenses, production fixed costs, and other expenses.
In the apparel applications, some applications continued to be affected by COVID-19, while sports and outdoor applications performed strongly. Meanwhile, in the industrial applications, sales volume of the automotive applications decreased in the Q3 due to the impact of the decline in automotive production volume. Page 10 is the Performance Chemicals segment. Revenue increased 30.4% to JPY 678.1 billion compared with the same period of the previous fiscal year. Core operating income rose 56.6% to JPY 74.6 billion. Demand for automotive and display related applications was generally strong, and the difference in quantity was positive. I would like to explain the conditions of each business on the next page. Demand in the resins business was strong overall, given the rebound from the COVID-19, resumed operations of automobile manufacturers, and the recovery of the Chinese economy.
However, there was an impact from reduction in automotive production in the Q3. Meanwhile, the segment proceeded with passing on the rise in raw material prices to the sales price. The chemicals business saw a recovery in the basic chemicals market. In the films business, while the battery separator films for lithium-ion secondary batteries were affected by the price decline and the reduction in automobile production, polyester films for optical applications and electronic components performed strongly. In the electronic and information materials business, demand for OLED related materials increased. Page 12 is the Carbon Fiber Composite Materials segment. Revenue increased 13.5% to JPY 153.2 billion compared with the same period of the previous fiscal year.
The segment posted core operating loss of JPY 1.9 billion, an improvement of JPY 1.8 billion from the same period a year earlier. Compared to the same period of the previous fiscal year, the segment posted positive difference in quantity due to an increase in sales volume by expanding sales for industrial applications and sports applications, as well as an increase in production volume as a result of a recovery in operating rates. However, the segment was affected by the increase in raw material prices. Core operating income in the Q3 turned positive by JPY 1.7 billion, mainly due to efforts in passing on the rise in raw material prices to the sales price and sales expansion of industrial applications and sports applications. I would like to explain the status of each application on the next page.
Aerospace applications were affected by the decline in the production rate at major customers due to the impact of COVID-19. In sports applications, demand for bicycles, fishing rods, and golf shaft applications for outdoor leisure remained strong, and there was a recovery in demand for indoor leisure such as ice hockey and badminton applications. In terms of regular tow products among the industrial applications, demand for environment and energy related fields led by compressed natural gas tank applications and the automotive applications for super luxury cars in Europe saw a recovery. As for large tow products, shipment of wind turbine blade applications remained strong. On page 14, in the Environment & Engineering segment, revenue increased 8% to JPY 134.6 billion compared with the same period of the previous fiscal year.
Core operating income rose 36.2% to JPY 10.9 billion. In the water treatment business, demand for reverse osmosis membrane and other products grew strongly, while shipments to some regions were affected by the COVID-19. Among domestic subsidiaries in the segment, an engineering subsidiary experienced increases in the shipment of some electronics-related equipment. Page 15 is the Life Science segment. Revenue remained at the same level on a year-to-year comparison at JPY 38.6 billion, while core operating income declined 9.8% to JPY 1.6 billion. In the pharmaceutical business, sales of pruritus treatment REMITCH were affected by the introduction of its generic versions, as well as by NHI drug price revision.
In the medical devices business, shipment of dialyzers for hemodiafiltration grew strongly in Japan, and demand for other medical devices showed a recovering trend as the spread of COVID-19 temporarily eased. Page 16 shows the business results of major subsidiaries and regions. At Toray International, sales of fibers and textiles, resins, films, chemicals, and electronic and information materials increased. At Toray Engineering, shipment of electronics-related equipment increased. At our subsidiaries in Southeast Asia, a recovery trend was seen in the fibers and textiles market, although some apparel applications continued to be affected by COVID-19. In the industrial application, there was an impact from the production reduction of automobiles in the Q3.
In the Performance Chemicals business, ABS resins saw a recovery in demand in the ASEAN market, and the spread remained steady as the sales prices increased due to efforts such as passing on the rise in raw material prices to the sales price and the tightening of the supply-demand balance. At our subsidiaries in China, the Fibers and Textiles business, there were signs of a recovery in the sales of apparel applications. However, there was an impact from the rise in raw material prices and the increase in logistics costs. In the Performance Chemicals business, demand in China remained strong in the resins business, and we worked to pass on the rise in raw material prices to the sales price. The chemicals business performed strongly.
As for our subsidiaries in the Republic of Korea, the Fibers & Textiles business was affected by the rise in raw material prices, and the sales of nonwoven fabrics decreased due to the fall in demand for masks. In the films business, among the Performance Chemicals business, sales of polyester films increased, while there was an impact from the rise in raw material prices and the increase in logistics costs. Battery separator films for lithium-ion secondary batteries were affected by falling sales prices and the production reduction of automobiles. Next, I would like to explain the consolidated business forecast for the fiscal year ending March 2022. Please turn to page 18. The global economy, including Japan, is likely to continue its recovery with the rollout of coronavirus vaccines and progress in economic measures.
However, the outlook is increasingly unclear, giving concerns regarding the impact of the resurgence in infections from variants, soaring raw material and fuel prices, supply chain constraints caused by shortage of parts and labor, logistic congestion, and geopolitical tensions over Ukraine. Taking into consideration its business performance for the nine months ended December 31, 2021, and the business environment, Toray revised its full-year consolidated forecast announced on the ninth of November. It now expects revenue of JPY 2,230 billion, while the company left its forecast of core operating income unchanged at JPY 130 billion, and profit unchanged at JPY 93 billion. These forecasts from January onwards is based on an assumed foreign currency exchange rate of 112 yen to the US dollar. Page 19 shows the consolidated business forecast for the fiscal year ending March 2022 by segment.
Page 20 shows the comparison of core operating income between the previous forecast 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.