| November 20, 2003 |
 |
| ISEKI & CO., LTD. |
Supplementary Explanation
to the Interim Financial Results |
| 1. |
Interim consolidated performance |
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|
| nominal |
% |
| Sales |
| Operating Income |
| Ordinary Profit |
| Net Income for the period |
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(1) |
Sales were steady at  74,400 million. |
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 |
Overseas sales were up by 500 million (up 10%), mostly to
North America. |
|
Domestically, sales and other revenue, other than agricultural machinery,
were down ¥400 million, due to the reorganization and contraction of certain
unprofitable activities that had been implemented the previous year. |
|
| |
|
| (2) |
Ordinary profit was up 50%, to ¥1,900 million. |
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|
Operating income was up 300
million on last period due to cost cutting and the reduction of fixed expenses,
at 2,500 million (up 18%).
200 million
of reduced interest due to a reduction in interest-bearing liabilities was added
to operating income to make ordinary profits rise by 600
million, to be 1,900
million (up 50%). |
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|
|
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(3) |
Net income for the period rose 600 million to 1,600 million
(up 60%) due to the ¥300 million gain made on the devolution of vehicle-leasing
activities and, in part, due to the accounting for income tax adjustments. |
| 2. |
Reduction of consolidated interest-bearing
liabilities |
|
|
|
Interest-bearing liabilities were down 13,900
million on the same period last year, due to a reduction in inventories (down
3,900
million on the same period last year), a reduction in accounts receivable and
the devolution of the vehicle- leasing business.
In August and September 2003, 8,000 million of corporate bonds and debentures
were repaid. |
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|
| Iseki |
| Sales subsidiaries |
| Isec |
| Other companies |
|
| 44,700 |
| 39,800 |
| 29,700 |
| 5,700 |
|
| 40,300 |
| 34,900 |
| 27,200 |
| 3,600 |
|
| - 4,400 |
| - 4,900 |
| - 2,500 |
| - 2,100 |
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We aim to achieve a balance of interest-bearing liabilities of
90 billion or less by the end of the current period. |
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