ISEKI > News Releases

November 18, 2004

ISEKI & CO., LTD.

Supplementary Explanation to the Interim Financial Results

Interim consolidated performance

(Units: billions of yen)

FY 2003
interim
actual

FY 2004
interim
actual

Variance

Forecast at
Aug, 10

Variance

nominal

Net Sales

Operating Income

Ordinary Income

Net Income

74.4

2.5

1.9

1.6

76.6

2.8

2.6

2.0

2.2

0.3

0.7

0.4

2.9

11.0

34.4

24.9

75.5

2.6

2.0

1.6

1.1

0.2

0.6

0.4

(1)

Net Sales were

76.6 billion, up

2.2 billion (up2.9%) on the same period last year.

	As a result of favorable demand for the GEAS-AT series tractors, which underwent their first complete update in ten years, domestic sales, with a focus on agricultural machinery, rose 1.0 billion (up1.5%).
	Overseas sales rose 1.2 billion (up21.6%) on the back of increases in tractor sales in North America and Europe. Sales in Asia rose 0.2 billion thanks to increased sales of heavy combine harvesters targeted at the South Korean market.

(Units:billions of yen)

Sep 2003
actual

Sep 2004
actual

Variance

Agricultural Machinery

Parts and farming implements,Ohters

35.4

33.6

36.3

33.7

0.9

0.1

Domestic subtotal

69.0

70.0

1.0

Export products

Parts

4.5

0.9

6.0

0.6

1.5

-0.3

Overseas subtotal

5.4

6.6

1.2

Total

74.4

76.6

2.2

(Per foreign region)

(Units:billions of yen)

Sep 2003
actual

Sep 2004
actual

Variance

North America

Europe

Asia

Australlia etc.

2.3

1.8

0.3

0.1

3.3

2.1

0.5

0.1

1.0

0.3

0.2

Total

4.5

6.0

1.5

Parts etc.

0.9

0.6

-0.3

Total

5.4

6.6

1.2

(2)

Operating income reached

2.8 billion, an increase of

0.3 billion (up11.0%) on the same period last year. The decline in profitability due to the delay in the completion of the hydroponics facilities during the first quarter, was absorbed by increased profits from increased sales and an improvement to cost percentages due to a cut in costs.

(3)

Ordinary income climbed to

2.6 billion, up

0.7 billion (up34.4%) on the same period last year, driven by a decrease in interest expenses, resulting from a decrease in interest-bearing liabilities.

(4)

Net income for the period rose to

2.0 billion, up

0.4 billion (up24.9%) on the same period last year, due mainly to

0.6 billion of proceeds from the devolution of the credit business operations, and an increase to the adjustment to income taxes, on top of the increase in ordinary income.

Reduction of consolidated interest-bearing liabilities

Due to the proceeds from the June 2004 devolution of the credit business operations being used to fund the repayment of borrowings, the balance of interest-bearing liabilities at the end of this period was

73.2 billion, down

32.8 billion compared to the same time last year. We are moving toward reaching the three-year business plan one year ahead of schedule, and should be on target to reach

62.0 billion by the end of this fiscal period.

(Balance of interest-bearing liabities)

(Units:billions of yen)

Sep 2003
interim
actual

Mar 2004
actual

Sep 2004
actual

Variance
(on the same
period last year)

Mar 2005
target

106.0

78.3

73.2

-32.8

62.0

3.	Forecast for the Fiscal Year Ending March 31,2005

Forecast for the Fiscal Year Ending operating results is the same as the amended forecast announced on August 10.

(Units: billions of yen)

Mar 2004
actual

Mar 2005
forecast

Variance

Net Sales

Operating Income

Ordinary Income

Net Income for the period

153.6

6.4

5.1

3.1

160.0

7.8

6.5

3.5

6.4

1.4

0.4

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