Nov/10/1998

TOYODA AUTOMATIC LOOM WORKS, LTD.
Consolidated Interim Financial Review for FY1999("Chuukan Renketsu Kessan Tanshin")
1. FINANCIAL SUMMARY (Apr/1/1998 - Sep/30/1998)
Millions of yen
FY1999 (1half)
FY1998(4/98 - 9/98)(4/97 - 3/98)

Net sales

291,924572,698

Operating income

15,73235,922

Income before income taxes

16,47036,661

Net income

8,831

20,491

Total assets

629,724

593,003

Shareholders' equity

310,425

304,097

30.69

72.33

1,078.63

1,056.81

Per common share (in yen)
Net income
Shareholders' equityNotes:
1. Interim consolidation is commenced from this period, therefore, no comparison with same period of last year.
2. From this year, new consolidation rule (adopted Feb/20/98) is applied.
For your convenience, the financial data of FY1998 is recalculated in accordance with this new rule.
3. We have 12 consolidated subsidiaries, 17 unconsolidated subsidiaries, and 11 affiliates.
The equity method is applied to 2 companies out of 11 affiliates.
4.Disclosure item and account classification are based on the disclosure rule in Japan.

2. FORECAST FOR FY1999 (Apr/1/1998 - Mar/31/1999)
Millions of yen
FY1999(4/98 - 3/99)

Net sales

570,000

Operating income

29,000

Income before income taxes

26,000Net income

13,000Net income per share (in yen)

45.17

-1-3. CONSOLIDATED BALANCE SHEETSMillions of yen
FY1999 (1half) FY1998(as of 9/30/98) (as of 3/31/98)

ASSETS
Current Assets

Variance

2,923

181,447

178,524

Cash and deposits

55,91857,181(1,263)

Receivables―trade

67,58961,1906,399

Marketable securities

21,56929,071(7,502)Inventories

26,862

21,9094,953

Other current assets10,053

9,861

192

(546)

(691)

145

Less―allowance for doubtful receivables

448,276

414,479

33,797

252,878

220,047

32,831

Buildings and structures

79,93070,528

9,402

Machinery, equipment and vehicles

110,300

86,48523,815Tools, furniture and fixture

12,857

11,602

1,255

Land

30,232

26,7893,443

Construction in progress

19,55824,641(5,083)34-

34

Fixed Assets
Property, Plant and Equipment

Intangible Assets

34

-34

195,363

194,432931

174,065

174,599(534)

Long-term loans

7,386

7,376

10

Long-term prepaid expenses

2,296

1,674

622

Other investments and other assets

11,64910,824

825

(35)

(43)

8

Consolidation difference
Investments and Other Assets
Investments in securities

Less―allowance for doubtful investments

Total Assets

629,724-2-

593,00336,721Millions of yen
FY1999 (1half) FY1998(as of 9/30/98) (as of 3/31/98)

Variance

LIABILITIESCurrent Liabilities

131,597

152,615(21,018)

Payables―trade63,33470,302(6,968)

Short-term bank loans

7,375

4,396

2,979-300(300)

Other payables

17,31834,425(17,107)

Accrued income taxes

4,968

7,786

(2,818)

Accrued expenses

19,204

16,9072,297

Employees' saving deposits

17,634

17,074560

Other current liabilities

1,760

1,424

336

170,032

130,113

39,919Straight bonds

70,30030,00040,300Convertible bonds

75,74875,838(90)Long-term bank loans

3,058

3,464

(406)

Retirement and severance benefits

19,84819,929(81)

Other long-term liabilities

1,077

881

196

Consolidation Difference

2,326

195

2,131

303,956

282,924

21,032

15,342

5,981

9,361

Common Stock40,17840,13345

Capital Surplus

60,67260,62745

Retained Earnings

209,575

203,337

6,238

(1)

(1)

0

310,425

304,097

6,328

629,724

593,00336,721

Current portion of straight bonds

Long-term Liabilities

Total Liabilities
Minority Interests in Consolidated Subsidiaries
SHAREHOLDERS' EQUITY

Treasury Stock at Cost

Total Shareholders' Equity
Total Liabilities and Shareholders' Equity-3-4. CONSOLIDATED STATEMENTS OF INCOME
Millions of yen
FY1999 (1half)
FY1998(4/98 - 9/98)(4/97 - 3/98)

Net Sales
Cost of sales

291,924
256,193572,698

Gross Profit
Selling, general and administrative expenses

35,73019,99774,37838,456

Operating Income
Other Income

15,732
6,687

35,922
10,514

Interest income

492

1,378

Dividend income

3,893

6,898

Other

2,301

2,237

Other Expenses

5,949

9,775

Interest expenses

964

2,329

4,985

7,445

Income before Income Taxes
Income taxes
Minority interests in consolidated subsidiaries

16,4706,940(698)

36,661
15,880(289)

Net Income

8,831

20,491OtherNote: Amortization of consolidation difference is included in selling, general and administrative expenses.
Equity in earnings of affiliates (net loss of 189 million yen for FY1999 1st half) is included in other expenses.

5. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Millions of yen
FY1999 (1half)(4/98 - 9/98)

Balance of Retained Earnings at Beginning of Period
Retained earnings at beginning of period

203,337
195,245

Reclassification of legal reserve to retained earnings

Decrease in Retained Earnings

8,091

2,593

Cash dividends paid

2,302

Bonuses to directors and statutory auditors

207

Decrease due to newly consolidated affiliates under the equity method

83

Net Income
Balance of Retained Earnings at End of Period

-4-

8,831
209,575

498,319

6. SEGMENT INFORMATION(1) Business Segments① FY1999 1st Half (4/98 - 9/98)
Millions of yen
Other

Subtotal

Elimination ofinter-segment
transactions
or Corporate

86,23019,265291,924-

291,924

1,224

-

542

1,766

(1,766)-

187,652

86,23019,807

293,690(1,766)

291,924

178,310

79,38820,358278,057(1,866)276,191

9,341

6,842

(550)

15,632

99

15,732

Assets244,537

77,84553,849376,232

253,491

629,724

Depreciation

12,465

2,429

1,195

16,090(97)

15,992

Capital investment

22,971

6,857

765

30,594(77)

30,517

Automobiles

Industrial
equipment

1. Outside customer sales

186,427

2. Inter-segment transactions
TotalTotal

Net sales

Operating costs and expenses
Operating income② FY1998 (4/97 - 3/98)
Millions of yen
Other

Subtotal

Elimination ofinter-segment
transactions
or Corporate

160,117

46,193572,698-

572,698

4,020

-

1,060

5,081

(5,081)-

370,407

160,11747,253

577,779(5,081)

572,698

Operating costs and expenses

349,683

146,258

45,630541,572(4,796)

536,775

Operating income

20,724

13,858

1,623

36,206(284)

35,922

Assets204,216

69,72943,877

317,822275,181593,003

Depreciation

21,473

4,549

1,958

27,980(22)

27,958

Capital investment

50,918

7,659

3,586

62,163(156)

62,006

Automobiles

Industrialequipment

1. Outside customer sales

366,386

2. Inter-segment transactions
TotalTotal

Net sales

Note: Main products of each segment ―Automobiles … Automobiles, Engines, Car air-conditioning compressors
Industrial equipment … Forklifts, Shovel loaders, Automatic guided vehicles
Other … Looms, Spinning machines, Casting machines-5-(2) Geographical Segments① FY1999 1st Half (4/98 - 9/98)
Millions of yen
JapanNorthAmerica

OtherSubtotal

Elimination ofinter-segment
transactions
or Corporate

Total

Net sales
1. Outside customer sales

233,916

49,155

8,852

291,924-

291,924

2. Inter-segment transactions

8,278

-

238

8,517

(8,517)-Total242,194

49,155

9,091

300,441(8,517)

291,924

Operating costs and expenses

230,353

45,681

8,661

284,696(8,505)276,191

Operating income

11,841

3,474

429

15,744(11)

15,732

Assets

350,992

37,386

9,193

397,573

232,150

639,724② FY1998 (4/97 - 3/98)
In FY1998, both the amounts of the transactions within Japan and the assets belong to Japan were greaterthan 90% of the total amounts of all segments. Therefore, geographical segment information was omitted.

(3) Overseas Sales① FY1999 1st Half (4/98 - 9/98)
Millions of yen
North
America
59,791

Overseas sales

OtherTotal

43,591

103,382
291,924

Total sales
Percentage of overseas sales out of total sales

20.5%

14.9%

35.4%

② FY1998 (4/97 - 3/98)Millions of yen
NorthAmerica
61,675

Overseas sales

OtherTotal

88,741

150,417572,698

Total sales
Percentage of overseas sales out of total sales

10.8%-6-15.5%

26.3%

Nov/10/1998

TOYODA AUTOMATIC LOOM WORKS, LTD.
Non-Consolidated Semiannual Financial Results for FY1999("Chuukan Kessan Tanshin")
1. FINANCIAL SUMMARY (Apr/1/1998 - Sep/30/1998)
Millions of yen
FY1999 (1half) FY1998 (1half)
Variance(4/98 - 9/98)

FY1998(4/97 - 9/97)(4/97 - 3/98)

Net Sales

230,875

248,954(18,079)

506,018

Operating Income

10,62415,754(5,130)30,602

Income before Income Taxes

11,825

17,064(5,239)

31,583Net Income

7,755

10,504(2,749)

19,783

Total Assets

579,226

533,078

46,148558,456

Shareholders' Equity

305,445289,934

15,511300,086

26.95

37.03

(10.08)69.84

1,061.33

1,019.74

41.59

1,042.87

8.00

8.00

-16.00287,796,225

284,320,756

3,475,469

287,751,674

Per Common Share (in yen)
Net Income
Shareholders' Equity
Cash Dividends
Number of Shares Outstanding at End of Period

Note: Disclosure item and account classification are based on the disclosure rule in Japan.

2. FORECASTS FOR FY1999 (Apr/1/1998 - Mar/31/1999)
Millions of yen
FY1999FY1998(4/98 - 3/99)(4/97 - 3/98)

Variance

Net Sales

470,000

506,018(36,018)

Operating Income

22,00030,602(8,602)

Income before Income Taxes

24,00031,583(7,583)Net Income

15,80019,783(3,983)

Net Income per Share (in yen)

54.90

69.84

(14.94)

Cash Dividends per Share (in yen)

16.00

16.00

--1-3. NON-CONSOLIDATED BALANCE SHEETSFY1999 (1half)

Millions of yen
FY1998
Variance

FY1998 (1half)(as of 9/30/98)(as of 3/31/98)

153,321

159,984(6,663)

172,902

Cash and deposits

50,921

54,150(3,229)72,715

Receivables―notes

4,105

1,472

2,633

1,037

Receivables―accounts

53,08453,851(767)

53,640Marketable securities

19,667

26,972(7,305)

22,810Finished goods

1,431

1,431

0

1,807

Raw materials

9578

1768

Work in process

12,334

11,008

1,326

10,581

Supplies

1,880

1,833

47

1,765

Prepaid expenses

289

276

13284

Other receivables

7,145

7,728

(583)

6,968

Other current assets

2,922

1,862

1,060

1,949

Less―allowance for doubtful receivables

(557)

(681)

124

(725)

(as of 9/30/97)

ASSETS

Current Assets

425,904

398,472

27,432360,176

207,156

193,698

13,458

165,904

Buildings

59,58755,842

3,745

55,734Structures

6,055

4,698

1,357

4,721

Machinery and equipment

87,351

76,222

11,12964,903

703

795

(92)

737

Tools, furniture and fixture

9,121

8,765

356

8,942

Land

26,582

24,101

2,481

23,895Construction in progress

17,75523,270(5,515)

6,968

218,748

204,774

13,974194,271

Investments in securities

170,674

170,054620

165,796

Investments in subsidiaries

29,001

16,00013,001

14,925Long-term loans

7,258

7,361

(103)

7,739

Long-term prepaid expenses

2,008

1,498

510

1,550

Other investments and other assets

9,839

9,901

(62)

4,304

Less―allowance for doubtful investments

(34)

(43)

9(45)

Fixed Assets
Property, Plant and Equipment

Vehicles and delivery equipment

Investments and Other Assets

Total Assets

579,226- 2-558,456

20,770533,078

FY1999 (1half)

Millions of yen
FY1998
Variance

FY1998 (1half)(as of 9/30/98)(as of 3/31/98)

LIABILITIESCurrent Liabilities

109,605

133,657(24,052)

148,905

Payables―notes

4,838

5,748

(910)

3,544

Payables―accounts

49,80754,563(4,756)

51,672---4,000
24,000

Other payables

16,851

33,657(16,806)

12,006

Accrued enterprise tax

1,224

1,707

(483)

1,942

Accrued income taxes

3,426

5,175

(1,749)5,934

Accrued expenses

14,687

14,565122

14,905

Advanced received

571

285

286

8

Deposits received

932

898

34

751

17,265

17,056209

16,988164,174

124,71239,462

94,239Straight bonds

70,00030,00040,000-Convertible bonds

75,74875,838(90)

75,845Retirement and severance benefits

18,426

18,874(448)

18,394

273,780

258,369

15,411

243,144

Common Stock40,17840,13345

33,553

Statutory Reserves

70,706

68,7191,987

61,923

Capital surplus

60,67260,62745

54,059Legal reserve

10,033

8,091

1,942

7,864

194,561

191,233

3,328

194,456

Reserve for special depreciation

5370

(17)

70

Reserve for reduction of acquisition costof fixed assets

320337(17)337Reserve for retirement of shares

10,0000

10,00010,000

Other reserves

170,000

168,500

1,500

168,500

Unappropriated retained earnings
at end of period

14,18722,324(8,137)

15,548< 7,755 >< 19,783 >< (12,028) >< 10,504 >Current portion of long-term bank loans
Current portion of straight bonds
Current portion of convertible bonds

Employees' saving deposits

Long-term Liabilities

Total Liabilities(as of 9/30/97)

13,151SHAREHOLDERS' EQUITY

Retained Earnings<Including net income for period>

Total Shareholders' Equity

305,445300,086

5,359

289,934

Total Liabilities and Shareholders' Equity

579,226

558,456

20,770533,078-3-

(NOTES TO NON-CONSOLIDATED BALANCE SHEETS)FY1999 (1half)

Millions of yen
FY1998
Variance

FY1998 (1half)(as of 9/30/98)(as of 3/31/98)

276,399

269,283

7,116

262,029(1) Acquisition cost

5,136

5,281

(145)

5,197

(2) Accumulated depreciation

2,528

2,626

(98)

2,340

(3) Obligations under finance leases

2,608

2,655

(47)

2,857

< 1,138 >< 1,152 >< (14) >< 1,169 >

718

1,365

-

632

233

330(97)322< 122 >

< 177 >< (55) >< 142 >

2,470

2,536

(66)

2,142

892 shares

786 shares

106 shares

727 shares

1101sharesshares287,796,225
287,751,674

shares44,551shares284,320,756(as of 9/30/97)

1. Accumulated depreciation ofproperty, plant and equipment
2. Finance lease which do not transfer
ownership of leased assets to lessees<due within one year>(4) Lease payments for period
3. Operating lease
Obligations under operating leases<due within one year>

4. Contingent liabilities
5. Treasury stock at cost
Number of shares
Amount6. Number of shares outstandingat end of period-4-4. NON-CONSOLIDATED STATEMENTS OF INCOME
Millions of yen
FY1999 (1half) FY1998 (1half)
Variance

FY1998(4/98 - 9/98)(4/97 - 9/97)

230,875

248,954(18,079)

506,018

230,875

248,954(18,079)

506,018

220,250

233,200(12,950)

475,415

Cost of sales

203,690

215,095(11,405)

439,714Selling, general and administrative expenses

16,56018,104(1,544)

35,701

Operating Income

10,62415,754(5,130)30,602Other Income

6,564

5,019

1,545

9,798

Interest income370

393(23)

1,275

Dividend income

4,137

3,966

171

7,012

Other

2,056

659

1,397

1,510

Other Expenses

5,362

3,709

1,653

8,816

Interest expenses

763

1,183

(420)

2,089

4,599

2,525

2,074

6,727

Income before Income Taxes
Income taxes

11,825
4,070

17,064
6,560(5,239)31,583(2,490)11,800Net Income

7,755

10,504(2,749)19,783

5,043-

1,388-

5,043

Retirement of sharesInterim cash dividend
Additions to legal reserve

6,431
-

Unappropriated Retained Earnings
at End of Period

14,187

15,548(1,361)

22,324

12,337

11,880457

24,482

Operating Revenue
Net sales

Operating Expenses

Other

Unappropriated retained earnings
brought forward
Reversal of the accrual for retirement of shares

Depreciation for period-5-(4/97 - 3/98)

9,999
9,999
2,274227

5. BREAKDOWN OF NON-CONSOLIDATED NET SALES(1) Net Sales by Business

FY1999 (1half)(4/98 - 9/98)

Millions of yen
FY1998 (1half)
Variance

FY1998(4/97 - 9/97)(4/97 - 3/98)

Amount%Amount%Amount%Amount%Automobiles

69,89530.3

85,031

34.2(15,136)(17.8)

176,553

34.9

Engines

46,44320.1

45,075

18.1

1,368

3.0

87,57517.3

Car air-conditioning compressors

42,26718.3

40,951

16.4

1,316

3.2

83,07016.4

Castings, etc.

3,921

1.7

3,883

1.6

38

1.0

7,360

1.5

Automobiles

Subtotal

162,52770.4 174,942

70.3(12,415)(7.1)

354,558

70.1

Industrial equipment

53,331

23.1

60,48824.3(7,157)(11.8)

117,311

23.2

Textile machinery

10,260

4.4

9,250

3.7

1,010

10.9

24,797

4.9

Other

4,756

2.14,272

1.7484

11.3

9,349

1.8

Total

230,875

100.0 248,954

100.0(18,079)(7.3)

506,018100.0(2) Overseas Sales by Business

FY1999 (1half)(4/98 - 9/98)

Millions of yen
FY1998 (1half)
Variance

FY1998(4/97 - 9/97)

Amount%Amount%Car air-conditioning compressors

22,30552.8

19,59847.9

Industrial equipment

22,12341.5

21,495

Textile machinery

7,971

77.7

Other62

Total

52,463

Amount(4/97 - 3/98)%

Amount%

2,707

13.8

39,825

47.9

35.5

628

2.9

42,605

36.3

8,009

86.6(38)(0.5)

22,237

89.7

1.3

122

2.9(60)(49.2)

199

2.1

22.7

49,225

19.8

3,238

6.6

104,867

20.7-6-

6. APPRECIATION OF SECURITIESFY1999 (1half)

Millions of yen
FY1998FY1998 (1half)(as of 9/30/98)(as of 3/31/98)(as of 9/30/97)

Book
Value

Market Valuation
Value
ProfitBook
Value

Market Valuation
Value
ProfitBook
Value

MarketValue

Valuation
Profit

324

1,405

1,081

(1) Current
173

Stocks957<including treasury stock at cost>

784

489

3,744

< (0) >

3,255
< (0) >

Bonds---------

Other---------

173

957

784

489

3,744

3,255

324

1,405

1,081

Subtotal(2) Non-current
Stocks145,964 802,804 656,839 142,470 951,420 808,950 142,259 1,029,963 887,704

Bonds---------

Other---------

Subtotal
Total

145,964 802,804 656,839 142,470 951,420 808,950 142,259 1,029,963 887,704
146,138 803,762 657,624 142,960 955,165 812,205 142,583 1,031,369 888,785

Notes: 1. Market value is calculated mainly based on the closing price of Tokyo Stock Exchange.
2. Book value of the securities which were excluded from disclosure above is as follows:
Millions of yen
FY1999FY1998FY1998(1half)(1half)(Current)
Bonds used in repurchase agreements
Commercial paper used in repurchase agreements
Domestic unlisted bonds which mature within one year
Commercial paper
Securities of loan trust(Fixed)Domestic unlisted stocks excluding over-the-counter stocks
Foreign unlisted bonds

7. DERIVATIVESNo derivative transactions.

-7-

4,000
7,996
2,497
4,999

12,988
3,495
4,998
4,999

18,99051,0581,000

41,4591,000

36,3373,495-

1,000