FOR IMMEDIATE RELEASE
January 28, 2005

FY2004 Third Quarter Consolidated Financial Results(April 1, 2004 to December 31, 2004)

FDK CORPORATION
Listing Code No.6955 (Listing Stock Exchange: The first section of Tokyo Stock Exchange)
URL: http://www.fdk.co.jp
Contact : Corporate Communication Group, Business Strategy & Planning Dept.
E-mail: narishi@fdk.co.jp
1. Items Relevant to Preparation of Quarterly Financial Results(1)Adoption of simplified accounting methods: Yes
Allocation of taxes including corporate tax - adopted the methods used effective tax rate.
(2)Changes in accounting methods: Yes
For the seven consolidated subsidiaries whose accounting periods were different from FDK, provisional
settlement of accounting was made by using FDK's accounting period (from Apr. 1,2004 to Dec. 31, 2004)
and the following financial statement was prepared accordingly.
(3)Changes in scope of consolidation or application of equity method: Yes
1 excluded from consolidated subsidiaries : NANJING FDK CORPORATION
1 newly included affiliate accounted for under the equity method: NANJING JINNING SANHUAN FDK CO.,LTD.
2.Consolidated Operating Results for the Nine-Month Period (from Apr. 1,2004 to Dec. 31, 2004)
a. Consolidated Results of Operations
YenYen(millions)(millions)
Nine months
Nine months
ended
ended
December, 2004
December, 2003
Change(%)
FY2003
Net Sales
75,49675,253+0.3%
102,668
Operating Income
1,617
1,650
Income(Loss) Before Income Taxes
and Minority Interests(651)(8,311)Net Income (Loss)(1,474)(8,755)
Amounts Per Share of Common Stock:
Basic Earnings (Loss)
Diluted Earnings(11.52) yen-- yen--(105.18) yen-

U.S.Dollars(millions)
Nine months
endedDecember, 2004
$725.92$15.55($6.26)($14.17)(11.08 cent)-(Notes)
1. The above operating results other than net sales for the nine months of the previous year and the percentage
of fluctuation between the nine months of this fiscal year are not disclosed since quarterly consolidated operating
result other than net sales have been disclosed from this fiscal year,
2.Figures in this report are rounded to the nearest million yen.
3. All yen figures have been converted to U.S.dollars for convenience only at a uniform rate of $1=104 yen
b. Consolidated Financial Condition

Total Assets
Shareholders' Equity
Shareholders' Equity Ratio
Shareholders' Equity
Per ShareYen(millions)
Nine months
Nine months
ended
ended
December, 2004
December, 2003
71,4852,169
3.00%(14.31)- yen

Yen(millions)

FY200378,8644,203
5.30%
1.58 yen(Notes)
1. As FDK started disclosing quarterly financial results from this fiscal year, equivalent results
and changes for the same period of the previous year are not stated.
2. For the seven consolidated subsidiaries whose accounting periods were different from FDK, provisional
settlement of accounting was made by using FDK's accounting period. Consequently, the adjustment amountof 224 million yen accrued by the calculation period change was deducted from the retained earnings(loss).
3. Shareholders' equity per share was calculated by excluding 4 billion yen obtained by the allocationof new shares to the third party as preferred stocks in the last fiscal year.

c. Consolidated Statements of Cash Flows
Yen(millions)
Nine months
Nine months
ended
ended
December, 2004
December, 2003
Cash Flows fromOperating Activities
Cash Flows from
Investing Activities
Cash Flows from
Financing Activities
Cash and Cash Equivalents,End of Term
Consolidated Subsidiaries
Unconsolidated Subsidiaries
Affiliates (equity method applied only)

Yen(millions)

FY2003

5,741-(1,233)(2,702)-(2,143)(3,495)

-

578

8,853

-

9,098

15 companies- companies
1 companies(Note)
1. As FDK started disclosing quarterly financial results from this fiscal year, equivalent results
and changes for the same period of the previous year are not stated.
3.Reference - FY2004 Consolidated Financial Forecast (April 1, 2004 - March 31, 2005)
Consolidated Earnings ForecastYen(million)
Net Sales
98,000Operating Income
1,500
Net Income(2,700)
Net Income per Share(21.10) yen(Note)
1. Regarding the above forecast, please refer to the separate release of "Announcement of the Revised
Achievement Forecast."
Note for the use of the above forecasted business results.
The forecast described above is based upon information available as of the present time. Actual results
may differ largely from the forecast due to changing conditions, potential risks and other uncertainties.

Consolidated Balance Sheets
Yen (millions)
31-Dec-04

31-Mar-04

AssetsCurrent assets
Cash and time deposit¥ 8,879

Notes receivable-trade

1,420¥ 9,1122,086

Accounts receivable-trade21,946

26,234Inventories

9,298

9,672

Deferred tax assets

198

180

Other current assets

4,017

3,306

(74)

(75)

45,68450,515

Building and structures

9,306

10,034

Other depreciable assets

9,130

11,596

Land

4,378

4,428

226

378

23,04026,436

Intangible assets

763

1,046

Investments and long-term loans
Securities investments

135

131

99

152

1,764
1,998

584
867

¥ 71,485¥ 78,864

¥ 306

¥ 448

Account payable-trade

23,387

23,051

Short-term borrowings

20,02722,744Current portion of long-term debt

12,568

9,614

384

156

Less: Allowance for doubtful receivable
Total current assets
Tangible fixed assets

Construction in progress
Total tangible fixed assets

Deferred tax assets
Other investments and long-term loans
Total investments
Total assets

Liabilities, minority interests and shareholders' equity
Current liabilities
Notes payable-trade

Accrued income taxes
Other current liabilitiesTotal current liabilities
Long-term liabilities
Long-term debt

3,558

4,390

60,23060,403

3,928

8,688

Accrued retirement benefits

4,557

4,116

Other long-term liabilities

6185

8,546

12,889540

1,369

Shareholders' equity
Common stock

19,256

19,256

Capital surplus

13,635

13,635Retained earnings(Deficit)(28,721)(27,023)

Total long-term liabilities
Minority interests in consolidated subsidiaries

Unrealized gains (losses) on securities, net of taxes

12

12(1,993)(20)(1,662)(15)

Total shareholders' equity2,169

4,203

Total Liabilities, minority interestsand shareholders' equity¥ 71,485¥ 78,864

Foreign currency translation adjustments
Treasury stockConsolidated Statements of Operations

Yen (millions)

Net sales

Q3 of FY2004

FY2003(Apr-Dec'04)(Apr'03-Mar'04)¥¥

75,496102,668

Operating costs and expenses
Cost of sales

65,76590,074

Selling, general and administrative expenses

8,114

10,94473,879101,018

1,617

1,650

46

49

Interest charges

(568)

(796)

Other, net (Note)(1,746)(9,214)(2,268)(9,961)(651)(8,311)

Current

650

391

Deferred

4226

692

417

(1,343)(8,728)

(131)

(27)

¥ ( 1,474)¥ ( 8,755)

Operating income (loss)
Other income (expenses)
Interest and dividend income

Income (loss) before income taxes and minority interests
Income taxes

Income (loss) before minority interests
Minority interests in income of consolidates subsidiaries
Net income (loss)

Consolidated Statements of Shareholders' Equity
Yen (millions)
31-Dec-04

31-Mar-04¥ 19,256¥ 13,206-6,050¥ 19,256¥ 19,256¥ 13,635¥ 7,585-6,050¥ 13,635¥ 13,635¥ ( 27,023)¥ ( 18,268)¥ ( 224)-Net income(loss)¥ ( 1,474)(8,755)Ending balance¥ ( 28,721)¥ ( 27,023)¥ 12¥ 410(29)

¥ 12

¥ 12

¥ ( 1,662)¥ ( 846)

(331)

(816)

¥ ( 1,993)¥ ( 1,662)¥ ( 15)¥ ( 12)(5)(3)¥ ( 20)¥ ( 15)

Common Stock:
Beginning balance
Increase from capital stock issued
Ending balance

Capital Surplus:
Beginning balance
Increase in capital surplus from capital stock issued
Ending balance

Retained Earnings(Deficit)
Beginning balance
Net increase(decrease) from change of consolidated accounting period ofconsolidated subsidiaries

Unrealized Gain(loss) on Securities,net of taxes:
Beginning balance
Net increase in unrealized gain(loss) on securities
Ending balance

Foreign Currency Translation Adjustments:
Beginning balance
Net increase in foreign currency transaction adjustment
Ending balance

Treasury Stock:
Beginning balance
Net decrease(increase) Treasury stock
Ending balanceConsolidated Statements of Cash Flows
Yen (millions)Q3 of FY2004

FY2003(Apr-Dec'04)(Apr'03-Mar'04)

Cash flows from operating activities
Income (loss) before income taxes and minority interests¥ ( 651)¥ ( 8,311)

Depreciation and amortization

2,965

4,400(Increase) decrease in receivable-trade

6,066(7,312)(Increase) decrease in inventories

(837)

153

Increase (decrease) in payable-trade

(710)

7,581

Other, net

(29)

3,603

Cash generated from operations

6,804

114

Interest paid

(559)

(854)

4649(550)

(542)

5,741

(1,233)(2,333)(2,917)

Proceeds from sales of tangible fixed assets

74192

Purchase of intangible assets

(10)

(40)

Other, net

(433)

622

(2,702)(2,143)

Proceeds from long-term debt

303

207

Repayment of long-term debt

(1,774)(2,855)

Increase (decrease) in short-term borrowings(1,940)(8,871)

Adjustments to reconcile income before income taxes andminority interests to net cash provided by operating activities

Interest and dividends received
Income taxes paid
Net cash provided by operating activities

Cash flows from investing activities
Purchase of tangible fixed assets

Net cash used in investing activities

Cash flows from financing activities

Proceeds from issuance of new common stock-12,100

(84)

(3)

(3,495)578

Effect of exchange rate changes on cash and cash equivalents

(53)

(495)

Net increase (decrease) in cash and cash equivalents(509)(3,293)

Cash and cash equivalents at beginning of term

Other, net
Net cash provided by (used in) financing activities

9,098

12,391

Increase in cash and cash equivalents from change of consolidated
accounting period of consolidated subsidiaries

440-

Decrease in cash and cash equivalents due to exclusion fromconsolidation(176)-¥ 8,853¥ 9,098

Cash and cash equivalents at end of term

Business Performance and FinancesBusiness Performance Overview
At the beginning of the FY2004, sales of electronic components remained very favorable.
However, slowdown of the sales occurred by the inventory adjustment especially in the flat panel
display market from the second quarter and our sales of the hybrid modules for liquid crystal
panels and plasma display panels were suffered from this slowdown. In addition, the pressure forthe further price reduction from electric and electronic makers was expected early in 2005.
Consolidated net sales for the nine month ended December 31, 2004, the third quarter of theyear ending March 31, 2005, reported 75,496 million yen, which was equivalent to the same term
last year. While the sales of coil devices such as inverter transformers for LCDs and piezoelectric
devices for digital cameras were increased from the same term last year, the sales of plasma
display products were decreased.

Electronic Component Business
The sales of hybrid modules for plasma displays were equivalent to the same term last year
due to the decline in orders from the second quarter and the sales of hybrid modules for theplasma displays were decreased to the same term last year. The sales of switching power supplies
and inverter transformers were increased to the same term last year. For the stepper motors,
sales were largely increased in compact models for cellular phones and digital cameras but
decreased for printers as they shifted to use DC motors which cause little noise in use. The sales
amount of stepper motors as a whole fell short of the same term last year.
According to the above-mentioned situation, the sales of the electronic component businessdecreased 1.6 % from the same term last year, to 57,447 million yen.

Battery Business
Since export sales of alkaline dry cell batteries in the first half of FY2004 had much exceeded
the corresponding term of last year, sales increased 7.1 % from the same term last year to 18,049
million yen. By launching high-grade alkaline battery “G-Plus” in last November, FDK
continuously strengthened to promote high performance alkaline batteries including existing
G-series batteries.

Cash Flow Condition
Net cash provided by operating activities increased 5,741 million yen from the end of the lastfiscal year due to the increase in working capital by improving the efficiency in overallmanagement: FDK strengthened on the debt collection and increased the retained earnings,
though loss before income taxes and minority interests was added.
Net cash used in investing activities decreased 2,701 million yen from the end of the last fiscal
year due to the capital investment in facilities.

Net cash used in financing activities decreased 3,494 million yen from the end of the last fiscal
year due to the payment for redemption of borrowing.
With change of the accounting period of subsidiaries, cash and cash equivalents increased
440million yen from the end of the last fiscal year. As a result of these activities, balance of cashand cash equivalents at the end of the third quarter of FY2004 was 8,853 million yen, 244 million
yen less than the balance at the end of the last fiscal year.