FOR IMMEDIATE RELEASE
July 31, 2008

Consolidated Financial Results for the First Quarter Ended June 30, 2008
(April 1, 2008 to June 30, 2008)

FDK CORPORATION(URL: http://www.fdk.com)
Listing Code No.6955 (Listing Stock Exchange: The First Section of Tokyo Stock Exchange)
Address : Hamagomu Bldg. 5-36-11 Shimbashi, Minato-ku, Tokyo 105-8677
Contact : Corporate Management Group, General Affairs and Management Planning Division
E-mail: niida@fdk.co.jp
The Consolidated Financial Results is unaudited / U.S. GAPP is not applied

1.Consolidated Operating Results for the Three-Months Period Ended June 30, 2008
a. Consolidated Results of Operations

Net Sales

Yen

Yen

(millions)(millions)

U.S.Dollars(millions)Three months

Three months

FY2007,

Three Months

ended June 30,

ended June 30,

ended March 31,

ended June 30,

2008

2007

2008

2008

22,46827,381

113,668$211.96

Operating Income

(241)

(519)

1,909

($2.27)

Income(Loss) Before Income Taxes

(145)

(610)

(2,573)($1.37)

(343)

(735)

(3,105)($3.24)(2.69) yen(5.74) yen(24.28)(2.54 cent)--and Minority Interests
Net Income (Loss)
Amounts Per Share of Common Stock:
Basic Earnings (Loss)
Diluted Earnings-

b. Net Sales byy Business Segment
g
Yen

Yen

(millions)(millions)

U.S.Dollars(millions)Three months

FY2007,

Three months

ended June 30,

ended March 31,

ended June 30,

2008

2008

2008

Electronic Devices

16,46386,325

Batteries

6,005

27,342$56.65

Total

22,468113,668$211.96c. Consolidated Financial Position
Yen

Yen

(millions)(millions)

As of June 30,

As of June 30,

As of March 31,

2008

2007

2008

Total Assets

67,95573,99865,272

Total Net Assets

3,788

6,908

2,571

Shareholders' Equity

3,427

6,143

3,771

Shareholders' Equity Ratio

4.7%

3.4%

3.9%

(60.92) yen(32.42) yen(66.22) yen

Shareholders' Equity
Per Share$155.31

d. Consolidated Statements of Cash Flows
Yen

Yen

(millions)(millions)Three months

Three months

FY2007,

ended June 30,

ended June 30,

ended March 31,

2008

2007

2008

Cash Flows from

361

(393)

990

(439)

(806)

(2,708)

1,103

(658)

2,083

8,691

5,942

7,217

Operating Activities
Cash Flows from
Investing Activities
Cash Flows from
Financing Activities
Cash and Cash Equivalents
at End of Period
Consolidated Subsidiaries

17 companies

Unconsolidated Subsidiaries (equity method applied)- companies

Affiliates (equity method applied only)

1 companies(Notes for the Consolidated Operating Results (from 1.a to 1.d))
1. All amounts less than one million yen have been disregarded.
2. U.S. dollar amounts are translated from yen, for convenience only, at the rate of 106 yen=$1
3.The percentage in this statement presents rate of change compared with the same period last year.

2.Consolidated Financial Forecast for the year ending March 31, 2009
(Million of yen, except per share data)
FY2008Change from FY2007(%)

Net Sales¥112,800(0.8)

Operating Income¥2,80046.7

Net Income

¥300

-

2.35 yen-

Net Income per Share

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.

3. Others(1)Changes in significant subsidiaries during the period: Yes
1 company included in the consolidated subsidiary: FDK MODULE SYSTEM TECHNOLOGY CORPORATION(2)Adoption of simplified accounting methods for quarterly reporting: Yes(3)Changes in accounting policies, procedures, and presentation, etc.
1)Changes resulting from revisions in accounting principles,etc.: Yes
2)Other changes: No(4)Number of shares outstanding (common stock)
1)Number of shares outstanding at the end of periods.
June 30, 2008 : 128,075,884 shares

March 31, 2008: 128,075,884 shares

2)Number of treasury shares
June 30, 2008 : 158,481 shares

March 31, 2008: 156,824 shares3)Weighted average number of shares outstanding during three months ended June 30 of each year.
June 30, 2008 : 127,918,231 shares

June 30, 2007: 127,933,818 shares

Consolidated Balance Sheets
Millions of yen
Q1/FY2008
Jun 30, 2008
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable-other
Income taxes payable
Lease obligations
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Deferred tax liabilities
Lease obligations
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets

FY2007
Mar 31, 2008

8,705
25,460
3,061
1,329
2,500
94
2,233
(27)
43,3587,227
25,717
2,698
1,359
2,073
142
2,923
(26)
42,116

7,345
6,594
1,766
4,287
1,240
283
21,518
585

7,448
6,449
1,786
4,265
241
20,190
569

250
5
45
2,252
(60)
2,493
24,596

245
6
60
2,144
(60)
2,396
23,156

67,95565,272

19,096
31,664
680
2,157
131
328
2,648
56,706

19,69230,809
564
1,713
221
3,264
56,265

434
5,958
6
912
148
7,460
64,167

456
5,821
98
4
54
6,435
62,701

22,756
17,167(36,464)
(31)
3,427

22,756
17,167(36,121)
(31)
3,771

8
(0)
(228)
(220)
580
3,788

6
(0)
(1,248)(1,242)42
2,571

67,95565,272

Consolidated Statements of Operations
Millions of yen
Q1/FY2008
Apr'08-Jun'08
Net sales

22,468

Cost of sales

20,122Gross profit

2,346

Selling, general and administrative expenses

2,587

Operating income (loss)(241)

Non-operating income
Interest income

14

Foreign exchange gains

521

Rent income

9

Other

91

Total non-operating income

636

Non-operating expenses
Interest expenses
Loss on retirement of noncurrent assets

135
6

Amortization of net retirement benefit obligation at transition

319

Other

83

Total non-operating expenses

545

Ordinary income (loss)(150)

Extraordinary income
Gain on sales of noncurrent assets

84

Total extraordinary income

84

Extraordinary loss
Loss on valuation of inventories

79

Total extraordinary loss

79

Income (loss) before income taxes(145)

Income taxes-current

101

Income taxes-deferred

80

Total income taxes

181

Minority interests in income

16

Net income (loss)(343)

Consolidated Statements of Cash Flows
Millions of yen
Q1/FY2008
Apr'08-Jun'08
Net cash provided by (used in) operating activities
Income (loss) before income taxes(145)

Depreciation and amortization

852

Increase (decrease) in provision for retirement benefits

137

Increase (decrease) in allowance for doubtful accounts(0)Interest and dividends income(20)Interest expenses

135

Foreign exchange losses (gains)(58)

Equity in (earnings) losses of affiliates
Loss (gain) on sales of property, plant and equipment
Loss on retirement of noncurrent assets

8
(78)
6

Decrease (increase) in notes and accounts receivable-trade

1,538

Decrease (increase) in inventories(547)

Increase (decrease) in notes and accounts payable-trade(1,896)

Increase (decrease) in accrued expenses(583)

Other, net

1,240

Subtotal

589

Interest and dividends income received

20

Interest expenses paid

(87)

Income taxes paid

(160)

Net cash provided by (used in) operating activities

361

Net cash provided by (used in) investment activities
Payments into time deposits(3)

Purchase of property, plant and equipment(658)

Proceeds from sales of property, plant and equipment

231

Purchase of intangible assets(5)

Purchase of investment securities(1)

Other, net(1)

Net cash provided by (used in) investment activities(439)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable

1,233

Repayment of long-term loans payable(39)

Purchase of treasury stock(0)

Cash dividends paid to minority shareholders(3)

Repayments of finance lease obligations(85)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

1,103
449

Cash and cash equivalents at beginning of year

1,474
7,217

Cash and cash equivalents at end of period

8,691

Consolidated business segment information
Millions of yen

Q1/FY2008 Apr'08-Jun'08
Electronicmaterials

Batteries

Total

Elimination

Consolidated

Net sales
Unaffiliated customers

16,463

6,005

22,468-22,468

-

-

-

-

-

16,463

6,005

22,468-22,468

(470)

228

(241)

-

(241)

Intersegment
Total
Operating income (loss)

Consolidated geographic segment information
Millions of yen

Q1/FY2008 Apr'08-Jun'08
Japan

North
America

Asia

EuropeTotal

Elimination

Consolidated

22,468Net sales
Unaffiliated customers

11,487

9,994

385

601

22,468-Intersegment

2,702

5,056

-

16

7,775

(7,775)-

Total

14,19015,050385

617

30,244(7,775)

22,468

(454)

314

8

(19)

(151)

(89)

(241)

Operating income (loss)

Net overseas sales by customer's geographic location
Millions of yen

Q1/FY2008 Apr'08-Jun'08
Asia

Total sales to foreign customers

10,861

North
America

1,050

Other
Countries

997

Consolidated net sales
Percentage of sales to foreign
customers to consolidated net sales

Total

12,90922,468

48.4%

4.7%

4.4%

57.5%

｢Reference Information ｣Consolidated Statements of Operations
Yen (millions)
Q1/FY2007
Apr'07-Jun'07

Net sales

27,381

Operating costs and expenses
Cost of sales

25,150

Selling, general and administrative expenses

2,750
27,900Operating income (loss)(519)

Other income (expenses)
Interest and dividend income

18

Equity in earnings (losses) of affiliates, net

0Interest charges
Other, net

(171)
62
(91)

Income (loss) before income taxes and minority interests(610)

Income taxes
Current

135

Deferred(14)
121

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

(731)
(4)
(735)

Consolidated Statements of Cash Flows
Yen (millions)
Q1/FY2007
Apr'07-Jun'07

Cash flows from operating activities
Income (loss) before income taxes and minority interests(610)

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

876

Equity in earnings of affiliates, net(0)(Increase) decrease in receivable-trade

1,156(Increase) decrease in inventories(841)

Increase (decrease) in payable-trade(1,958)Other, net

1,393

Cash generated from operations
Interest paid
Interest and dividends received
Income taxes paid
Net cash provided by operating activities

16
(171)
41
(279)
(393)

Cash flows from investing activities
Purchase of tangible fixed assets(841)

Proceeds from sales of tangible fixed assets

1

Other, net

34

Net cash used in investing activities(806)

Cash flows from financing activities
Repayment of long-term debt

(540)

Increase (decrease) in short-term borrowings(117)

Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

(1)
(658)
270

Net increase (decrease) in cash and cash equivalents(1,587)

Cash and cash equivalents at beginning of year

7,529

Cash and cash equivalents at end of year

5,942

Business Results(1) Analysis of Consolidated Business Results
1. Overview
In the first quarter ended June 30, 2008, FDK Group sales declined for LCD-related products.
The decline started in the fourth quarter of the year and continued into this quarter, causing asevere market situation for the FDK Group. Under this severe market environment, FDK closed
a plant in Taiwan which engaged in contract manufacturing of LCD-related products. As a result,sales for the first quarter were 22,468 million yen, a 17.9% decrease from the same period lastyear.
Although sales of high value-added applied material technology products increased and there
was an improvement in operational efficiency throughout the entire operation, including global
plants, through the promotion of production innovation, the decline in the amount of sales had aconsiderable impact on the profits, and operating loss was reduced to 241 million yen (the same
period last year was a loss of 519 million yen). Loss before income taxes was reduced to 145
million yen (the same period last year was a loss of 610 million yen) by posting 84 million yen as
extraordinary income and 74 million yen as an extraordinary loss. Net loss was 343 million yen(the same period last year was a loss of 735 million yen).

2. Electronic Device Business
Sales of multilayer power chip inductors increased from the same period last year due to theirincreased adoption in mobile phones. Sales of coil devices increased from the same period lastyear, especially for power supply makers and domestic LCD television makers. Sales of opticaldevices increased from the same period last year, especially for use on submarine cables. Sales ofsignal processing modules for LCDs decreased from the same period last year due to the decline
in sales prices and termination of contract manufacturing. Sales of backlight inverter modules for
LCDs decreased from the same period last year due to the strategic change of customers to
expand internal procurement.
As a result, sales of the electronic device business were 16,463 million yen, a 24.8 % decrease
from the same period last year.

3. Battery BusinessResponding to the high appreciation of material costs, FDK decided to raise sales prices towholesalers and retailers on sales orders shipping as of July. Regarding sales of the battery
business, sales of lithium batteries decreased from the same period last year. On the other hand,sales of alkaline batteries increased from the same period last year, especially for global markets.
As a result, sales of the battery business were 6,005 million yen, a 9.5% increase from the same
period last year.

(2) Analysis of Financial Condition
Cash Flow Condition
Cash flow from operating activities increased 361 million yen from the beginning of this fiscal
year due to an increase in cash from the decrease in notes and accounts receivable-trade and soon, though there were decreases in cash and cash equivalents caused by the decrease in notes andaccounts payable-trade.
Cash flow from investment activities decreased 439 million yen from the beginning of the fiscal
year due to the purchase of property, plant and equipment.
Cash flow from financing activities increased 1,103 million yen from the beginning of the fiscal
year due to an increase in short-term loans.
As a result, the balance of cash and cash equivalent at the end of June 30, 2008 was 8,691
million yen, an increase of 1,474 million yen from the beginning of the fiscal year.

(3)Forecast for the Fiscal Year Ending March 31, 2009
In general, our sales of electronic devices and batteries are in low gear from the forth quarter tothe following first quarter as the demand for those products are during a time of sluggishness.
However, those demands are tend to be brisk from the second quarter to the third quarter. FDK
forecasts an economic slowdown in this fiscal year and the exchange rate is forecasted to be 100
yen per U.S. dollar.
Although the decrease of LCD related products influenced the total sales, with our extended
sales of value-added products and the weaker yen against the U.S. dollar, we achieved our
expected target for this first quarter in profit and loss. From the second to the third quarter, salesof our products are expected to increase as we can anticipate some increasing factors such as theyear end shopping season.
Therefore, the forecast for the six months ending September 30, 2008 and the fiscal year ending
March 31, 2009 remain the same as announced on April 25, 2008. The exchange rates continue tobe forecast at 100 yen per US dollar
Net Sales

Operating

Net Income (Loss)Net Income (Loss)

Income (Loss)
Million Yen%

Million Yen

Per Share%

Million Yen%

Yen

Six months ending
September 30, 2008

50,500

-

400

-

△700

-

△5.47

Year ending March 31, 2009

112,800

△0.8

2,800

46.7

300

-

2.35