FOR IMMEDIATE RELEASE
January 31, 2006

FY2005 Third Quarter Consolidated Financial Results(April 1, 2005 to December 31, 2005)

FDK CORPORATION
Listing Code No.6955 (Listing Stock Exchange: The first section of Tokyo Stock Exchange)
URL: http://www.fdk.com
Contact : Corporate Communication Group, Business Strategy & Planning Dept.
E-mail: niida@fdk.co.jp
U.S. GAAP is not applied.
1. Items Relevant to the Preparation of the Quarterly Financial Results(1)Adoption of simplified accounting methods: Yes
Criteria for the allocation of taxes including corporate tax - adopted the methods used effective tax rate(2)Changes in accounting methods: No(3)Changes in scope of consolidation or application of equity method: Yes
1 excluded from the consolidated subsidiaries
2. Consolidated Statements of Operations for the Nine-Month Period (from Apr. 1, 2005 to Dec. 31, 2005)
a. Consolidated Statements of Operations
YenYen(millions)(millions)
Nine months
Nine months
FY2004
ended Dec. 31,
ended Dec. 31,
Full Year
2005
2004
Change(%)
Net Sales¥88,436¥75,496+17.1%¥100,441
Operating Income
1,078
1,617
-33.3%
1,542
Income(Loss) Before Income Taxes
and Minority Interests
26(651)(1,721)Net Income (Loss)(572)(1,474)(2,713)
Amounts Per Share of Common Share:
Basic Earnings (Loss)
Diluted Earnings(4.47)yen-(11.52)yen--(21.20)yen-(Notes)1.Figures in this report are rounded to the nearest million yen.
2.U.S. dollar amounts represent translations using approximate exchange rate on December 31, 2005,of yen 118=US$1, and are included solely for the convenience of readers.
b. Consolidated Financial Condition
Yen(millions)

Total Assets
Shareholders' Equity
Shareholders' Equity Ratio
Shareholders' Equity
Per Share

As of Dec. 31,
2005

As of Dec. 31,
2004¥81,247
9,015
11.1%

¥71,485
2,169
3.0%

Yen
(millions)
As ofMar. 31,
2005¥71,366
1,234
1.7%(15.51)yen(14.31)yen(21.61)yen(Note)
Shareholders' equity per share was calculated by excluding 11 billion yen of the preferred shares.

U.S.Dollars(millions)
Nine months
ended Dec. 31,
2005$749.01
9.13
0.22(4.84)(3.79)cent-c. Consolidated Statements of Cash FlowsYen(millions)
Nine months
Nine months
ended Dec. 31,
ended Dec. 31,
2005
2004
Cash Flows fromOperating Activities
Cash Flows from
Investing Activities
Cash Flows from
Financing Activities
Cash and Cash Equivalents
at End of Term

Yen(millions)
FY2004
Full Year¥6,018¥5,741¥3,254(2,435)(2,702)(3,034)(4,085)(3,495)

(462)

9,907

8,853

9,876

3. Reference - FY2005 Consolidated Financial Forecast (April 1, 2005 - March 31, 2006)

Net Sales
Operating Income
Net Income(Loss)Net Income(Loss) per Share(Forecast for FY2005)
Yen(million)¥118,500
1,200(3,500)(27.35)yenchange(%)(FY04 to FY05)+18.0%-22.2%-(Ref. Result of FY2004)
Yen(million)¥100,441
1,542(2,713)(21.20)yenWith regard to the above forecast for the FY2005, please refer to the "Announcement of the Revised
Achievement Forecast" announced on January 31, 2006.
(Note)
The forcast described above is based upon information available as of the present time. Actual results may
differ from the above forecast due to changing conditions, potential risks and other uncertainties.

Consolidated Statements of Operations

Yen (millions)

Net sales¥Q3/FY2005

Q3/FY2004

FY2004(Apr-Dec'05)(Apr-Dec'04)(Apr'04-Mar'05)

88,436¥75,496¥

100,441

Operating costs and expenses
Cost of sales

79,05565,76587,862

Selling, general and administrative expenses

8,303

8,114

11,03787,35873,87998,899

1,078

1,617

1,542

54

4666

Operating income
Other income (expenses)
Interest and dividend income
Equity in earnings (losses) of affiliates, net

31

322

Interest charges

(560)

(568)

(721)

Other, net(577)(1,749)(2,630)(1,052)(2,268)(3,263)26(651)(1,721)

Current

543

650

854

Deferred3542

28

578

692

882

Income (loss) before minority interests(552)(1,343)(2,603)

Minority interests in income of consolidates subsidiaries

(20)

(131)

(110)

¥ ( 572)¥ ( 1,474)¥ ( 2,713)

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

Net income (loss)

Consolidated Balance Sheets
Yen (millions)
31-Dec-05

31-Dec-04

31-Mar-05

AssetsCurrent assets
Cash and time deposit
Notes receivable-trade
Accounts receivable-trade
Inventories
Deferred tax assets
Other current assets
Less: Allowance for doubtful receivable
Total current assets
Tangible fixed assets
Building and structures
Other depreciable assets
LandConstruction in progress
Total tangible fixed assets
Intangible assets
Investments and long-term loans
Securities investments
Deferred tax assets
Other investments and long-term loans
Total investments
Total assets¥ 9,937
1,046
29,046
10,199
98
3,981
(88)
54,219¥ 8,879
1,420
21,946
9,298
198
4,017
(74)
45,684¥ 9,894968
23,072
7,991
82
3,792
(121)
45,678

9,450
9,895
4,427
154
23,926

9,306
9,130
4,378
226
23,040

9,086
9,259
4,393
58
22,796

710

763

724

132
179
2,081
2,392

135
99
1,764
1,998

120
230
1,818
2,168

¥ 81,247¥ 71,485¥ 71,366¥ 236
32,662
24,621
3,090
347
4,015
64,971¥ 306
23,38720,027
12,568384
3,558
60,230¥ 276
21,08929,916
7,506
452
3,226
62,465

1,427
5,202
87
6,716

3,928
4,557
61
8,546

2,306
4,749
78
7,133

545

540

534

22,756
17,135(30,391)
22(483)(24)
9,015

19,256
13,635(28,721)12(1,993)
(20)
2,169

19,256
13,635(29,893)16(1,759)(21)
1,234¥ 81,247¥ 71,485¥ 71,366

Liabilities, minority interests and shareholders' equity
Current liabilities
Notes Payable-trade
Account payable-trade
Short-term borrowings
Current portion of long-term debt
Accrued income taxes
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term debt
Accrued retirement benefits
Other long-term liabilities
Total long-term liabilities
Minority interests in consolidated subsidiaries
Shareholders' equity
Common stock
Capital surplus
DeficitUnrealized gains (losses) on securities, net of taxes
Foreign currency translation adjustments
Treasury stock
Total shareholders' equity
Total Liabilities, minority interestsand shareholders' equity

Consolidated Statements of Cash Flows
Yen (millions)
Q3/FY2005

Q3/FY2004

FY2004(Apr-Dec'05)(Apr-Dec'04)(Apr'04-Mar'05)

Cash flows from operating activities
Income (loss) before income taxes and minority interests¥ 26¥ ( 651)¥ ( 1,721)

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

2,691

2,965

3,846

Equity in earnings of affiliates, net

(31)

(3)

(22)

(Increase) decrease in receivable-trade(4,432)

6,066

4,604

(Increase) decrease in inventories(1,802)

(837)

891

Increase (decrease) in payable-trade

9,585

(710)

(3,401)Other, net

1,111

(26)

761

Cash generated from operations

7,148

6,804

4,958

Interest paid

(566)

(559)

(731)

54

4666

Income taxes paid

(539)

(550)

(752)

Other, net(79)-(287)

6,018

5,741

3,254

(2,367)(2,333)(2,934)174373Purchase of intangible assets

(13)

(10)

(54)

Other, net

(56)

(433)

(419)

(2,435)(2,702)(3,034)7,000--

Proceeds from long-term debt

1303

646

Repayment of long-term debt

(4,754)(1,774)(8,559)

Increase (decrease) in short-term borrowings(6,314)(1,940)

7,527

(18)

(84)

(76)

(4,085)(3,495)(462)

Effect of exchange rate changes on cash and cash equivalents

533

(53)

96

Net increase (decrease) in cash and cash equivalents

31(509)(146)

Interest and dividends received

Net cash provided by operating activities

Cash flows from investing activities
Purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets

Net cash used in investing activities

Cash flows from financing activities
Proceeds from issuance of new common stock

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

Cash and cash equivalents at beginning of year

9,876

9,098

9,098

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

-440

440

Increase in cash and cash equivalents from new consolidation--660

Decrease in cash and cash equivalents due to exclusion from consolidation

Cash and cash equivalents at end of year-(176)(176)¥ 9,907¥ 8,853¥ 9,876

Consolidated Statements of Shareholders' Equity
Yen (millions)
31-Dec-05

31-Dec-04

31-Mar-05¥ 19,256¥ 19,256¥ 19,256

3,500

-

-

¥ 22,756¥ 19,256¥ 19,256¥ 13,635¥ 13,635¥ 13,635

3,500

--

¥ 17,135¥ 13,635¥ 13,635¥ ( 29,893)¥ ( 27,023)¥ ( 27,023)

74---

67

(224)

(224)

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
Increase in earnings from change of overseas subsidiary's functional currency

Increase in earnings from addition of consolidated companies-

Net increase(decrease) in deficit from change of consolidated accounting period ofconsolidated subsidiaries-Net income(loss)(572)(1,474)(2,713)Ending balance¥ ( 30,391)¥ ( 28,721)¥ ( 29,893)

¥ 16

¥ 12

¥ 12

604

¥ 22

¥ 12

¥ 16

¥ ( 1,759)¥ ( 1,662)¥ ( 1,662)

1,276(331)(97)¥ ( 483)¥ ( 1,993)¥ ( 1,759)¥ ( 21)¥ ( 15)¥ ( 15)

(3)

(5)

(6)

¥ ( 24)¥ ( 20)¥ ( 21)

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Business Performance and Finances
Business Performance Overview
During the nine-month period ended December 31, 2005, market of the digital consumer
electronics such as flat panel TVs and mobile telephones were expanded and thus the demandfor electronic devices were increased, though soaring crude oil prices affected the raw materialprices.
In this circumstance, the FDK Group converted PDP business to LCD business, seeking forthe establishment of strong business structure. This conversion caused certain costs and itcould not be covered in the first quarter. In the second and the third quarter, we posted profitson quarterly basis since the sales of new products such as backlight inverter modules for LCDs
increased, supported by the favorable market performance of electronic devices.
Consolidated net sales for the nine months were 88,436 million yen, increased by 17.1 % fromthe same term last year. Since accrued cost posted in the first quarter affected the Company
income, consolidated operating income was 1,078 million yen, decreased by 33.3 % from thesame term last year. Consolidated net loss for the nine months was 572 million yen.
Divisional sales overview would be reported as follows.

Electronic Component Business
Sales of Timing control board for LCDs were increased from the same term last year due tothe increased orders from companies in China and Taiwan. Sales of inverter modules ofbacklights for LCDs were also increased by the orders from Korean companies. The inverter
modules were highly appreciated “for the large display panel” in the market. Sales of hybrid
modules for PDPs and switching power supplies were decreased from the same term last year.
Sales of coil devices were much increased from the same term last year, due to the increased
sales of inverter modules, which were used as inverter transformers of backlights for LCDs as
they were highly appreciated in the market.
Sales of multilayer power chip inductors were increased from the same term last year due tothe extensive sales efforts and expansion of product lineup for the mobile phone market.
Although sales of stepper motors for OA equipment were decreased from the same term lastyear, sales of compact stepper motors for digital cameras and camera phones were increased
from the same term last year.
According to the above-mentioned situation, net sales for nine months of the electronic
component business were 70,725 million yen of 23.1% increase from the same term last year.

Battery BusinessIn domestic market, FDK strengthened sales promotion of the core products such as thehigh-performance alkaline battery “G series” and the higher performance alkaline battery “GPlus”. Overseas sales were slightly decreased, and it was affected by the slow sales of the firstquarter in North America. Consequently, net sales for nine months of this business were
17,711 million yen, decreased by 1.9 % from the same term last year.

Cash Flow Condition
Net cash provided by operating activities for nine months increased by 6,018 million yen due
to the increase of the liquidation of receivables and the increase in the account payables,
though there were some decrease due to the temporally increase in account receivables andinventories accrued by the increased sales.
Net cash used in investing activities decreased by 2,435 million yen resulting frominvestment to the facilities primarily on a module system business for LCDs.
Net cash provided by the financing activities decreased by 4,085 million yen due to theredemption of borrowing, though 7,000 million yen was accrued by the issuance of new shares.
As a result, balance of cash and cash equivalents at the end of the third quarter of FY2005
was 9,907 million yen, increased by 31 million yen from the end of the last fiscal year.