Financial Results for the Third Quarter ended December 31, 2007
(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

February 14, 2008
Company name:

HANWA Co.,Ltd.

Listed stock exchange:
Stock exchange code:

Tokyo, Osaka
8078

Representative:
Enquiries:

Shuji Kita
Tetsuro Akimoto(URL http://www.hanwa.co.jp)
President
Managing Director of Accounting Dept.
TEL 81 - 3 - 3544 - 2190
(Rounded down to millions of yen)

１．Consolidated financial results for the third quarter ended December 31, 2007
(1) Consolidated operating results（％ of change from the same period of previous year）
Net sales
For the third quarter
ended December 31, 2007
ended December 31, 2006
Year ended March 31, 2007

Ordinary income

Net income(Millions of yen)(％)

(Millions of yen)(％)

(Millions of yen)(％)

(Millions of yen)(％)

1,123,253
975,737
1,320,021

15.1
21.4

17,987
16,757
20,8647.3(2.3)

17,05015,883
19,1707.3(1.0)

10,527
9,504
11,42310.8(0.4)

Net income
per share
For the third quarter
ended December 31, 2007
ended December 31, 2006
Year ended March 31, 2007

Operating income

Net income
per share(diluted)

(yen)

(yen)

49.81
44.95
54.03

－－－

(2) Consolidated financial position
Total assets
December 31, 2007
December 31, 2006
March 31, 2007

Shareholders'equity ratio

Net assets

Shareholders' equity
per share(Millions of yen)

(Millions of yen)502,303489,668
476,178

101,033
93,566
98,254

19.9
18.9
20.5

(％)

(yen)

Cash flows from
Investing activities

Cash flows from
Financing activities

474.25438.67461.21(3) Consolidated cash flows situation
Cash flows fromOperating activities
For the third quarter
ended December 31, 2007
ended December 31, 2006
Year ended March 31, 2007

(Millions of yen)

758
(56,000)(36,192)(Millions of yen)

Cash and cash
equivalents at end of year
(Millions of yen)
(Millions of yen)

(5,450)(1,820)(5,955)

4,479
52,07034,325

10,00912,485
10,228

２．Cash dividends（effective date）
Year ended March 31, 2007
Year ending March 31, 2008
Year ending March 31, 2008（estimated）

Interim(yen)
5.00
6.00

Cash dividends per share
Year-end(yen)
7.00

6.00
Note: Breakdown of the year-end dividend of the year ended March 31, 2007

Annual(yen)
12.00

12.00
the ordinary dividend of 5 yen
the commemorative dividend of 2 yen

３．Forecast of consolidated financial results for fiscal year ending March 31, 2008
No change from the forecast of consolidated financial results announced on November 14, 2007.

－１－

HANWA co.,ltd.

Financial Results for the Third Quarter ended December 31, 2007

《Consolidated Balance Sheets》(Rounded down to millions of yen)

Millions of yen
March 31, 2007

December 31, 2007 Increase(Decrease)

AssetsCurrent assets;
Cash and deposits
Trade notes and accounts receivable
Inventories
OthersAllowance for doubtful receivables
Total current assets

10,245259,372
88,22025,344(911)
382,271

10,022
284,02288,48228,098(956)
409,668(223)
24,650
262
2,754
(45)
27,39724,453
16,37840,831
701

24,453
17,53941,992
836

―
1,161
1,161
135

38,167
14,955(749)
52,37393,906476,178

34,234
16,314(743)
49,806
92,634502,303(3,933)
1,359
6(2,567)(1,272)
26,125Current liabilities;
Trade notes and accounts payableShort-term loans payable
Commercial paper
Current portion of bonds payable
Accrued bonuses
OthersTotal current liabilities

160,429
43,141
17,500―1,693
28,330251,095

177,251
58,443
12,00010,0001,329
30,529289,553

16,822
15,302(5,500)10,000(364)
2,199
38,458Long-term liabilities;
Bonds payable
Long-term loans payable
OthersTotal long-term liabilities
Total liabilities

10,000101,950
14,878
126,828
377,924

10,00089,325
12,391
111,716
401,270―(12,625)(2,487)(15,112)
23,34645,651
340,660(109)
86,20545,651
4
48,438(129)
93,965

―
1
7,778
(20)
7,760

11,405
838
(16)
(947)
11,280768
98,254476,178

7,842
22
(16)
(1,584)
6,263
805
101,033
502,303(3,563)
(816)
―
(637)
(5,017)37
2,779
26,125

Fixed assets;
Property and equipment;
Land
OthersTotal property and equipment
Intangible assets
Investments and other assets;
Investment securities
OthersAllowance for doubtful receivables
Total investments and other assets
Total fixed assets
Total assets

Liabilities;

Net assets;
Shareholders' equity;
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments;
Net unrealized holding gains on securities
Deferred hedge profit and loss
Land revaluation difference
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets－２－HANWA co.,ltd.

Financial Results for the Third Quarter ended December 31, 2007

《Consolidated Statements of Income》(Rounded down to millions of yen)

Millions of yen
Third quarter
endedDecember 31,2006

Third quarter
ended
December 31,2007

Increase(Decrease)

Net sales
Cost of sales
Gross profit

975,737
939,547
36,1901,123,253
1,084,716
38,536

147,516
145,169
2,346

Selling, general and administrative expenses
Operating income

19,433
16,757

20,54917,987

1,116
1,230

1,352
879
2,231

1,638
1,567
3,205

286
688
974

2,493
612
3,105
15,883

3,289
853
4,143
17,050

796
241
1,038
1,167

Total extraordinary income
Income before income taxes and minority interest――
15,883316
316
17,367

316
316
1,484

Income, inhabitant & business tax - current
Income tax expense-deferred
Minority interest in net income
Net income

5,842
495
40
9,504

6,370
425
43
10,527528(70)31,023

Other income;Interest and dividend income
OthersTotal other income
Other expenses;
Interest expenses
OthersTotal other expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities of unconsolidated subsidiaries－３－

HANWA co.,ltd.

Financial Results for the Third Quarter ended December 31, 2007

《Consolidated Statements of Cash Flows》(Rounded down to millions of yen)

Millions of yen
Third quarter Third quarter
ended
ended
December 31, December 31,
2006
2007

Increase(Decrease)

Cash flows from operating activities:
Income before income taxes
Depreciation and amortization
Interest and dividend income
Interest expense
Gain on sales of investment securities of unconsolidated subsidiaries
Increase in trade receivables
Increase(decrease) in inventories
Increase(decrease) in trade notes and accounts payable
Other, net
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

15,8831,490(1,352)
2,493―(69,599)(8,408)23,183(11,873)(48,184)
1,436(2,265)(6,987)(56,000)

17,367
1,515(1,638)3,289(316)(25,216)(456)
17,047(1,658)9,932
1,550(2,913)(7,811)758

1,484
25(286)796(316)
44,383
7,952(6,136)
10,215
58,116
114
(648)
(824)
56,758Cash flows from investing activities:
Payment for purchase of property and equipment
Proceeds from sale of property and equipment
Payment for purchase of investment securities
Proceeds from sale of investment securities
Decrease in short - term loans receivable, net
Increase in long - term loans receivableCollection of long-term loans receivable
Other, net
Net cash used in investing activities(1,660)11(2,611)
2,778
(59)
―
87(366)(1,820)(2,549)32(2,665)
562
(812)
(9)
196
(206)
(5,450)(889)
21(54)(2,216)
(753)
(9)
109
160
(3,630)Cash flows from financing activities:
Increase(decrease) in short-term loans, net
Increase in commercial paper, net
Repayments of long-term debt
Proceeds from bonds issue
Payment for cash dividends
Other, net
Net cash provided by (used in) financing activities

38,262
19,000(3,037)―(2,095)(59)
52,0702,832(5,500)(37)
9,950(2,729)(36)
4,479(35,430)(24,500)
3,000
9,950
(634)
23(47,591)

Effect of exchange rate changes on cash and cash equivalents
Net increase(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents from newly consolidated subsidiaries
Cash and cash equivalents at end of year(758)
(6,508)18,985
812,485(6)(219)
10,228―10,009752
6,289(8,757)(8)(2,476)－４－HANWA co.,ltd.

Financial Results for the Third Quarter ended December 31, 2007

《Segment information》
Business segment information
The Companies' operations are classified into five business segments as follows:
Steel: Steel bars and shapes, steel plates and sheets, special steels, wire products, steel pipes,
and steelmaking raw materials
Metals and alloys: Nickel, chromium, stainless scrap and solar cell-related materials and products
Non-ferrous metals: Copper, aluminium, lead, zinc, tin, antimony and other metals
Foods: Frozen seafoods and meat products
Petroleum and chemicals : Petroleum products, chemical products, and cement
Other business: Lumber, machinery, and others
Segment information by business category for the third quarter ended December 31, 2006 and 2007, is as follows:(Rounded down to millions of yen)

Third quarter ended December 31,
2006
Net sales
Costs and expenses
Operating income

Third quarter ended December 31,
2007
Net sales
Costs and expenses
Operating income

Millions of yen
Metals and Non-ferrous

alloysSteel
510,104 123,622
499,417 119,395
10,686
4,226

metals49,65947,718
1,940

Petroleum OtherFoods & chemicals business Total Corporate Consolidated
73,277 177,225 41,849 975,737― 975,737
72,899 175,158 40,394 954,983
3,996 958,980
377
2,066
1,454
20,753 (3,996)
16,757

Millions of yen
Petroleum Other
Metal and Non-ferrous
alloysmetals Foods & chemicals business

Steel
570,091 159,172
558,470 154,356
11,621
4,815

50,31948,271
2,048

68,448 231,795
67,695 229,884
752
1,911

Total Corporate Consolidated
43,426 1,123,253― 1,123,253
42,503 1,101,181
4,084 1,105,266
922
22,071 (4,084)
17,987

Notes:
Corporate costs and expenses mainly consist of expenses of administrative departments.

－５－