Consolidated and Non-Consolidated Financial Results
for the Three Month Period Ended January 31, 2008
(First Quarter)
Date:

March 3, 2008

Company:

Tomoe Engineering Co., Ltd. and Subsidiaries(Web Site: http://www.tomo-e.co.jp/index_e.html)

Stock exchange listing:

1st Section, Tokyo Stock Exchange

Head Office:2-2, Osaki 1-chome, Shinagawa-ku, Tokyo, Japan

President:

Minoru Honma

Investor Relations Contacts:

Koichi Karita, Director, Finance and Management Planning, Tel: (03) 5435-6512

Financial Highlights for the First 3-Month Period Ended January 31, 2008:
1. Consolidated Financial Data for the First 3-Month Period Ended Jan. 31, 2008
(1) Results of Operation (Consolidated)

3-month period ended
Jan. 31, 2008
3-month period ended
Jan. 31, 2007
Year ended
Oct. 31, 2007

3-month period ended
Jan. 31, 2008
3-month period ended
Jan. 31, 2007
Year ended
Oct. 31, 2007

Sales
(Millions of yen)

Operating income(Millions of yen)

Recurring income(Millions of yen)

10,733365

384

10,313199

226

50,795

2,444

2,554

Net income(Millions of yen)

Net income (loss) per
share (Yen)

Fully diluted quarterly
earnings per share
(Yen)

15

1.60

―

(223)

(22.37)―1,357

136.00―Shareholders’ equity
ratio (B) / (A) (Percent)Shareholders’ equity
per share (Yen)

53.4

1,614.86

51.2

1,524.16

51.8

1,678.87(2) Financial Condition (Consolidated)
Assets (A)Net assets (B)(Millions of yen) (Millions of yen)
3-month period
30,15016,322
ended
Jan. 31, 2008
3-month period
29,70815,374
ended
Jan. 31, 2007
Year ended
32,33816.951
Oct. 31, 20071

(3) [Cash Flows]

3-month period
endedJan. 31, 2008
3-month period
endedJan. 31, 2007
Year ended
Oct. 31, 2007

Net cash provided(used) by operating
activities(Millions of yen)

Net cash provided(used) by investing
activities(Millions of yen)

Net cash provided(used) by financing
activities(Millions of yen)

Consolidated cash
and cash equivalent(period-end)(Millions of yen)

371

(216)

(683)

1,329

(1,634)

(389)

1,856

1,097

(578)

(623)

1,844

1,873

2. Dividend Status(Record date)

Dividend per share
End ofFull year
the year
(Yen)
(Yen)
35.00
35.00

Year ended
Oct. 31, 2007
Year ended Oct. 31, 2008 35.00(Prospect)

35.00

3. Forecast for the Year ending Oct. 31, 2008 (Consolidated)
Sales
OperatingRecurring income(Millions of yen)income(Millions of yen)
(Millions of yen)
Semiannual
25,2201,490
1,520
Full business year
50,1302,570
2,600
Net income pershare (yen)Semiannual
83.17
Full business year
146.30(Millions of yen)
Net income(Millions of yen)
830
1,460

4. Notes to Financial Information(1) Significant changes in subsidiaries during this term (changes in specific subsidiaries involving changes inthe scope of consolidation): None
(2) Adoption of simplified accounting method: None
(3) Changes in accounting policies: None2

(Reference) Non-Consolidated Data
1. Non-consolidated Financial Data for the First 3-Month Period Ended Jan. 31, 2008
(1) Results of Operation (Non-consolidated)
Sales(Millions of yen)
3-month period ended
9,505
Jan. 31, 2008
3-month period ended
9,222
Jan. 31, 2007
45,941
Yr. ended Oct. 31, 2007

Operating income(Millions of yen)

Recurring income(Millions of yen)

232

292

121
1,953

184
2,117

Net income(Millions of yen)

Net income (loss) per
share (Yen)(26)(2.66)

(184)
1,088

(18.54)109.063-month period ended
Jan. 31, 2008
3-month period ended
Jan. 31, 2007
Yr. ended Oct. 31, 2007

(2) Financial Condition (Non-consolidated)
Assets (A)Net assets (B)(Millions of yen)
(Millions of yen)
3-month period
endedJan. 31, 2008
3-month period
endedJan. 31, 2007
Yr. ended
Oct. 31, 2007

Shareholders’ equity
ratio (B) / (A)(Percent)

Shareholders’ equity
per share(Yen)

26,422

14,96456.6%

1,499.61

26,444

14,37054.3%

1,440.06

28,311

15,63255.2%

1,566.54

2. Forecast for the Year ending Oct. 31, 2008 (Non-consolidated)
Sales
OperatingRecurring income(Millions of yen)income(Millions of yen)
(Millions of yen)
Semiannual
22,6601,190
1,280
Full business year
45,3702,090
2,200
Net income per
share
(Yen)
Semiannual
70.14
Full business year
121.25

3

Net income(Millions of yen)
700
1,210

There is no change to the consolidated financial forecast results announced on December 10, 2007. Forward-looking
statements contained in this material, such as consolidated financial results forecast, are based upon information
currently available and certain assumptions that we believe are reasonable. Actual results could differ materially due tovarious factors. For the underlying assumptions of the forecast results and necessary precautions when using them,please refer to [Qualitative Information and Financial Statements, etc.] (3) Qualitative information on consolidated
earnings forecast" below.
[Qualitative Information and Financial Statements, etc.](1) Qualitative information on consolidated operating results:
In the Machinery & Equipment Business, the private sector remained firm, but sales of machinery and equipmentin the public sector and the overseas sector were weak. As a result in the first quarter the business posted sales of
1,498 million yen, lower than the same period last year, and operating loss of 107 million yen.
In the Chemical Products Business, although the fine chemicals business and advanced materials business were
weak, this was more than offset by the performance of the plastic materials business, whose China businessperformed well, and the industrial materials business, which enjoyed growth in sales of non-combustible construction
materials etc., and the electronic materials business. As a result the Chemical Products Business posted sales of
9,235 million yen, higher than the same period last year, and operating income of 472 million yen in the first quarter.
As a result, the Company's consolidated business results for the three months period ended January 31, 2008 were
10,733 million yen in sales, 365 million yen in operating income, 384 million yen in Recurring income, and 15 million
yen in net income, all higher than the same period last year.
(2) Qualitative information on consolidated financial position:
Total assets at the end of the first quarter decreased by 2,187 million yen (6.8%) compared with the end of theprevious fiscal year, because the current assets decreased by 1,827 million yen due to a decrease in accountreceivables, etc. and the fixed assets decreased by 359 million yen due to revaluation of investment securities, etc.
Total liabilities decreased 1,558 million yen (10.1%) compared with the end of the previous fiscal year due to adecrease in short-term debt etc. Net assets decreased 629 million yen (3.7%) compared with the end of theprevious fiscal year due to a decrease in retained earnings, unrealized gains and losses on marketable securities andinvestments, etc. As a result, shareholders’ equity ratio at the end of this first quarter increased 1.6 percentage
points to 53.4%.
(3) Qualitative information on consolidated earnings forecast:
In the Machinery & Equipment Business, the outlook is far from reassuring because the public sector turned out
severer than expected and raw material prices are expected to continue to increase, but the sales of abrasive grain
recycle unit for China are expected to increase substantially in the overseas sector. Therefore, the earnings should
be around the same level as those in the budget plan at the beginning of the financial year.
In the Chemical Products Business, there are some concerns, such as the delay in starting up some products inthe advanced materials business, etc., but other products are expected to perform well. Therefore, at the moment,
the Chemical Products Business is expected to achieve the planned budget at the beginning of the financial year.

4Consolidated Financial Statement
1-(1) Balance Sheets (Consolidated)(Thousands of yen)
3-month3-monthIncrease &Year ended

period ended

period ended

decrease

Oct. 31, 2007

Jan. 31, 2007

Jan. 31, 2008

1. Cash and deposits

1, 097,180

1,329,792

232,612

1,873,895

2. Trade receivables

14,930,641

16,156,958

1,226,317

18,897,626

3. Inventories

6,673,429

5,891,714(781,714)

4,351,317

4. Deferred tax assets

224,127

278,174

54,046582,629

5. Other current assets

623,247

712,981

89,734

495,752

Allowance for doubtful accounts(19,163)(26,487)(7,323)(30,276)

Total current assets

23,529,460

24,343,133

813,672

26,170,945

2,306,804

2,490,892

2,332,224

Accumulated depreciation(1,320,333)(1,278,011)(1,254,587)

Net

986,471

1,212,880

3,179,793

3,158,967

3,087,055

Accumulated depreciation(2,244,677)(2,251,539)(2,238,012)

Net

935,116

907,428(27,688)

849,0423) Land975,451

970,253(5,197)970,2534) Other fixed assets

964,436

968,835

1,128,064

Accumulated depreciation(816,412)(830,056)(844,855)

Net

148,023

138,779(9,244)283,209

Total tangible fixed assets

3,045,063

3,229,341

184,278

3,180,142

11,202

14,593

3,390

15,223

1,527,350

1,272,397(254,953)

1,580,268

2) Guarantee deposits

512,242

411,365(100,877)

409,7623) Deferred tax assets

22,48025,115

2,634

21,8574) Financial derivatives

495,642

211,156(284,485)

314,6835) Other investments

650,574

781,717

131,142

782,159

Allowance for doubtful accounts(85,193)(137,870)(52,676)(136,592)

Total investment and others

3,123,097

2,563,881(559,215)

2,972,140

Total fixed assets

6,179,363

5,807,817(371,546)

6,167,506

Total assets

29,708,824

30,150,950

442,126

32,338,451

AssetsI. Current assets

II. Fixed assets
1. Tangible fixed assets
1) Buildings

2) Machinery, equipment & vehicles

2. Intangible fixed assets

226,409

1,077,636

3. Investments and others
1) Investments in securities

5

(Thousands of yen)
3-month3-monthIncrease &Year ended

period ended

period ended

decrease

Oct. 31, 2007

Jan. 31, 2007

Jan. 31, 2008

1. Trade-payables

7,816,829

7,677,401(139,428)

7,349,341

2. Short-term debt

4,058,427

3,893,967(164,460)

4,264,912

3. Account payable-others

696,832

530,283(166,549)

743,189

4. Accrued income tax

30,471

49,022

18,550613,263

5. Advance from customers

74,915

189,205

114,289

148,967

6. Accrued employee’s bonuses

398,768

412,705

13,936

1,102,255

7. Accrued officer’s bonuses

14,014

19,917

5,902

68,1008. Allowance for product warranty

118,900

221,332

102,432

236,625

9. Other current liabilities

235,140

281,314

46,173

187,345

13,444,300

13,275,148(169,151)

14,714,001

1. Long-term debt

330,000

115,000(215,000)

90,0002. Accrued pension and severance liabilities

26,32831,217

4,889

32,437

3. Officer’s retirement allowance

165,735

225,290

59,555

214,460

4. Deferred tax liabilities

367,882

182,122(185,760)

336,296

Total long-term liabilities

889,946

553,630(336,315)

673,194

Total liabilities

14,334,246

13,828,779(505,467)

15,387,196

1. Common stock

1,061,210

1,061,210

01,061,210

2. Capital surplus

1,483,410

1,483,410

01,483,410

3. Retained earnings

12,317,328

13,564,393

1,247,064

13,897,737

4. Issued shares reacquired(362,697)(362,934)(237)(362,815)

14,499,251

15,746,078

1,246,826

16,079,542

marketable securities and investments

372,278

242,259(130,019)

436,288

2. Financial derivative gains and losses

293,916

120,570(173,345)

218,722

3. Foreign currency translation adjustment

44,438

5,848(38,590)

19,084

Total revaluation and translation

710,633

368,677(341,955)

674,095

164,693

207,415

42,721

197,617

Total net assets

15,374,577

16,322,171

947,593

16,951,254

Total liabilities, minority interests and net

29,708,824

30,150,950

442,126

32,338,451

Liabilities and Net Assets
Liabilities
I. Current liabilities

Total current liabilities
II. Long-term liabilities

Net assets
I. Shareholders’ capital

Total Shareholders’ capital
II. Revaluation and translation adjustments
1.Unrealized gains and losses on

adjustments
III. Minority interests

assets61-(2) Statements of Income (Consolidated)(Thousands of yen)
Increase &Year ended
decrease
Oct. 31, 2007

3-month3-monthperiod ended

period ended

Jan. 31, 2007

Jan. 31, 2008

I. Sales

10,313,268

10,733,863

420,594

50,795,204

II. Cost of sales

8,499,726

8,727,826

228,100

41,791,074

1,813,542

2,006,036

192,493

9,004,130

1,613,575

1,641,019

27,444

6,559,190

199,967

365,016

165,0492,444,939

1. Interests

1,574

9,068

6,110

2. Dividends

4,241

6,308

61,301

3. Rents

4,483

6,068

21,101

4. Foreign exchange gains

29,22324,820106,272

5. Sundry

14,422

13,12871,232

53,94659,394

1. Interests

18,32819,55785,4092. Discounts on bills of exchange

1,895

2,697

8,269

0

0

9,992

7,483

17,47553,05427,70739,731

12,023

156,725

226,206

384,680

158,4742,554,232

1. Realized gains on property and equipment

0

0

3,184

2. Realized gain on investment securities

0

3,627

0

19,381

14,6658,226

19,381

18,293

0

0

6,726

5,756

3,231

19,6540

13,00000050,000

5. Removal expenses

37,800039,410

6. Impairment losses

0

0

5,197

Extraordinary losses total

43,557

16,231(27,325)

120,989

Income before income taxes

202,030

386,742

184,7112,444,654

Gross profit
III. Selling, general and administrative
Operating income
IV. Other income

Other income total

5,448

266,018

V. Other expenses

3. Commitment fee
4. Sundry
Other expense total
Recurring income
VI. Extraordinary gains

3. Reversal of allowance for doubtful
accounts
Extraordinary gains total(1,088)

11,411

VII. Extraordinary losses
1. Realized loss on property and equipment
2. Written-off losses on property andequipment
3. Provision for allowance for doubtfulreceivables
4. Unrealized losses on investment securities

7

(Thousands of yen)
Increase &Year ended
decrease
Oct. 31, 2007

3-month3-monthperiod ended

period ended

Jan. 31, 2007

Jan. 31, 2008

Current

17,777

17,555

1,032,094

Deferred403,633

340,140

13,783

421,411357,696(63,714)

1,045,878

3,895

13,121

9,225

41,643(223,275)

15,925239,201

1,357,132

Income taxes

Income taxes total
Gains on minority interests
Income from consolidated operations8

1-(3) Consolidated Statements of Changes in Shareholders’ Equity
3-month period ended Jan. 31, 2007

(Thousands of yen)
Shareholders’ equity
Capital surplus
Retained
Issued shares
Total
earnings
reacquired
Shareholders’equityCommonstock
Surplus as ofOct. 31, 2006
Changes during thisquarter
Cash dividend paid
Net income
Issued shares
reacquired
Total amountchangedBalance, end of the
3-month period

1,061,210

1,483,410

12,839,980(362,697)

15,021,902

0
0

0
0

(299,375)(223,275)00(299,375)(223,275)

0
0

0
0

0
(522,651)000(522,651)

1,061,210

1,483,410

12,317,328(362,697)

14,499,251

3-month period ended Jan. 31, 2007
Revaluation and translation adjustments
Unrealized
Financial
Foreign
Total
gains andderivative
currency
revaluation
losses onloss or gaintranslationandadjustment
marketabletranslation
securities andadjustments
investments
Surplus as ofOct. 31, 2006
301,319
205,427
30,480537,226
Changes during thisquarter
Cash dividend paid
0000Net income
0000Issued shares
reacquired
0000
Total (net) amountchanged (except
70,95988,488
13,958173,406
shareholders’equity)Total amount changed
70,95988,488
13,958173,406
Balance, end of the
3-month period
372,278
293,916
44,438710,633

9(Thousands of yen)
Minority
Total net
interests
assets158,595

15,717,725

00(299,375)(223,275)

0

0

6,097

179,503

6,097(343,147)

164,693

15,374,577

3-month period ended Jan. 31, 2008
Commonstock(Thousands of yen)
Shareholders’ equity
CapitalRetained
Issued shares
Total
surplusearnings
reacquired
Shareholders’equity1,483,410
13,897,737(362,815)
16,079,542

Surplus as of Oct. 31, 2007
Changes during this quarter

1,061,210

Cash dividend paid
Net income (loss)
Issued shares reacquired
Total amount changed
Balance, end of the 3-month
period

0
0
0
0

0
0
0
0

(349,269)
15,9250(333,344)

0
0
(119)
(119)

(349,269)
15,925(119)(333,463)

1,061,210

1,483,410

13,564,393(362,934)

15,746,078

3-month period ended Jan. 31, 2008
Revaluation and translation adjustments
Unrealized
Financial
Foreign
Total
gains andderivative
currency
revaluation
losses onloss or gaintranslation
andmarketableadjustment
translation
securities andadjustments
investments
Surplus as ofOct. 31, 2007
436,288
218,722
19,084
674,095
Changes during thisquarter
Cash dividend
paid
0
0
0
0
Net income (loss)
0000Issued shares0000
reacquired
Total (net)amount changed(194,029)(98,151)(13,236)(305,417)(except
shareholders’equity)Total amountchanged(194,029)(98,151)(13,236)(305,417)
Balance, end of the
3-month period
242,259
120,570
5,848
368,677

10(Thousands of yen)
Minority
Total net
interests
assets197,617

16,951,254

000(349,269)
15,925
(119)

9,797

(295,619)

9,797(629,083)

207,415

16,322,171

Year ended Oct. 31, 2007

(Thousands of yen)
Shareholders’ equity
Capital surplus
Retained
Issued shares
Total
earnings
reacquired
Shareholders’equityCommonstock
Surplus as ofOct. 31, 2006
Changes during thisquarter
Cash dividend paid
Net income
Issued shares
reacquired
Total amountchangedBalance, end of fiscal
year ended
Oct. 31, 2007

1,061,210

1,483,410

12,839,980(362,697)

15,021,902

0
0

0
0

(299,375)
1,357,132

00(299,375)
1,357,132

0
0

0
0

0
1,057,757

(118)
(118)

(118)
1,057,639

1,061,210

1,483,410

13,897,737(362,815)

16,079,542

Year ended Oct. 31, 2007
Revaluation and translation adjustments
Unrealized
Financial
Foreign
Total
gains andderivative
currency
revaluation
losses onloss or gaintranslationandadjustment
marketabletranslation
securities andadjustments
investments
Surplus as ofOct. 31, 2006
Changes during thisquarter
Cash dividend paid
Net income
Issued shares
reacquired
Total (net) amountchanged (except
shareholders’equity)Total amount changed
Balance, end of fiscal
year ended
Oct. 31, 2007

(Thousands of yen)
Minority
Total net
interests
assets301,319

205,427

30,480537,226

158,595

15,717,725

0
0

0
0

0
0

0
0

0
0

(299,375)
1,357,132

0

0

0

0

0

(118)

134,169

13,294(11,395)

136,868

39,021

175,890

134,169

13,294(11,395)

136,868

39,021

1,233,529

436,288

218,722

19,084

674,095

197,617

16,951,254

11

1-(4) Statements of Cash Flows (Consolidated)(Thousands of yen)

3-month3-monthIncrease &Year ended

period ended

period ended

decrease

Oct 31, 2007

Jan. 31, 2007

Jan. 31, 2008

I. Operating activities
1.

Net income before income taxes

202,030

386,742

184,7112,444,654

2.

Depreciation and amortization

71,59988,192

16,593

317,2593.

Accrued employees’ bonuses (increase /decrease)(698,466)(689,550)

8,915

5,021

4.

Accrued officers’ bonuses (increase/decrease)(36,774)(48,182)(11,408)

17,311

5.
6.

Allowance for product warranty (increase/decrease)
Accrued pension and severance
liabilities(increase/decrease)

(800)
1,154

(15,293)(1,220)(14,493)(2,374)

116,925
7,263

7.

Officer's retirement allowance (increase/decrease)(63,905)

10,83074,735(15,180)

8.

Allowance for doubtful accounts (increase/decrease)(19,186)(2,510)16,67543,324

9.

Unrealized losses on investment securities

0

0

0

50,00010.

Interest and dividend income(5,815)(15,377)(9,561)(67,412)

11.

Interest expense

18,32819,557

1,229

85,40912.

Foreign exchange loss/profit(23,972)

11,41835,3902,232

13Realized gains on investment securities

0(3,627)(3,627)0

14.

Realized losses on property and equipment

0

0

0

(3,541)

15.

Written-off losses on property and equipment

5,756

3,231

(2,525)

19,65416.

Impairment losses

0

0

0

5,197

17.

Trade receivables (increase/decrease)

1,020,102

2,587,005

18.

Inventories (increase/decrease)(1,637,834)(1,558,621)

79,213

662,10319.

Purchase liabilities (increase/decrease)

176,831418,246

241,414(226,369)

20.

Trade payables (increase/decrease)46,336(166,698)(213,034)

26,23721.

Advances from customers (increase/decrease)36,38940,237

3,848

110,441

22.

Consumption tax, etc. (increase/decrease)(108,839)(36,043)

72,795(64,525)

23.

Others(28,077)(83,390)(55,313)(165,820)(1,045,141)

944,946

1,990,088

359,182

5,670

8,106

2,435

67,101

Sub total

1,566,903 (3,018,088)

24.

Interests and dividends received

25.

Interests paid

(15,346)(21,179)(5,833)(82,927)

26.

Income taxes paid

(579,423)(560,471)

18,951(922,054)(1,634,241)

371,401

2,005,642(578,697)

Net cash provided (used) by operating activities

12(Thousands of yen)
3-month3-monthIncrease &Year ended

period ended

period ended

decrease

Jan. 31,

Jan. 31, 2007

Jan. 31, 2008

(177,655)(237,126)(59,470)(536,038)

0

0

0

8,412

(537)

0

537

(6,491)2007

II. Investing activities
1.

Expenditures for properties and equipment

2.

Proceeds from sales of properties and equipment

3.

Acquisition of intangible assets

4.

Acquisition of investment securities(11,057)(4,515)

6,541(22,024)

5.

Collection of loans receivable

10,778

7,877(2,901)36,754

6.

Loans receivable (increase)(480)(1,220)(740)(4,153)

7.

Guarantee deposits (increase/decrease)(219,063)(1,945)

217,117(117,117)

8.

Other investments (increase/decrease)

8,751

20,67911,92817,271(389,263)(216,251)

173,012(623,386)

2,155,946(358,833)(2,514,780)

2,323,769

Net cash provided (used) in investing activities
III. Financing activities
1.

Short-term debt (increase/decrease)2.

Long-term debt (increase)0

25,00025,000

0

3.

Repayment of long-term debt

0

0

0

(180,000)

4.

Reacquisition of issued shares of stocks

0

(119)

(119)

(118)

5.

Cash dividends paid

(299,375)(349,269)(49,893)(299,375)

1,856,570(683,222)(2,539,793)

1,844,275

28,578(16,030)(44,608)(3,831)(138,356)
1,235,536(544,103)
1,873,895(405,747)
638,359

638,359
1,235,536

1,097,180

1,329,792

232,612

1,873,895

Net cash provided (used) in financing activities
Cash and cash equivalents

IV.

Effect of exchange rate changes

V.
VI.

Cash and cash equivalents (increase/decrease)
Cash and cash equivalents at the beginning ofyear
Cash and cash equivalents at then end of 1st
qtrs/fiscal yr

VII.

13

2. Segment information (Consolidated)(Segment by type of business)
3-month period ended Jan. 31, 2007

(Thousands of yen)
Machinery &Chemical

TotalsDeletion or

Consolidated

Equipment

Products

total

Business

Businesscompany

1,613,698

8,699,570

10,313,268

0

10,313,268

0

0

0

0

0

1,613,698

8,699,570

10,313,268

0

10,313,268

Operating costs

1,693,596

8,419,705

10,113,301

0

10,113,301

Operating profits(79,897)

279,865

199,967

0

199,967

I. Sales and operating income:Sales(1) Sales to unaffiliatedcustomers(2) Internal sales among
segments or amounttransferred
Total

3-month period ended Jan. 31, 2008

(Thousands of yen)
Machinery &Chemical

Total

Deletion or

Consolidated

Equipment

Products

total

Business

Businesscompany

1,498,744

9,235,118

10,733,863

0

10,733,863

0

0

0

0

0

1,498,744

9,235,118

10,733,863

0

10,733,863

Operating costs

1,606,325

8,762,521

10,368,846

0

10,368,846

Operating income(107,580)

472,597

365,0160

365,016

I. Sales and operating income:Sales(1) Sales to unaffiliatedcustomers(2) Internal sales among
segments or amounttransferred
Total

14

Year ended Oct. 31, 2007

(Thousands of yen)
Machinery &Chemical

Total

Deletion or

Consolidated

Equipment

Products

total

Business

Businesscompany

14,547,785

36,247,419

50,795,204

050,795,204

0

0

0

0

0

14,547,785

36,247,419

50,795,204

050,795,204

Operating costs

13,622,448

34,727,816

48,350,264

048,350,264

Operating income

925,336

1,519,602

2,444,939

02,444,939

I. Sales and operating income:Sales(1) Sales to unaffiliated customers(2) Internal sales among segments oramount transferred
Total(Notes)1. Business classification is by aggregate sales classification.
2. Main products and goods in each business:(1) Machinery & Equipment Business: Various types of centrifuge and other machinery(2) Chemical Products Business: Synthetic resin, inorganic materials and other chemical products

15

(Segment by location)
3-month period ended Jan. 31, 2007

(Thousands of yen)
Japan

Asia

Total

Deletion or

Consolidated

total
company
I. Sales and operating income:Sales(1) Sales to unaffiliated customers

9,054,473

1,258,795

10,313,268

0

10,313,268

93,743093,743[93,743]

09,148,216

1,258,795

10,407,012[93,743]

10,313,268

Operating costs

9,008,223

1,200,431

10,208,654(95,353)

10,113,301

Operating income

139,99358,364

198,357

1,610

199,967(2) Internal sales among segments oramount transferred
Total

3-month period ended Jan. 31, 2008

(Thousands of yen)
Japan

Asia

Total

Deletion or

Consolidated

total
company
I. Sales and operating income:Sales(1) Sales to unaffiliated customers

9,395,246

1,338,616

10,733,863

0

10,733,863

99,30910,298109,608[109,608]

0

Total

9,494,556

1,348,915

10,843,471[109,608]

10,733,863

Operating costs

9,210,321

1,267,192

10,477,514[108,608]

10,368,846

Operating income

284,234

81,722365,957[940]

365,016(2) Internal sales among segments oramount transferredYear ended Oct. 31, 2007

(Thousands of yen)
Japan

Asia

Total

Deletion or

Consolidated

total
company
I. Sales and operating income:Sales(1) Sales to unaffiliated customers

45,012,413

5,782,791

50,795,204

050,795,204

338,135

44,480382,616[382,616]

0

Total

45,350,549

5,827,272

51,177,821[382,616]

50,795,204

Operating costs

43,256,299

5,467,317

48,723,617[373,352]

48,350,264

Operating income

2,094,249

359,9542,454,203[9,263]2,444,939(2) Internal sales among segments oramount transferred(Notes)1. Areas included in each country or region are determined based on their degree of proximity.
2. Main country or regions included in the areas other than Japan:
Asia: China, Korea, and Indonesia (Total 3 countries)16Non-consolidated Financial Statement
3-(1) Balance Sheets (Non-consolidated)(Thousands of yen)
Increase &Year ended
decrease
Oct. 31, 2007

3-month period
endedJan. 31, 2007

3-month period
endedJan. 31, 2008

551,395

671,021

119,625

962,875

2. Trade notes receivable

4,653,342

4,133,401(519,940)

4,174,246

3. Trade receivables

8,742,237

10,249,616

1,507,378

12,795,872

4. Inventories

5,421,254

4,573,125(848,128)

3,141,118

5. Deferred tax assets

217,191

248,300

31,109525,664

6. Other current assets

677,038

701,301

24,263533,685

Allowance for doubtful accounts(19,142)(26,552)(7,410)(30,497)

Total current assets

20,243,316

20,550,214

306,897

22,102,965

1) Buildings

881,891

1,095,037

213,145

952,4562) Machinery, equipment & vehicles

551,989

558,665

6,676

488,0173) Land931,080925,882(5,197)925,8824) Other fixed assets

123,464

144,251

20,786

280,5492,488,425

2,723,835

235,4102,646,906

10,136

13,643

3,506

14,252

1) Investments in securities

1,401,439

1,220,897(180,541)

1,528,768

2) Affiliated companies’ stock

483,765

483,7650483,765

3) Investments in capital of affiliated171,075

171,0750

171,075

4) Guarantee deposits

493,985

384,951(109,033)

384,4125) Financial derivatives

495,642

211,156(284,485)

314,6836) Other investments

742,104

800,695

58,591

801,384

Allowance for doubtful accounts(85,193)(137,870)(52,676)(136,592)

Total investment and others

3,702,817

3,134,671(568,145)

3,547,497

Total fixed assets

6,201,379

5,872,150(329,228)

6,208,656

Total assets

26,444,696

26,422,365(22,330)

28,311,621

AssetsI. Current assets
1. Cash and deposits

II. Fixed assets
1. Tangible fixed assets

Total tangible fixed assets
2. Intangible fixed assets
3. Investments and others

companies17

(Thousands of yen)
Year ended
Increase &decrease Oct. 31, 2007

3-monthperiod ended
Jan. 31, 2007

3-monthperiod ended
Jan. 31, 2008

1. Notes-payable

1,233,057

883,589(349,468)

910,097

2. Trade-payables

5,475,262

5,450,317(24,945)

5,215,015

3. Short-term debt

3,000,000

3,000,000

03,020,000

4. Long-term debt to be repaid within 1 year

180,000

180,0000

180,000

5. Accrued expense

617,525

465,720(151,804)

622,921

6. Accrued income tax

7,906

8,567

660

536,690

7. Advances from customers

66,425

128,283

61,858106,056

8. Accrued employee’s bonus

354,466

366,424

11,957

979,406

9. Accrued officers’ bonus

14,014

19,275

5,260

65,985

10. Allowance for product warranty

118,900

221,332

102,432

236,625

11. Other current liabilities

191,487

232,725

41,238151,836

11,259,045

10,956,234(302,810)

12,024,634

1. Long-term debt

270,000

90,000(180,000)

90,0002. Accrued pension and severance liabilities

11,8594,349(7,509)13,836

3. Officer’s retirement allowance

165,735

225,290

59,555

214,460

4. Deferred tax liabilities

367,385

181,862(185,522)

335,977

814,979

501,502(313,477)

654,274

12,074,025

11,457,737(616,288)

12,678,908

1,061,210

1,061,210

01,061,210

1,483,410

1,483,410

01,483,410

1,483,410

1,483,410

01,483,410

230,000

230,0000

230,000

Dividend preparation reserve

250,000

250,0000

250,000

Reserve for deferred fixed assets

30,95629,335(1,621)

29,722

General reserve

11,200,000

11,500,000

300,000

11,200,000

Surplus carried over

(188,403)

410,777

599,181

1,086,175

11,522,553

12,420,113

897,560

12,795,898(362,697)(362,934)(237)(362,815)

13,704,476

14,601,798

897,322

14,977,702

Liabilities and Net Assets
Liabilities
I. Current liabilities

Total current liabilities
II. Long-term liabilities

Total long-term liabilities
Total liabilities
Net assets
I. Shareholders’ capital
1. Common stock
2. Capital surplus(1) Capital reserve
Total Capital surplus
3. Retained earnings(1) Earned reserve(2) Other retained earnings

Total retained earnings
4. Issued shares reacquired
Total Shareholders’ capital18

(Thousands of yen)
Increase &Year ended
decrease
Oct. 31, 2007

3-monthperiod ended
Jan. 31, 2007

3-monthperiod ended
Jan. 31, 2008

372,278

242,259(130,019)

436,288

293,916

120,570(173,345)

218,722

Total revaluation and translation adjustments

666,194362,829(303,365)

655,010

Total net assets

14,370,671

14,964,628

593,957

15,632,713

Total liabilities and net assets

26,444,696

26,422,365(22,330)

28,311,621

Liabilities and Net Assets
II. Revaluation and translation adjustments
1. Unrealized gains and losses on marketablesecurities and investments
2. Financial derivative gains and losses193-(2) Statements of Income (Non-consolidated)(Thousands of yen)
Increase &Year ended
decrease
Oct. 31, 2007

3-monthperiod ended
Jan. 31, 2007

3-monthperiod ended
Jan. 31, 2008

I. Sales

9,222,847

9,505,170

282,32245,941,146

II. Cost of sales

7,613,263

7,787,848

174,584

37,923,512

1,609,583

1,717,321

107,737

8,017,634

1,487,679

1,484,740(2,939)6,064,409

121,904

232,581

110,677

1,953,225

IV. Other income

82,654

92,844

10,190282,016V.

19,82132,793

12,971

117,952

184,736

292,633

107,896

2,117,289

VI. Extraordinary gains

19,571

18,449(1,121)7,600

VII. Extraordinary losses

43,557

16,231(27,325)

109,551

160,750

294,851

134,100

2,015,338

Current

3,471

4,957

1,485

924,918

Deferred342,261

316,409(25,852)

2,057

Income taxes total

345,733

321,366

Income from Non-consolidated operations(184,982)(26,515)Gross profit
III. Selling, general and administrative
Operating income
Other expenses
Recurring income

Income before income taxes
Income taxes

20

926,976
158,467

1,088,362

3-(3) Non-Consolidated Statement of Changes in Shareholders’ Equity
3-month period ended Jan. 31, 2007

(Thousands of yen)
Shareholders’ equity
Capital surplus
Retained earnings

Commonstock

Capital reserve

Surplus as ofOct. 31, 2006
Changes during thisquarter
Cash dividend paid
Net income
Transfer of reserve fordeferred fixed assets
Provision of generalreserve
Total amountchangedBalance, end of the
3-month period ended
Jan. 31, 2007

Other retained earnings
Dividend
Reservepreparation
deferred fixedreserveassetsLegal reserve

1,061,210

1,483,410

230,000

250,000

31,368

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

(411)
0

0

0

0

0

(411)

1,061,210

1,483,410

230,000

250,000

30,9563-month period ended Jan. 31, 2007

Surplus as ofOct. 31, 2006
Changes during thisquarter
Cash dividend
paid (Note)
Net income
Transfer of reservefor deferred fixed
assetsProvision of generalreserve (Note)
Total amountchangedBalance, end of the
3-month period ended
Jan. 31, 2007

(Thousands of yen)
Shareholders’ equity
Issued shares Total
Retained earnings
reacquired
Shareholders’
Total retained
Other retained earnings
capitalGeneralSurplus carried earnings
reserveover
10,300,000
1,195,543
12,006,911(362,697)
14,188,834

0(299,375)(299,375)

0(299,375)00(184,982)
411(184,982)000(184,982)0

900,000(900,000)000900,000(1,383,946)(484,358)

0(484,358)

11,200,000(188,403)

11,522,553(362,697)

13,704,476

21

3-month period ended Jan. 31, 2007

Surplus as of Oct. 31, 2006
Changes during this quarter
Cash dividend paid
Net income
Transfer of reserve fordeferred fixed assets
Provision of generalreserve
Total (net) amountchanged (except
shareholders’ equity)
Total amount changed
Balance, end of the 3-month
period ended Jan. 31, 2007

(Thousands of yen)
Revaluation and translation adjustments
Unrealized gains andFinancial
Total revaluation andTotal netlosses on marketable
derivative loss ortranslation
assetssecurities andgain
adjustments
investments
301,319
205,427
506,746
14,695,581

0
0
0

0
0
0

0
0
0

(299,375)(184,982)
0

0

0

0

0

70,95988,488

159,448

159,448

70,95988,488

159,448(324,910)

372,278

293,916

666,194

14,370,671(Note) This item is the appropriation of earnings approved at the annual shareholders’ meeting held inJanuary 2007.

22

3-month period ended Jan. 31, 2008

(Thousands of yen)
Shareholders’ equity
Capital surplus
Retained earnings

Commonstock

Capital reserve

Surplus as ofOct. 31, 2007
Changes during thisquarter
Cash dividend paid
Net income
Issued sharereacquired
Transfer of reserve fordeferred fixed assets
Provision of generalreserve
Total amountchangedBalance, end of the
3-month period ended
Jan. 31, 2008

Other retained earnings
Dividend
Reserve forpreparation
deferred fixedreserveassetsLegal reserve

1,061,210

1,483,410

230,000

250,000

29,722

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0

0
0

0
0

0
0

(386)
0

0

0

0

0

(386)

1,061,210

1,483,410

230,000

250,000

29,3353-month period ended Jan. 31, 2008

Surplus as ofOct. 31, 2007
Changes during thisquarter
Cash dividend
paid (Note)
Net income
Issued sharereacquired
Transfer of reservefor deferred fixed
assetsProvision of generalreserve (Note)
Total amountchangedBalance, end of the
3-month period ended
Jan. 31, 2008

(Thousands of yen)
Shareholders’ equity
Issued shares
Total
Retained earnings
reacquired
shareholders’
Total retained
Other retained earnings
capitalearnings
GeneralSurplus carried
reserveover
11,200,000
1,086,175
12,795,898(362,815)
14,977,702

0(349,269)(349,269)

0(349,269)

00(26,515)
0(26,515)
0

0
(119)

(26,515)
(119)

0

386

0

0

0

300,000(300,000)000300,000(675,397)(375,784)(119)(375,904)

11,500,000

410,777

12,420,113(362,934)

14,601,798

23

3-month period ended Jan. 31, 2008

Surplus as of Oct. 31, 2007
Changes during this quarter
Cash dividend paid
Net income
Issued sharereacquired
Transfer of reserve fordeferred fixed assets
Provision of general reserve
Total (net) amount changed(except shareholders’equity)Total amount changed
Balance, end of the 3-month
period ended Jan. 31, 2008

(Thousands of yen)

Revaluation and translation adjustments
Unrealized gains andFinancial
Total revaluation
losses on marketable
derivative loss
and translation
securities andor gainadjustments
investments
436,288
218,722655,010

Total net assets

15,632,713

0
0
0

0
0
0

0
0
0

(349,269)(26,515)
(119)

0

0

0

0

0

0

0

0

(194,029)(98,151)(292,180)(292,180)(194,029)(98,151)(292,180)(668,084)

242,259

120,570

362,829

14,964,628(Note) This item is the appropriation of earnings approved at the annual shareholders’ meeting held inJanuary 2008.

24

Year ended Oct. 31, 2007

(Thousands of yen)
Shareholders’ equity
Capital surplus
Retained earnings

Commonstock

Capital reserve

Surplus as ofOct. 31, 2006
Changes during thisyear
Cash dividend paid
Net income
Issued sharereacquired
Transfer of reserve fordeferred fixed assets
Provision of generalreserve
Total amountchangedBalance, end of fiscal
year ended
Oct. 31, 2007

1,061,210

1,483,410

230,000

250,000

31,368

0
0
0

0
0
0

0
0
0

0
0
0

0
0
0

0
0

0
0

0
0

0
0

(1,645)
0

0

0

0

0

(1,645)

1,061,210

1,483,410

230,000

250,000

29,722

Year ended Oct. 31, 2007

Surplus as ofOct. 31, 2006
Changes during thisyear
Cash dividend
paid
Net income
Issued sharereacquired
Transfer of reservefor deferred fixed
assetsProvision of generalreserve
Total amountchangedBalance, end of fiscal
year ended
Oct. 31, 2007

Other retained earnings
Dividend
Reserve forpreparation
deferred fixedreserveassetsLegal reserve(Thousands of yen)
Shareholders’ equity
Retained earnings
Issued shares
reacquired
Total retained
Other retained earnings
earnings
GeneralSurplus carried
reserveover
10,300,000
1,195,543
12,006,911(362,697)

Total
shareholders’capital14,188,834

0(299,375)(299,375)

0(299,375)

001,088,362
0

1,088,362
0

0
(118)

1,088,362
(118)

0

1,645

0

0

0

900,000(900,000)000900,000(109,367)

788,986(118)

788,868

11,200,000

1,086,175

12,795,898(362,815)

14,977,702

25

Year ended Oct. 31, 2007

Surplus as of Oct. 31, 2006
Changes during this year
Cash dividend paid
Net income
Issued sharereacquired
Transfer of reserve fordeferred fixed assets
Provision of generalreserve
Total (net) amountchanged (except
shareholders’ equity)
Total amount changed
Balance, end of fiscal year
ended Oct. 31, 2007

(Thousands of yen)
Revaluation and translation adjustments
Unrealized gains andFinancial
Total revaluation Total net assets
losses on marketable
derivative loss or and translation
securities andgain
adjustments
investments
301,319
205,427
506,746
14,695,581
0
0
0

0
0
0

0
0
0

(299,375)
1,088,362
(118)

0

0

0

0

0

0

0

0

134,969

13,294

148,264

148,264

134,969

13,294

148,264

937,132

436,288

218,722655,010

15,632,713

26