Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of Change (%)	Factors
Sales	48,800	55,794	(12.5)	-
Operating income	573	2,760	(79.2)	-While the Company worked to substantially reduce fixed expenses, profit decreased because the Company could not make up for a decline in income caused by sudden and significant decrease in demand.
Ordinary income	168	2,588	(93.5)
Net income	(1,549)	1,005	-	-

Business in Japan
-The Company constructed Kitakami Area Technical Center in Kitakami city, Iwate prefecture.

-The Company constructed Kita Ibaraki Plant No.2 for formed and fabricated materials in Kita Ibaraki city, Ibaraki prefecture.

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
R&D Expenditure	396	351	302

R&D Structure
-At its Kitakami Area Technical Center, the Company conducted R&D activities by introducing state-of-the-art facilities for developing materials and conducting functionality evaluation testing for higher-output diesel engine components.

-In Tsuchiura area, the Company conducted R&D activities for vehicles and construction machinery components.

Capital Investment

(in millions of JPY)

	FY2008	FY2007	FY2006
Capital Expenditure	Approx. 8,900	Approx. 4,200	Approx. 2,800

Investments in Japan
Kitakami Area Technical Center
-The Company constructed Kitakami Area Technical Center in Kitakami city, Iwate prefecture, with a total investment of 1 billion 33 million yen. The technical center provide state-of-the-art facilities for developing materials and conducting functionality evaluation testing for higher-output diesel engine components.

Kita Ibaraki Plant No.2 for formed and fabricated materials
-The Company constructed Kita Ibaraki Plant No.2 for formed and fabricated materials in Kita Ibaraki city, Ibaraki prefecture, to reinforce capacity for casting production and to streamline production, with a total investment of 4 billion 189 million yen.

Other investments
-The Company invested a total of 3 billion 761 million yen mainly in renovating its casting equipment and enhancing processing facilities.