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Results Of the First Half Of the Year Reported By Kubota Corporation

25 November 1998

Results Of the First Half Of the Year Reported By Kubota Corporation

    OSAKA, Japan, Nov. 25 -- Kubota Corporation reported today
that its consolidated net sales for the six months ended September 30, 1998
declined 11.0% or 53.3 billion yen year-on-year to 432.8 billion yen.
    Weak sales in the internal combustion engine and machinery sector, hurt by
stagnant replacement demand for farm equipment, as well as weak sales in the
industrial products and engineering sector, except for environmental control
plant due to decreased public works, contributed to the bearish sales in the
domestic market.  Building materials and housing sector sales also registered
a substantial decline reflecting bearish housing investment.
    In the overseas market, strong sales of farm equipment and engines in
North America and Europe and the depreciation of the yen's value boosted sales
in the internal combustion engine and machinery sector.  On the other hand,
the industrial products and engineering sector marked a substantial decline
due to Kubota's withdrawal from the hard-disc business last December as a part
of re-evaluation of the operations.
    As a result, domestic sales totaled 323.7 billion yen, down 14.8% or
56.2 billion yen from a year ago, while overseas sales increased 2.7% or
2.8 billion yen to 109.1 billion yen.  The overseas sales ratio increased
3.4 percentage points to 25.2%.
    Stung by the sales decline, consolidated operating income during the
period shrunk 39.7% or 10,212 million yen to 15,489 million yen.  Consolidated
income before income taxes dropped 45.4% or 12,645 million yen to
15,185 million yen, with consolidated net income declining by 78.9% or
12,186 million yen to 3,258 million yen from the previous year.  Diluted net
income per ADS shrunk to 46 yen from 201 yen in the previous year.