2. Business Results for the First Half of the Fiscal Year ending March 31, 1999
(1) Results of Operation

	Net Sales	Operating Income	Net Income	Net Income per Share
The First Half of the Fiscal Year under review (Apr.1998-Sep.1998) % of Increase (Decrease) from the First Half of the Previous Fiscal Year	Millions of Yen 456,514 ( 13.9%)	Millions of Yen 16,845 27.5%	Millions of Yen 6,031 8.3%	Yen 2.88
The First Half of the Previous Fiscal Year (Apr.1997-Sep.1997)	530,448	13,203	5,566	2.58
The Previous Fiscal Year (Apr.1997-Mar.1998)	1,051,637	28,198	3,026	1.42

Apr.1998-Sep.1998	2,090,886,832
Apr.1997-Sep.1997	2,157,553,498
Apr.1997-Mar.1998	2,124,220,165

September 30, 1998	2,090,886,832
September 30, 1997	2,090,886,832
March 31, 1998	2,090,886,832

Assets	Millions of Yen	Thousands of U.S. Dollars ( Note 2 )
Current assets: Cash and cash equivalents Time deposits and short-term investments Marketable securities Trade receivables: Notes Accounts Subsidiaries and affiliates Allowance for doubtful accounts Inventories: Finished goods Work in process Raw materials and supplies Land held for sale Short-term advances to subsidiaries and affiliates Prepaid expenses and other current assets	28,911 1,076 86,021 16,906 173,533 110,737 (2,172) 38,109 31,856 42,225 208 13,349 6,681	$ 214,161 7,973 637,200 125,232 1,285,437 820,278 (16,089) 282,293 235,977 312,782 1,542 98,888 49,492
Total current assets	547,447	4,055,166
Property, plant and equipment, at cost: Land Buildings Machinery and equipment Construction in progress	85,143 370,377 1,130,806 19,002	630,693 2,743,538 8,376,343 140,758
Accumulated depreciation	1,605,329 (1,160,554)	11,891,332 (8,596,698)
	444,775	3,294,634
Investments and other assets: Investments in and advances to subsidiaries and affiliates Investment securities Long-term loans Others Allowance for doubtful accounts	253,624 50,023 4,086 24,182 (386)	1,878,701 370,547 30,272 179,131 (2,866)
	331,530	2,455,785
Total assets	1,323,753	$ 9,805,585

See Notes to Non-Consolidated Financial Statements.

Liabilities and Shareholders' Equity	Millions of Yen	Thousands of U.S. Dollars ( Note 2 )
Current liabilities: Short-term debt Current portion of long-term debt Trade payables: Notes Accounts Subsidiaries and affiliates Accrued expenses Accrued income taxes Other current liabilities	113,500 67,550 1,821 132,606 53,439 38,557 820 8,348	$ 840,741 500,371 13,490 982,270 395,850 285,614 6,080 61,837
Total current liabilities	416,644	3,086,253
Long-term debt Accrued retirement benefits Other non-current liabilities	436,807 42,091 8,162	3,235,610 311,786 60,467
Total liabilities	903,705	6,694,116
Shareholders' equity: Common stock, 50 par value per share: Authorized - 5,900,000 thousand shares; Issued - 2,090,886 thousand shares Additional paid-in capital Legal reserve Voluntary reserves Unappropriated retained earnings	140,745 163,558 23,387 82,667 9,689	1,042,559 1,211,543 173,242 612,351 71,774
	420,048	3,111,469
Total liabilities and shareholders' equity	1,323,753	$ 9,805,585

See Notes to Non-Consolidated Financial Statements.

	Millions of Yen	Thousands of U.S. Dollars ( Note 2 )
Net sales: Subsidiaries and affiliates Other customers	161,786 294,728	$ 1,198,415 2,183,175
Cost of sales	456,514 354,678	3,381,590 2,627,247
Gross profit Selling, general and administrative expenses	101,836 84,991	754,343 629,563
Operating income	16,845	124,780
Other income (expenses): Interest income Dividend income Gain on sales of marketable and investment securities, net Interest expenses Debt issue expenses Loss on sales and disposals of property, plant and equipment, net Write-down of marketable and investment securities Personnel expenses of employees on secondment chaged by affiliated and unaffiliated companies Loss on recall of Alnert Other, net	719 4,188 203 (6,957) (121) (1,471) (898) (5,837) (726) 2,324	5,330 31,025 1,509 (51,539) (897) (10,897) (6,657) (43,242) (5,379) 17,216
Income before income taxes	8,268	61,249
Income taxes: Current	2,237	16,570
Net income	6,031	44,679
Unappropriated retained earnings at beginning of the year Reversal of reserve for retirement of stock Appropriations: Transfer to legal reserve Cash dividends Transfer to (Reversal of) voluntary reserves, net	3,947 8,500 (628) (6,272) (1,889)	29,241 62,963 (4,652) (46,464) (13,993)
	(8,789)	(65,109)
Unappropriated retained earnings at end of the year	9,689	$71,774
	Yen	U.S. Dollars
Per share: Net income Cash dividends applicable to the year	2.88 0.00	$0.021 0.000

See Notes to Non-Consolidated Financial Statements.

1.	Change of Accounting Policy Personnel Expenses of employees on secondment charged by affiliated and unaffiliated companies are reclassified from operating expenses (selling, general and administrative expenses) to other expenses in order to present operating expenses charged to income more accurately. As a result of this change, Operating income of current interim period is increased by 5,837 million (US$43,242 thousand) while there is no impact on Income before income taxes nor Net Income.
2.	Reclassification of Items Certain items presented in the original financial statements have been reclassified for the convenience of readers outside Japan.
3.	U.S. Dollar Amounts The Corporation maintains its accounting records in Japanese yen. The U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been translated, as a matter of arithmetical computation only, at the rate of 135 to US$1, the approximate exchange rate prevailing in the Tokyo foreign exchange market at the end of September, 1998. This translation should not be construed as a representation that the yen amounts actually represent, or have been or could be converted into U.S. dollars at this or at any other rate.
4.	Contingent Liabilities As of September 30, 1998, the Company was contingently liable as a guarantor for borrowings of 113,920 million (US$843,858 thousand), incurred by its subsidiaries, affiliates, and others.