3rd Quarter Results

Maruwa Co Ld
07 February 2008




                                                                                             7 February 2008
                                                                                            MARUWA CO., LTD.
                                   3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN

                  Consolidated financial results for the third quarter of Fiscal 2008

MARUWA CO., LTD. today announced its consolidated financial results for the third quarter of Fiscal
2008 < 1 April 2007 - 31 December 2007 > as follows;

*The financial statements are prepared in conformity with the accounting principles generally accepted
in Japan.
*Consolidated subsidiaries:10 companies  (Maruwa (Malaysia) Sdn. Bhd., Taiwan Maruwa Co., Ltd., MARUWA
Electronics (Taiwan) Co., Ltd., Maruwa Europe Ltd., Maruwa America Corp., Maruwa Korea Co., Ltd., Maruwa
(Shanghai) Trading Co., Ltd., MARUWA QUARTZ Co., Ltd., MARUWA SHOMEI Co., Ltd., and Hokko Denshi Co., Ltd.)

1. Summary of Consolidated Financial Results
(1) Summary of consolidated operating results
                                                                                            JPY million
                                  3rd Quarter       3rd Quarter        Change %             (Reference)
                                 1 April - 31 1 April - 31 Dec.                          For year ended
                                         Dec.
                                         2006              2007                           31 March 2007
Net sales                              15,407            15,102           -2.0%                  21,062
Operating income                        1,311             1,227           -6.4%                   1,924
Income before income taxes              1,413             1,342           -5.0%                   1,912
Net income                                962               896           -6.9%                   1,334

Net income per share:                                                                               JPY
  Basic                                 87.87             82.87           -5.7%                  122.04
  Diluted                               87.41             82.62           -5.5%                  121.45

(2) Summary of consolidated financial
condition
                                                                                            JPY million
                                As of 31 Dec.     As of 31 Dec.        Change %             (Reference)
                                         2006              2007                     As of 31 March 2007
Total Assets                           32,833            33,594            2.3%                  33,872
Total net assets                       27,553            28,447            3.2%                  27,907
Equity ratio                            83.9%             84.7%           +0.8%                   82.4%
                                          JPY
Net assets per share                 2,526.97          2,633.87            4.2%                2,572.66

2. Outlook for fiscal 2008 ending 31 March 2008 (reference)
                                  JPY million
                                    Full year          Change %
Net sales                              21,280              1.0%
Operating income                        2,120             10.2%
Net income                              1,400              4.9%
Net income per share                   129.43

* The forecasts stated above are based on currently available information.  Actual results may differ
from these forecasts due to various factors.


Review of Operations



1. Review of Operations

Consolidated net sales for the third quarter of this fiscal year were 15,102
million yen, down 2.0% from the third quarter of the last year.  For the Ceramic
Components business, net sales increased 0.9% while the Lighting Equipment
business sales decreased 30.2% compared to the same period last year.

  Operating income for this third quarter was 1,227 million yen, down 6.4% from
the previous third quarter.  The profit was reduced due to an increase of
depreciation costs and the transfer and reorganization of manufacturing
equipment even though operating loss in the Lighting Equipment business slightly
improved.  Net income was 896 million yen, down 6.9% from the third quarter of
the last year mainly because of 221 million yen of loss on sales and disposal of
fixed assets.



2. Operating results by business segment


                                                           JPY million
                                     3rd Quarter           3rd Quarter
                               1 April - 31 Dec.     1 April - 31 Dec.
                                            2006                  2007
Ceramic Components:
Net sales                                 13,997                14,118
Operating income                           1,938                 1,777

Lighting Equipment:
Net sales                                  1,410                   984
Operating income                           (175)                 (148)

Total:
Net sales                                 15,407                15,102
Operating income                           1,763                 1,629

Elimination:
Net sales                                     --                    --
Operating income                           (452)                 (402)

Consolidated:
Net sales                                 15,407                15,102
Operating income                           1,311                 1,227



Quarterly sales results of Ceramic Components segment by product division


                                                                               JPY million
                    For year ended 31 March
                      2007                                     2008
                           1Q        2Q        3Q        4Q         1Q        2Q        3Q
Circuit Ceramics        1,778     1,908     2,227     1,690      1,692     1,868     1,936
Machinery Ceramics      1,148     1,189     1,354     1,255      1,325     1,330     1,258
RF Products               407       354       504       370        474       492       500
EMC Components          1,046     1,013     1,069     1,029      1,041     1,064     1,138
Total                   4,379     4,464     5,154     4,344      4,532     4,754     4,832




                                                        JPY million
                            Fiscal 2007           Fiscal 2008
                        For 9-month period     For 9-month period
                       1 Apr. - 31 Dec. 2006 1 Apr. - 31 Dec. 2007
Circuit Ceramics                       5,913                  5,496
Machinery Ceramics                     3,691                  3,913
RF Products                            1,265                  1,466
EMC Components                         3,128                  3,243
Total                                 13,997                 14,118



Ceramic Components segment

Total sales for the Ceramic Components segment in this third quarter were 14,118
million yen, an increase of 0.9%; operating income was 1,777 million yen, a
decrease of 8.3% from the third quarter of the last year.  It was influenced by
an increase of depreciation costs, and expenses for the reorganization of
production equipment in the foreign manufacturing subsidiaries.



Circuit Ceramics

Total sales of the Circuit Ceramics division for the third quarter were 5,496
million yen, down 7.1% from the same period last year, mainly affected by a
decrease of demands for glazed substrates and large ceramic substrates, for
which demands had been solid in the first half of this year.



Machinery Ceramics

Total sales from the Machinery Ceramics division were 3,913 million yen, up
6.0%, pulled by the sales of quartz glass products for semiconductor equipment.



Radio Frequency Products

Total sales of the Radio Frequency Products increased 15.9% to 1,466 million yen
because the sales of multilayer ceramic substrates for automotive parts have
been counted since this fiscal year.



EMC Components

Total sales of the EMC Components were 3,243 million yen, up 3.7% from the same
period last year.  Sales of a group of products including EMI filters increased
due to the growth of a flat panel TV market.



Lighting Equipment segment

Total sales from the Lighting Equipment segment declined 30.2% to 984 million
yen over the third quarter of the last year, and operating loss was 148 million
yen.

Although sales decreased due to the reduction of public works, the amount of
operating loss was cut down compared to the same period last year as the
business is now being shifted to the sales and manufacturing of LED lighting
devices and also cost reduction efforts have progressed.






Financial Condition



Total assets at the end of this third quarter were 33,594 million yen, a
decrease of 278 million yen from the end of the previous fiscal year as a result
of operating activities for 9 months in this fiscal term.

Total liabilities were 5,147 million yen, a decrease of 818 million yen from
the end of the last year mainly due to a decrease of trade notes and accounts
payable.  Total net assets increased 540 million yen to 28,447 compared to the
end of the previous fiscal year, with an increase of retained earnings.

Capital expenditure in this 9-month period amounted to 2,498 million yen;
depreciation costs were 1,386 million yen.




Consolidated Balance Sheet
                                                                                             JPY million
                                          3rd Quarter         3rd Quarter                    (Reference)
                                        As of 31 Dec.       As of 31 Dec.     Change %    As of 31 March
                                                 2006                2007                           2007
ASSETS
Current assets:
Cash & deposits                                 6,404               5,843        -8.8%             6,593
Trade notes & accounts receivable               7,181               7,041        -1.9%             7,797
Inventories                                     3,414               4,329        26.8%             3,559
Other                                             677                 590       -12.9%               672
Total current assets                           17,676              17,803         0.7%            18,621

Property, plant & equipment:
Net property, plant & equipment                12,621              13,316         5.5%            12,726

Investment & other assets:
Total investments & other assets                2,536               2,475        -2.4%             2,525

Total assets                                   32,833              33,594         2.3%            33,872

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade notes & accounts payable                  1,833               1,626       -11.3%             2,289
Other                                           2,370               2,601         9.7%             2,594
Total current liabilities                       4,203               4,227         0.6%             4,883

Long-term liabilities:
Long-term debt                                     77                 131        70.1%               135
Accrued retirement benefits                       120                  --           --                --
Other                                             880                 789       -10.3%               947
Total long-term liabilities                     1,077                 920       -14.6%             1,082

Total liabilities                               5,280               5,147        -2.5%             5,965

NET ASSETS
Shareholders' equity:
Common stock                                    6,710               6,710           --             6,710
Capital surplus                                 9,747               9,747           --             9,747
Retained earnings                              11,152              12,219         9.6%            11,521
Treasury stock, at cost                         (407)               (639)        57.0%             (537)
Advance on subscription of own                      5                  --           --
shares
Total shareholders' equity                     27,207              28,037         3.1%            27,441

Valuation and translation adjustments:
Net unrealized gains on                            10                (20)           --                 8
 available-for-sale securities
Foreign currency translation                      336                 430        28.0%               458
adjustments
Total valuation and translation                   346                 410        18.5%               466
adjustments

Minority interests                                 --                   0           --                --
Total net assets                               27,553              28,447         3.2%            27,907
Total liabilities and net assets               32,833              33,594         2.3%            33,872




Consolidated Statement of Income
                                                                                               JPY million
                                            3rd Quarter         3rd Quarter                    (Reference)
                                      1 April - 31 Dec.   1 April - 31 Dec.      Change %   For year ended
                                                   2006                2007                  31 March 2007
Net sales                                        15,407              15,102         -2.0%           21,062
Cost of sales                                    10,940              10,930         -0.1%           15,003
Gross profit                                      4,467               4,172         -6.6%            6,059
Selling, general & administrative                 3,156               2,945         -6.7%            4,135
 expenses
Operating income                                  1,311               1,227         -6.4%            1,924
Other income (expenses):
Interest & dividend income                           35                  59         68.6%               52
Interest expenses                                   (5)                 (3)        -40.0%              (5)
Foreign exchange gain (loss), net                 (117)                (31)        -73.5%            (196)
Other, net                                          189                  90        -52.4%              137
Other income (expenses), net                        102                 115         12.7%             (12)
Income before income taxes                        1,413               1,342         -5.0%            1,912

Income tax expenses (benefits)                      451                 446         -1.1%              578
Minority interests                                    0                   0            --              (0)

Net income                                          962                 896         -6.9%            1,334




                      This information is provided by RNS
            The company news service from the London Stock Exchange