THK Co Ltd

3rd Quarter Results

THK Company Limited
11 February 2005

                                                            February 8 , 2005
Consolidated Financial Review for the Third Quarter
Ended December 31, 2004

Company Name:                                                      THK CO., LTD.

Head Office:                                 Tokyo, Japan (Tel: +81-3-5434-0300)
URL:                                                    http://www.thk.co.jp/en/
Stock exchange listing:                         Tokyo Stock Exchange 1ST Section
Code number:                                                                6481
President and CEO:                                             Akihiro Teramachi
Director/General Manger of Corporate Strategy Department:       Kotaro Yoshihara
Application of U.S. GAAP:                                                   None

1.Matters relating to prepare quarterly consolidated financial statements

  a) Adoption of simplified accounting method: Yes
      The company applied the simplified methods to the following points for 
      this reporting:
      - calculating the income and business taxes
      - calculating and recognizing standard for allowance items

  b) Changes in the accounting method from the most recent fiscal year: None

  c) Changes in scope of consolidation and application of the equity method: Yes
      New consolidated companies:1
      Consolidated companies removed:1
      New companies accounted for by the equity method: -
      Companies accounted for by the equity method removed:1

  d) No comparison with the 3rd quarter of FY03(ended March 31, 2003) are available

2.Consolidated Financial Highlights (Unaudited)

Note: All figures are rounded down to the nearest million yen.

(1) Consolidated Operating results of operation
                                                   Net sales          Operating income   Ordinary income     Net income
                                               Millions of yen    Millions of yen    Millions of yen     Millions of yen
                                                            %                  %                %                      %
Third quarter ended December 31, 04              112,146  30.5       21,285  85.5     22,561    100.3      13,700 125.8 
Third quarter ended December 31, 03               85,933     -       11,473     -     11,263        -       6,067     -
Year ended March 31, 04                          119,253             16,231           15,892                8,583

                                                       Net income per     Fully diluted net
                                                       share              income per share
                                                        Yen                Yen
                                                      
Third quarter ended December 31, 04                    115.56             103.42
Third quarter ended December 31, 03                     51.35              45.38
Year ended March 31, 04                                 72.27              63.69

Note: Percentages for net sales, operating income, ordinary income and net 
      income indicated changes from the third quarter of the previous term.


(2) Consolidated financial positions
                                                 Total assets       Shareholders'      Equity ratio        Shareholders'
                                                                          equity                                 equity
                                                                                                              per share
                                                       Millions of yen    Millions of yen       %                   Yen
As of December 31, 04                                  216,959            123,905            57.1              1,034.59
As of December 31, 03                                  183,398            106,255            57.9                900.34
As of March 31, 04                                     191,105            109,181            57.1                923.35

(Consolidated statements of cash flows)

                                              Net cash provided  Net cash used in   Net cash used in     Cash and cash
                                                  by operating       investing          financing       equivalents at
                                                 activities         activities         activities        end of period
                                               Millions of yen    Millions of yen    Millions of yen     Millions of yen

As of December 31, 04                                  14,605             (5,794)            (1,761)             68,996
As of December 31, 03                                  11,961             (3,654)            (26,945)            53,638
As of March 31, 04                                     15,735             (3,681)            (27,132)            57,037

(Reference)
Forecasted results for the fiscal year ending March 31, 2005 (April 1, 2004 to March 31, 2005)

                                                  Net sales          Operating income   Ordinary income     Net income
                                               Millions of yen    Millions of yen    Millions of yen     Millions of yen

Year ending March 31, 05                               143,000            25,400             26,700              16,500

For reference: Forecasted net income per share for the year ending March 31,
2005: 137.77 yen (calculated based on average number of common stock outstanding
during the period)

Note:

The company has not changed the forecasted figures which were announced on
November 18, 2004. However, this release contains forward-looking statements
that are based on available data  at the time of release. Some factors could
cause actual results to differ from expectations.

       Business Performance for the Third Quarter (Ending December 31, 2004)

Consolidated sales increased 30.5 percent for the third quarter, which ended
December 31, 2004, over the corresponding quarter of the previous year. Domestic
sales to the machine tool and general machinery industries rose due to increased
demand of machineries in China, and to large capital investments by the
automobile industry. Domestic sales to the electronics industry also gained,
driven by increased sales to the flat-panel and semiconductor industries. Sales
in the US increased as well, with rapid turnover to the electronics and
transportation equipment industries, despite the adverse effects of the strong
yen against dollars. Sales in Europe increased, due to gains mainstay machine
tool and general machinery industries. Sales in Asia increased, helped by strong
sales to the machine tool and electronics industries. As a result, this company
marked sales increases all over the world. 

This company posted an 85.5-percent year-on-year increase in consolidated
operating income for the third quarter, and the  operating income margin
increased by 5.6 percent, to 18.9 percent. The cost-to-sales ratio improved by
2.4 percent, helped by productivity enhancements that resulted in the improved
profitability of overseas plants and shortened lead times at domestic plants.
The ratio of sales and general administrative expenses to sales also improved by
3.2 percentage points, as a result of efforts to reduce them.


                        Consolidated Financial Standing

(1)Analysis of Balance Sheets

Total assets as of December 31, 2004, were AY216,959 million, an increase by
AY25,854 million from the previous consolidated fiscal year-end. This is mainly
because of increases in notes and accounts receivable, and of increases cash and
cash equivalents gained by making Daito Seiki Company Limited a wholly-owned
subsidiary. Shareholders' equity to total assets was about the same level
as the previous fiscal year-end, at 57.1 percent, because liabilities gained due
to increased notes and accounts payable caused by increased materials
procurement, even though retained earnings showed an increase helped by a growth
in net income.

(2)Analysis of Statements of Cash Flows

Cash Flows from Operating Activities:

Accounts receivable increased by AY6,843 million, due to increased sales, and
AY10,016 million in corporate income tax was paid. Net cash provided by
operating activities was AY14,605 million, however, because income before taxes
was AY21,994 and depreciation expenses were AY4,130 million for the three months
ending December 31, 2004, and accounts payable rose by AY7,254 million due to an
increase in sales.

Cash Flows from Investing Activities: Net cash used in investing activities was
AY5,794 million, mainly because AY5,531 million was spent for capital
investments to improve the efficiency of domestic plants.

Cash Flows from Financial Activities: Net cash used in financial activities
amounted to AY1,761 million, due mainly to dividend payments of AY1,733 million.

As a result, the outstanding balance of cash and cash equivalents as of December
31, 2004, increased over that of the previous fiscal year-end by AY11,959
million, to AY68,996 million.


(Reference)
1.Non Consolidated Financial Highlights (Unaudited)

Note: All figures are rounded down to nearest million yen.

(1) Operating results
                               Net sales           Operating income    Ordinary income     Net income
                               Millions of yen     Millions of yen     Millions of yen     Millions of yen
                                                 %                   %                   %                   %

Third quarter ended               92,093      32.2    18,732      61.2    19,701      68.8    11,597      72.2
December 31, 04

Third quarter ended              69,642         -     11,624         -    11,668         -     6,736         -
December 31, 03

Year ended March 31, 04           97,740              16,186              16,099               8,831

                                                      Net income per      Fully diluted net
                                                      share               income per share
                                                               Yen                    Yen
Third quarter ended December 31, 04                    97.71                87.46
Third quarter ended December 31, 03                    56.89                50.22
Year ended March 31, 04                                74.18                65.39

Note: Percentages for net sales, operating income, ordinary income and net income indicated changes from the
third quarter of the previous term.

(2) Financial position
                               Total assets        Shareholders'       Equity ratio        Shareholders'
                                                   equity                                  equity
                                                                                           per share
                               Millions of yen     Millions of yen     %                             Yen

As of December 31, 04          204,570             121,534             59.4                1,013.66
As of December 31, 03          175,060             103,391             59.1                873.63
As of March 31, 04             181,983             105,760             58.1                893.23


2. Forecasted result for the fiscal year ending March 31, 2005 (April 1, 2004 to March 31, 2005)

                               Net sales           Operating income    Ordinary income     Net income
                               Millions of yen     Millions of yen     Millions of yen     Millions of yen


Year ending March 31, 05               117,000              22,700              23,600              14,000

For reference: Forecasted of net income per share for the year ending March 31, 2005: 116.77Yen
(calculated based on average number of common stock outstanding during the period)

Note:

The company has not changed the forecasted figures which were announced on November 18, 2004.

However, this release contains forward-looking statements that are based on available data  at the time of
release.

Some factors could cause actual results to differ from expectations.


                             Consolidated Balance Sheets  (Unaudited)
                                                                                                (Millions of yen)

                                       As of              As of              Increase/          As of
                                       December 31, 2004  December 31, 2003  (Decrease)         March 31, 2004

                                          Amount        %    Amount      %        Amount       %     Amount       %
Assets
Current assets:
  Cash on hand and in bank                68,644             53,387               15,257             56,550
  Notes and accounts receivable-trade     53,675             42,800               10,875             46,285
  Short-term investments in securities       351                280                   70                516
  Inventories                             24,471             23,084                1,387             23,108
  Other                                    5,683              4,137                1,546              4,246
Total current assets                     152,827     70.4   123,690   67.4        29,136    23.6    130,706    68.4

Fixed assets:
  Tangible fixed assets                   47,606     22.0    42,695   23.3         4,910    11.5     42,982    22.5
  Intangible fixed assets                  1,126      0.5     1,579    0.9         (453)  (28.7)      1,482     0.8
  Investments and other                   15,399      7.1    15,432    8.4          (33)   (0.2)     15,933     8.3
Total Fixed assets                        64,132     29.6    59,707   32.6         4,424     7.4     60,398    31.6

Total assets                             216,959    100.0   183,398  100.0        33,561    18.3    191,105   100.0

Liabilities
Current liabilities:
  Notes and accounts payable-trade        29,481             22,946                6,535             24,219
  Other                                   18,167             12,679                5,488             16,098
Total current liabilities                 47,649     22.0    35,625   19.4        12,023    33.8     40,318    21.1

Long-term liabilities:
  Bonds                                   38,000             38,000                    -             38,000
  Other                                    6,997              3,172                3,824              3,247
Total long-term liabilities               44,997     20.7    41,172   22.5         3,824     9.3     41,247    21.6

Total liabilities                         92,646     42.7    76,798   41.9        15,848    20.6     81,565    42.7

Minority interest
  Minority interest                          407      0.2       345    0.2            62    18.1        357     0.2

Shareholders' equity
  Common stock                            23,106     10.7    23,106   12.6             -       -     23,106    12.0
  Capital surplus                         32,651     15.0    30,962   16.8         1,689     5.5     30,962    16.2
  Earned surplus                          67,711     31.2    53,320   29.0        14,391    27.0     55,836    29.2
  Valuation adjustment for marketable        607      0.3       464    0.3           142    30.7        721     0.4
  securities
  Foreign currency translation               432      0.2      (47)  (0.0)           479 (1,018.2)    (120)   (0.0)
  adjustment
  Treasury stock                           (603)    (0.3)   (1,551)  (0.8)           948  (61.1)    (1,324)   (0.7)

Total shareholders' equity               123,905     57.1   106,255   57.9        17,650    16.6    109,181    57.1

Total liabilities, minority interests    216,959    100.0   183,398  100.0        33,561    18.3    191,105   100.0
and Shareholders' equity

Note: All figures are rounded down to nearest million yen.


                        Consolidated Statements of Income  (Unaudited)

                                                                                               (Millions of yen)
                                       For the 3rd        For the 3rd        Increase/         For the year ended
                                       quarter ended      quarter ended      (Decrease)        March 31,2004
                                       December 31,2004   December 31,2003
                                       Amount       %     Amount       %     Amount       %      Amount    %

Net sales                                112,146    100.0    85,933    100.0    26,212    30.5   119,253    100.0
Cost of sales                             70,505     62.9    56,129     65.3    14,376    25.6    77,932     65.4

Gross profit                              41,640     37.1    29,804     34.7    11,836    39.7    41,321     34.6

Selling, general and administrative       20,355     18.2    18,331     21.4     2,024    11.0    25,090     21.0
expenses

Operating income                          21,285     18.9    11,473     13.3     9,812    85.5    16,231     13.6

Non-operating income                       1,744      1.6       679      0.8     1,065   156.8     1,070      0.9
  Interest and dividend income               205                 98                107               147
  Other                                    1,538                580                958               922
Non-operating expenses                       468      0.4       889      1.0      (420)  (47.3)    1,409      1.2
  Interest expenses                          293                384                (91)              493
  Other                                      175                504               (328)              916

Ordinary income                           22,561     20.1    11,263     13.1    11,298   100.3    15,892     13.3
Extraordinary gain                           155      0.1        64      0.0        91   142.2        68      0.1
Extraordinary loss                           722      0.7       270      0.3       452   167.2       439      0.4

Income before income taxes                21,994     19.5    11,057     12.8    10,937    98.9    15,520     13.0

Income taxes and other                     8,269      7.3     4,953      5.8     3,316    67.0     6,926      5.8
Minority interesti1/2' income of              25      0.0        36      0.0       (11)  (31.3)       10      0.0
consolidated subsidiaries

Net income                                13,700     12.2     6,067      7.0     7,632   125.8     8,583      7.2

Note: All figures are rounded down to nearest million yen.


         Consolidated Statements of Retained Earnings(Unaudited)

                                                                                           (Millions of yen)
                                                       Nine months       Nine months       Year ended
                                                       ended             ended             March 31, 2004
                                                       December 31, 2004 December 31, 2003


                                                       Amount            Amount            Amount
Capital surplus
  Capital surplus at beginning of the period           30,962            30,962            30,962

  Increase in capital surplus
  Gain on disposition of treasury stock                  688                 -                  -
  Increase resulting from consolidation of a           1,000                 -                  -
  subsidiary

  Capital surplus at  end of the period                32,651            30,962            30,962

Earned surplus
  Earned surplus at beginning of the period            55,836            48,686            48,686

  Increase in earned surplus
  Net income                                           13,700             6,067             8,583
  Increase in earned surplus due to decrease of an          -               378               378
  affiliate

  Decrease in earned surplus
  Dividends                                            1,775              1,782             1,782
  Bonuses to directors                                    50                 30                30

  Earned surplus at end of the period                  67,711            53,320            55,836


Note: All figures are rounded down to nearest million yen.


             Consolidated Statements of Cash Flows (Unaudited)

                                                                                            (Millions of yen)
                                                        Nine months       Nine months       Year ended
                                                        ended             ended             March 31, 2004
                                                        December 31,      December 31, 
                                                        2004              2003
                                                        Amount            Amount            Amount

Cash flows from operating activities :
  Income before income taxes and minority interests     21,994            11,057            15,520
  Depreciation and amortization                          4,130             4,084             5,566
  Increase (decrease) in notes and accounts receivable  (6,843)           (7,802)          (11,293)
  Increase (decrease) in inventories                      (425)              435               395
  Increase (decrease) in notes and accounts payable      7,254             6,062             7,337
  Other                                                 (1,488)              152               655
  Subtotal                                              24,621            13,989            18,182
  Income taxes paid                                    (10,016)           (2,028)           (2,446)
     Net cash provided by operating activities          14,605            11,961            15,735
Cash flows from Investing activities :
  Payments for purchases of tangible fixed assets,      (6,001)           (3,802)           (5,415)
  marketable securities and investment securities
  Proceeds from sales of tangible fixed assets,            157             1,223             2,782
  marketable securities and investment securities
  Other                                                     49            (1,075)           (1,048)
  Net cash provided by investing activities             (5,794)           (3,654)           (3,681)
Cash flows from financing activities :
  Increase (decrease) in short-term debt                     -            (3,310)           (3,303)
  Increase (decrease) in long-term debt                    (18)          (20,741)          (20,932)
  Other                                                 (1,743)           (2,893)           (2,895)
     Net cash provided by financing activities          (1,761)          (26,945)          (27,132)
Effect of exchange rate changes on cash and cash           191              (256)             (418)
equivalents
Net increase(decrease) in cash and cash equivalents      7,240           (18,895)          (15,496)
Cash and cash equivalents at beginning of the period    57,037            72,533            72,533
Increase in cash and cash equivalents due to initial     4,734                 -                 -
inclusion of a consolidated subsidiary
Decrease in cash and cash equivalents due to exclusion     (15)                -                 -
of a consolidated subsidiary
Cash and cash equivalents at end of the period          68,996            53,638            57,037

Note: All figures are rounded down to nearest million yen.




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

QRTEAKAFFDSSEEE