Income Analysis
During fiscal 1995, ended March 31, 1996, non-
consolidated net sales rose 7.6%, デュエルビッツ 入金不要ボーナスen;1,146.4 billion. 
Domestic sales increased 8.4%, デュエルビッツ 入金不要ボーナスen;950.0 billion, and 
overseas sales advanced 3.8%, デュエルビッツ 入金不要ボーナスen;196.4 billion.
  Sales in the Iron and Steel Sector, which includes Kobe 
Steel's welding operations, were up 4.7%, デュエルビッツ 入金不要ボーナスen;500.0 
billion, accounting for 43.6% of net sales, compared with 
44.8%, in the previous fiscal year. Sales in the Aluminum 
and Copper Sector advanced 13.5%, デュエルビッツ 入金不要ボーナスen;270.6 billion, 
composing 23.6% of total sales, up from 22.4% in fiscal 
1994. In the Machinery and Information Sector, sales 
advanced 7.4%, デュエルビッツ 入金不要ボーナスen;375.8 billion, constituting 32.8% of 
net sales, the same as in the previous fiscal year.
  Operating income soared 75.1%, デュエルビッツ 入金不要ボーナスen;100.0 billion. As 
a result, the profit margin improved to 8.7%, from 5.4% 
in fiscal 1994.
  Net other expenses amounted デュエルビッツ 入金不要ボーナスen;28.4 billion, 82.3% 
less than in the previous fiscal year. As a result, income 
before income taxes amounted デュエルビッツ 入金不要ボーナスen;71.6 billion. After 
recording ¥2.3 billion in corporate taxes, net income 
totaled ¥69.3 billion. This represents a ¥165.0 billion 
improvement from a net loss of ¥95.7 billion recorded in 
the previous fiscal year. Net income per share was 
¥24.45. However, because an ¥86.4 billion undisposed 
deficit was carried over from the previous fiscal year, 
the Company was unable to eliminate its undisposed deficit, 
which amounted デュエルビッツ 入金不要ボーナスen;16.4 billion for the year. As a result, 
management was once again obliged to forego the 
payment of cash dividends.
  Return on average assets was 3.7%, compared with 
-4.9% in fiscal 1994 and -0.1% in fiscal 1993. Return on 
average equity was 19.6%, compared with -26.% and 
-0.2%, respectively, in the previous two fiscal years.

Analysis of Cash Flow and Financial Position
The Company's operating, investing, and financing 
activities during the year resulted in a 77.6% net decrease 
in cash and cash equivalents, デュエルビッツ 入金不要ボーナスen;12.8 billion.
  Net cash provided by operating activities totaled 
¥68.4 billion, up from ¥47.3 billion in the previous year. 
This increase was due primarily to the rise in net sales.
  During the year, the Company allocated ¥55.9 billion 
for the purchase of plant and equipment, and ¥27.3 billion 
for the acquisition of marketable securities, investments, 
and other assets. On the other hand, the Company 
received proceeds of ¥64.4 billion from the sale of plant 
and equipment and proceeds of ¥95.7 billion from the sale 
or collection of marketable securities, investments, and 
other assets. As a result, net cash provided by investing 
activities amounted デュエルビッツ 入金不要ボーナスen;76.9 billion.
  Net cash used in financing activities totaled ¥189.4 
billion, an increase of ¥148.4 billion from the previous 
fiscal year. During the year, the issuance of long-term debt 
generated ¥34.6 billion. On the other hand, the Company 
repaid ¥120.2 billion in short-term borrowing while the 
repayment of long-term debt and the redemption of bonds 
totaled ¥103.8 billion.
  Total assets at the end of fiscal 1995 amounted to 
¥1,824.2 billion, a decrease of 5.2% from the previous 
fiscal year-end. Total stockholders' equity at fiscal year-
end was ¥387.5 billion, compared with ¥318.2 billion at 
the end of fiscal 1994. As a result, the Company's net 
worth ratio was 21.2%.