Kubota Corporation Reported Today Its Consolidated Results of Operations for the Nine Months Ended December 31, 2007

Business Wire, Feb 5, 2008

OSAKA, Japan -- Revenues of Kubota Corp. (NYSE:KUB) (hereinafter"the Company") during the nine months under review, revenues increased 10.5 billion yen (1.3 %), to 837.6 billion yen from the corresponding period in the prior year. Although domestic revenues decreased, overseas revenues increased due to an increase in Internal Combustion Engine & Machinery.

In the domestic market, revenues decreased 16.8 billion yen (4.0 %), to 403.0 billion yen from the corresponding period in the prior year. Revenues in Internal Combustion Engine & Machinery decreased due to sales downturn of farm equipment, even though sales of construction machinery and engines increased from the corresponding period in the prior year. Revenues in Pipes, Valves, and Industrial Castings increased due to a great increase in sales of industrial casting, although sales of plastic pipes decreased. Revenues in Environmental Engineering decreased affected by the discontinuation of a part of operations. Revenues in Other decreased in spite of substantial sales increase of vending machine, because the majority of the shares of the subsidiary which conducts sales of condominiums was sold and revenues of the subsidiary were not recorded from the third quarter.

Overseas revenues increased 27.3 billion yen (6.7 %), to 434.6 billion yen from the corresponding period in the prior year. In Internal Combustion Engine and Machinery, sales of tractors, engines and construction machinery increased. Sales of tractors increased because of substantial sales expansion in Europe and Asia outside Japan, while sales in North America decreased affected by the slow down of U.S. housing market. Sales of engines and construction machinery increased mainly in Europe, on the background of its brisk market condition. In Pipes, Valves, and Industrial Castings, sales of ductile iron pipes decreased. In Environmental Engineering, sales of pumps increased.

Operating income decreased 2.1 billion yen (1.9 %), to 106.5 billion yen from the corresponding period in the prior year. Operating income in Internal Combustion Engine and Machinery increased due to an increase of revenues mainly in Europe and Asia outside Japan, and weaker yen exchange rate compared with the corresponding period in the prior year. Operating income in Pipes, Valves, and Industrial Castings decreased due to soaring costs of raw materials, mainly steel scraps. Operating income in Environmental Engineering decreased due to a decrease in sales and price decline of sales orders. Operating income in Other increased due to sales increase in vending machine.

Income from continuing operations before income taxes, minority interests in earnings of subsidiaries, and equity in net income of affiliated companies decreased 4.5 billion yen (4.0 %), to 1,069 billion yen from the corresponding period in the prior year. Income taxes were 41.7 billion yen (39.0 % of effective tax rate), and net amount of minority interests in earnings of subsidiaries and equity in net income of affiliated companies to deduct was 5.5 billion yen. After addition of gain from discontinued operation, net income decreased 3.5 billion yen (5.6 %), to 59.9 billion yen from the corresponding period in the prior year.