Asahi Kasei Reports Consolidated Results for 1st Quarter Fiscal 2007

JCN Newswires, August 1, 2007

Tokyo, Japan, July 31, 2007 - (JCN Newswire) - Asahi Kasei's consolidated net sales for the quarter were JPY 385.2 billion, an increase of JPY 36.7 billion (10.5%) from a year ago, with product prices for chemicals rising to compensate for increased feedstock costs. Operating profit was JPY 25.9 billion, an increase of JPY 10.6 billion (69.4%). Ordinary profit was JPY 28.2 billion, an increase of JPY 13.2 billion (87.4%). Net income was JPY 18.1 billion, an increase of JPY 8.9 billion (96.7%).

I. Summary of Consolidated Results

               (millions of yen, unless otherwise specified)
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1. Operating results (% change from previous year in brackets)
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                              Q1 2007                Q1 2006

Net sales                 385,170 [ 10.5%]       348,483  [ 6.0%]
Operating profit           25,919 [ 69.4%]        15,297 [ 12.4%]
Ordinary profit            28,235 [ 87.4%]        15,064  [ 3.2%]
Net income                 18,066 [ 96.7%]         9,184 [ 76.8%]
Net income per share(y)       12.91                   6.56
Diluted net income
   per share(y)                  -                      -
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2. Financial position
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At end of                    June 2007              June 2006

Total assets                 1,485,758              1,409,705
Net assets                     666,016                601,712
Net worth/total assets           45.3%                  42.2%
Net worth per share(y)          470.29                 424.88
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3. Cash flows
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Nine months ended December      Q1 2007                Q1 2006

Cash flows from
  operating activities          (10,716)               (11,554)
Cash flows from
  investing activities          (14,374)               (15,519)
Cash flows from
  financing activities          (15,105)                 7,739
Cash and cash equivalents
  at end of period               61,499                 69,395
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Cash Dividends (Cash dividends per share)
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Fiscal year        Q1      Q2       Q3      Q4       Total annual

2006                -      5.00      -     7.00          12.00
2007 (forecast)     -      6.00      -     7.00          13.00
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II. Results by Operating Segment

With the April 1, 2007, merger of Asahi Kasei Life & Living with Asahi Kasei Chemicals, the Life & Living segment was combined with the Chemicals segment. For comparison purposes, results for the year-ago period in the Chemicals segment

have been revised to include those in the Life & Living segment.

Chemicals

Sales increased by JPY 28.3 billion (14.9%) from the first quarter a year ago to JPY 218.1 billion and operating profit increased by JPY 10.8 billion (170.1%) to JPY 17.2 billion. Operating profit from volume products operations increased, with strong overseas demand for acrylonitrile, adipic acid, and other chemicals and derivative products. Operating profit from specialty products operations grew, with increased shipments of ion-exchange membranes to China.

Homes

Sales increased by JPY 3.7 billion (6.4%) from the first quarter a year ago to JPY 62.3 billion and the operating loss decreased by JPY 0.9 billion to JPY 2.8 billion. Orders for order-built homes decreased by JPY 4.1 billion (4.9%) to JPY 79.6 billion. Order-built homes operations performed well, with higher unit prices for unit homes and increased deliveries of multi-dwelling homes. Operating profit from housing-related operations such as real estate and remodeling increased.

Pharma

Sales increased by JPY 1.2 billion (4.5%) from the first quarter a year ago to JPY 27.2 billion and operating profit decreased slightly by JPY 0.1 billion (2.6%) to JPY 4.6 billion. Operating profit from devices operations grew, with increased shipments of APS(TM) polysulfone-membrane artificial kidneys and Planova(TM) virus removal filters. Profitability of pharmaceuticals operations was impacted by lower licensing income and higher R&D expenditures.

Fibers

Sales increased by JPY 5.3 billion (22.9%) from the first quarter a year ago to JPY 28.2 billion and operating profit increased by JPY 1.1 billion (a multiple of 3.1) to JPY 1.7 billion. Operating profit from elastic polyurethane filament operations increased, with a recovery of profitability of operations in Europe and the US and with strong overseas demand. Operating profit in Bemberg(TM) regenerated cellulose grew with increased exports.

Elecgtronics Materials and Devices

Sales increased by JPY 1.5 billion (5.4%) from the first quarter a year ago to JPY 29.2 billion and operating profit decreased by JPY 0.7 billion (10.3%) to JPY 5.8 billion. Electronics materials operations performed well, with increased shipments. Electronics devices operations were impacted by lower product prices for LSIs.