February 7, 2008

  For the 3rd quarter, the domestic industry demand for trucks fell due to ebbing of demand spurred by Nox/PM regulations. Consequently, the domestic sales volume fell by 20,718 units ( 27.9%) year on year to 53,659 units. In overseas markets drop in sales in North America and Thailand was more than offset by strong sales of heavy-duty trucks in China, Australia, Latin America and Africa and increased sales of light-duty trucks in the Middle East, Europe and Latin America.
Accordingly, the overseas sales volume increased by 12,611 units ( 4.8%) year on year to 277,444 units. As a result, the total sales volume of both domestic and foreign markets fell 8,107 units ( 2.4% ) to 331,103 units.
With regard to sales revenue of other products, increased export to China and Latin America lifted the sales revenue of shipments of production components by Y14.9 billion (26.3%) to Y71.8 billion. The sales amount of engine / components rose Y41.5 billion ( 26.6%) from the previous year to Y197.6 billion on increased export.
Overall, Isuzu posted Y1.3044 trillion sales revenue (up 6.4% from the previous year), Y76.3 billion operating profit (down 10.8%), Y85 billion working profit (down 8.8%) and Y61.4 billion net income (down 20.5%) for this quarter.

  The 3rd quarter net assets increased Y17.1 billion from the end of previous fiscal year to Y406.2 billion.
This is due to posted quarterly net income of Y61.4 billion and increase of Y5.7 billion of minority interests, which, however, were deducted by acquisition and cancellation of preferred stock of Y40 billion and dividend payment of Y7.5 billion.
The Company made further advances in reducing outstanding interest-bearing debt, ending the reporting period with Y265 billion, down Y32.2 billion. The Company's capital adequacy ratio rose to 29.0% compared to 27.8% at the end of last fiscal term.

1) Change in the Scope of Principal Subsidearies
None

2) Adoption of simplified accounting practices
The standards for preparing the mid-term (consolidated) financial statements are generally applied, while using certain simplified procedures are used for calculating tax expenses, reporting depreciation expenses, and omitting physical stocktaking.
3) Changes in accounting policies
(Change in depreciation method of fixed assets )
  According to Revision to the Corporate Tax Law announced on March 30, 2007 [(Law to Revise Part of Income Tax Law, etc. dated March 30, 2007, No.6) and (Ordinance to Revise Part of Corporate Tax Law Enforcement Order, dated Mar.30, 2007, No.83)], the Company adopted the depreciation method based on the revised Corporate Tax Law for fixed assets acquired on and after April 1, 2007 from FY2008 fiscal half term.
(Additional Information)
  In connection with revision to the Corporate Tax Law, the Company adopted the depreciation method based on pre-revised Corporate Tax Law for assets acquired on and before Mar.31, 2007. From one business year after the business year when the book value of such assets reached 5% of the acquired cost, the difference between 5% of the acquired cost and memorandum price was evenly depreciated for five years and the resultant amount was included in the depreciation expenses.