KOBE STEEL, LTD
ECOWAY

Non-Consolidated Interim Balance Sheets
At September 30, 1998 and 1997 (Unaudited)

Millions of yen

Thousands of
U.S. dollars
(Note 1)

Assets

1998

1997

1998

Current assets:
Cash and cash equivalents

45,034

9,150

332,600

Marketable securities

46,464

76,405

343,161

Notes and accounts receivable:
Trade

164,376

167,032

1,214,003

Subsidiaries and affiliates

151,351

121,100

1,117,806

Other

4,740

9,834

35,007

Allowance for doubtful accounts

(1,093)

(1,142)

(8,072)

319,374

296,824

2,358,744

Inventories:
Finished goods

57,834

53,103

427,134

Work in process

109,821

114,210

811,086

Raw materials and supplies

56,609

58,059

418,087

224,264

225,372

1,656,307

Other

44,633

40,624

329,639

Total current assets

679,769

648,375

5,020,451

Investments and other assets:
Investments in securities

22,628

23,033

167,120

Investments in and advances to
subsidiaries and affiliates


212,452


185,598


1,569,069

Other

50,899

49,905

375,916

Allowance for doubtful accounts

(3,048)

(2,923)

(22,511)

282,931

255,613

2,089,594

Plant and equipment:
Land

116,419

117,673

859,815

Buildings and structures

433,851

425,499

3,204,217

Machinery and equipment

1,479,443

1,461,328

10,926,462

Construction in progress

35,642

25,177

263,235

2,065,355

2,029,677

15,253,729

Less accumulated depreciation

1,263,524

1,211,308

9,331,787

801,831

818,369

5,921,942

Deferred assets:
Research and development expenses

7,689

10,085

56,787

1,772,220

1,732,442

13,088,774

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