Chiyoda Corp. Releases Financial Results for the Fiscal Year Ended March 31, 2004.

Business Editors

YOKOHAMA, Japan--(BUSINESS WIRE)--May 18, 2004

Chiyoda Corporation (Other OTC:CHYCF), a major Japanese industrial plant engineering company, today reported consolidated financial results for the fiscal year ended March 31, 2004.

Consolidated operating profit rose 279.8% from the previous fiscal year to 5,881 million yen on a sales gain of 24.3% to 206,816 million yen. Net profit was up 232.5% to 6,646 million yen, nearly tripling the return on shareholders' equity to 33.7%. Net profit per common share climbed to 35.91 yen.

Consolidated domestic new orders rose 4.9% to 71,979 million yen and overseas new orders were up 21.2% to 218,678 million yen. The result was an overall increase of 16.7% in new orders to 290,658 million yen. Japan's plant market saw substantial investments by oil companies in projects to lower sulfur in fuel oils and in projects to convert thermal power stations to LNG. Overseas, China is generating a high level of economic growth and the energy major companies are aggressively executing strategies to shift to gas, creating considerable activity in plant markets. Net sales from domestic construction contracts fell 23.7% to 63,353 million yen; however, net sales from overseas construction contracts were up 72.2% to 143,462 million yen.

In earnings, gross profit on completed construction contracts grew 35.1% to 14,106 million yen as the volume of completed contracts increased and improved risk management ensured profitability on new orders. Operating profit surged 279.8% to 5,881 million yen as SG&A expenses came down. Lower interest burden and interest-bearing liabilities lifted ordinary profit 165.2% to 6,348 million yen. Progress in the recovery of delinquent long-term receivables boosted net profit 232.5% to 6,646 million yen.

Chiyoda is forecasting consolidated orders of 230,000 million yen, net sales from construction contracts of 220,000 million yen, ordinary profit of 7,100 million yen and net profit of 7,300 million yen in the fiscal year ending March 2005. The forecasts assume an exchange rate of 105 yen to the U.S. dollar.

Chiyoda Corporation, headquartered in Yokohama, Japan, provides services on a global basis in the field of engineering, procurement and construction (EPC) for gas processing, refineries and other hydrocarbon or other industrial plant projects, particularly for LNG, GTL, DME. For more than 50 years, Chiyoda has constantly leveraged its extensive experience and far-reaching global network to give it an unrivaled advantage. The Company will continue its EPC business, while innovating an expanded business model that includes plant lifecycle engineering (PLE). This will enable Chiyoda to become a one-stop provider of everything its customers need in the way of plant development and operations.