DENSO Announces First-half Financial Results

DENSO Announces First-half Financial Results

KARIYA (Japan) ―DENSO Corporation today announced global financial results for the first half of the fiscal year, which ended Sept. 30, 2012:

  • Consolidated net sales totaled 1,733.1 billion yen (US$22.3 billion), a 23.0 percent increase from the previous year.
  • Consolidated operating income totaled 136.3 billion yen (US$1.8 billion), a 327.7 percent increase from the previous year.
  • Consolidated net income totaled 78.1 billion yen (US$1.0 billion), a 235.3 percent increase from the previous year.

”The government subsidies for eco-friendly car purchases in Japan and the strong  car production in North America and Asia and Oceania led to a increase in both sales and income,” said Nobuaki Katoh, president and CEO of DENSO Corporation.

In Japan, the increase in car production, due to the recovery from the earthquake and government subsidies for eco-friendly car purchases, led to an increase in sales to 1,234.0 billion yen (US$15.9 billion), a 28.1 percent increase from the previous year. Despite a currency exchange loss, the increase in production volume led to an operating income of 94.0 billion yen (US$1.2 billion), a 5,417.4% percent increase from the previous year.

In North America, increase of sales for Japanese automakers and GM, Ford and Chrysler led to an increase in sales to 300.8 billion yen (US$3.9 billion), a 38.3 percent increase from the previous year. As a result of the increase in production volume, the operating income totaled 6.9 billion yen (US$89.0 million), an increase of 9.9 billion yen (US$128.1 million) from the previous year’s operating loss.

In Europe, a decrease in car production, due to the economic slump led to a decrease in sales to 173.1 billion yen (US$2.2 billion), a 12.9 percent decrease from the previous year, and a decrease in operating income to 1.4 billion yen (US$17.5 million), a 59.0 percent decrease from the previous year.

In Asia and Oceania, the recovery of Japanese auto manufactures’ car production resulted in a sales increase to 355.3 billion yen (US$4.6 billion), an 18.5 percent increase from the previous year. The increase in production volume led to an operating income of 33.9 billion yen (US$436.8 million), a 29.0 percent increase from the previous year.

In other areas, mainly the South American region, including countries such as Brazil and Argentina, sales totaled 30.1 billion yen (US$387.6 million), a 1.2 percent decrease from the previous year, and the operating income totaled 1.8 billion yen (US$22.6million), an 11.9 percent decrease from the previous year.

“Considering future business conditions, such as a decrease of car production in Japan, Europe and China, we made a downward revision of our year-end forecast.” said Katoh.


Forecast for Fiscal Year Ending March 31, 2013

FY Forecast

(Original)

FY Forecast

(Revised)

Changes from Previous FY

Net Sales

3,480.0 billion yen

[US$44.8 billion]

3,410.0 billion yen

[US$43.9 billion]

+255.4 billion yen

(+8.1 percent)

Operating income

250.0 billion yen

[US$ 3.2 billion]

225.0 billion yen

[US$2.9 billion]

+64.3 billion yen

(+40.0 percent)

Income before income taxes and minority interests

262.5 billion yen

[US$3.4 billion]

231.1 billion yen

[US$3.0 billion]

+67.6 billion yen

(+41.4 percent)

Net income

172.0 billion yen

[US$2.2 billion]

138.0 billion yen

[US$1.8 billion]

+48.7 billion yen

(+54.5 percent)

 

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electric, electronics and information and safety. Its customers include all the world’s major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 35 countries and regions (including Japan) and employs more than 120,000 people. Consolidated global sales for the fiscal year ending March 31, 2012, totaled US$38.4 billion. Last fiscal year, DENSO spent 9.5 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.globaldenso.com, or visit our media website at www.densomediacenter.com.

(Notes)

U.S. dollar amounts have been translated, for convenience only, at the rate of 77.60 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on September 30, 2012. Billion is used in the American sense of one thousand million.