DENSO Announces First-quarter Financial Results

DENSO Announces First-quarter Financial Results

-Upward revision to the first-half and full-year forecast-

KARIYA (Japan)―DENSO Corporation today announced global financial results for the first quarter ending June 30, 2012:

  • Consolidated net sales totaled 882.4 billion yen (US$11.1 billion), a 40.0 percent increase from the previous year.
  • Consolidated operating income totaled 78.2 billion yen (US$985.6 million), an increase of 82.5 billion yen (US$1.0 billion) from the previous year’s operating loss of 4.4 billion yen (US$55.2 million).
  • Consolidated net income totaled 49.1 billion yen (US$619.1 million), a 1,801.7 percent increase from the previous year.

”Compared to last year, DENSO’s consolidated sales and income increased sharply, as our 2011 first quarter results were impacted by the Great East Japan Earthquake,” said Kenichiro Ito, executive director 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 620.9 billion yen (US$7.8 billion), a 55.7 percent increase from the previous year. The increase in production volume led to an operating income of 55.1 billion yen (US$694.7 million), an increase of 79.5 billion yen (US$1.0 billion) from the previous year’s operating loss.

In North America, increase of sales for Japanese auto manufacturers and GM, Ford and Chrysler led to an increase in sales to 159.6 billion yen (US$2.0 billion), a 57.8 percent increase from the previous year. As a result of the increase in production volume, the operating income totaled 5.2 billion yen (US$65.9 million), an increase of 7.8 billion yen (US$97.8 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 93.5 billion yen (US$1.2 billion), a 13.9 percent decrease from the previous year. Due to the currency exchange loss, operating income totaled 1.8 billion yen (US$22.8 million), a 42.8 percent decrease from the previous year.

In Asia and Oceania, the recovery of Japanese auto manufactures’ car production resulted in sales increase to 175.3 billion yen (US$2.2 billion), a 19.1 percent increase from the previous year. The increase in production volume led to the operating income of 17.0 billion yen (US$214.4 million), a 27.7 percent increase from the previous year.

In other areas, which mainly refer to the South American region, including countries like as Brazil and Argentina, sales totaled 14.0 billion yen (US$176.3 million), an 11.4 percent decrease from the previous year. The operating income totaled 1.0 billion yen (US$12.3 million), a 35.8 percent decrease from the previous year.

“Considering the first-quarter financial results, we have decided to upwardly revise the original forecasts for the first-half and full-year financial results,” said Ito. “As this being the first year for the DENSO Group’s Global Mid-term Policy, we will progressively make efforts to expand business.“

Forecast for First-Half Fiscal Year Ending September 30, 2012

Half-Year Forecast

(Original)

Half-Year Forecast

(Revised)

Changes from Previous First-half

Net Sales

1,680.0 billion yen
[US$21.2 billion]

1,740.0 billion yen
[US$21.9 billion]

+330.9 billion yen

 (+23.5 percent)

Operating income

90.0 billion yen

[US$1.1billion]

135.0 billion yen

[US$1.7 billion]

+103.1 billion yen

(+323.7 percent)

Income before income taxes and minority interests

95.0 billion yen

[US$1.2 billion]

142.5 billion yen

[US$1.8 billion]

+103.2 billion yen

(+262.4 percent)

Net income

66.0 billion yen

[US$832.2 million]

88.0 billion yen

[US$1.1 billion]

+64.7 billion yen

(+277.9 percent)

 

Forecast for Fiscal Year Ending March 31, 2013

FY Forecast

(Original)

FY Forecast

(Revised)

Changes from Previous FY

Net Sales

3,420.0 billion yen
[US$43.1 billion]

3,480.0 billion yen
[US$43.9 billion]

+325.4 billion yen

 (+10.3 percent)

Operating income

205.0 billion yen

[US$2.6billion]

250.0 billion yen

[US$3.2 billion]

+89.3 billion yen

(+55.5 percent)

Income before income taxes and minority interests

215.0 billion yen

[US$2.7 billion]

262.5 billion yen

[US$3.3 billion]

+99.0 billion yen

(+60.6 percent)

Net income

150.0 billion yen

[US$1.9 billion]

172.0 billion yen

[US$2.2 billion]

+82.7 billion yen

(+92.6 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 over 120,000 people.

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)

The above forecasts are created based on the information obtained by the date of this announcement and the actual results may differ due to various causes in the future.

U.S. dollar amounts have been translated, for convenience only, at the rate of 79.31 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on June 30, 2012. Billion is used in the American sense of one thousand million.