DENSO Announces Third-quarter Financial Results

DENSO Announces Third-quarter Financial Results

KARIYA (Japan) ―DENSO Corporation today announced its third quarter global financial results for the nine months ending Dec. 31, 2011:

  • Consolidated net sales totaled 2,214.4 billion yen (US$28.5 billion), a 6.1 percent decrease from the previous year.
  • Consolidated operating income totaled 82.1 billion yen (US$1.1 billion), a 52.9 percent decrease from the previous year.
  • Consolidated net income totaled 36.4 billion yen (US$467.8 million), a 71.9 percent decrease from the previous year. The decrease includes the reversal of deferred tax assets, totaling 15.8 billion yen (US$203.2 million), resulting from the change of the corporate tax rate in Japan.

”In spite of the production recovery from the Great East Japan Earthquake, low production level in the first-half, the Thailand flooding and the strong yen led to a decrease in both sales and income from the previous year,” said Sadahiro Usui, executive director of DENSO Corporation.

In Japan, despite the production recovery from the earthquake, the affect of the Thailand flooding led to a decrease in sales to 1,555.5 billion yen (US$20.0 billion), a 4.0 percent decrease from the previous year. As a result of the decrease in production volume, the operating income totaled 36.1 billion yen (US$464.4 million), a 55.1percent decrease from the previous year.

In North America, despite the production increase in American auto manufactures, low production level of Japanese auto manufacturers in the first half led to a decrease in sales to 350.3 billion yen (US$4.5 billion), an 11.6 percent decrease from the previous year. Due to the decreases in production volume, operating income totaled 1.4 billion yen (US$17.5 million), a 92.8 percent decrease from the previous year.

In Europe, despite the sales rise mainly to European auto manufactures, sales totaled 286.5 billion yen (US$3.7 billion), a 1.6 percent decrease from the previous year. Operating income resulted in 4.9 billion yen (US$63.3 million), a 42.0 percent decrease from the previous year.

In Asia and Oceania, a production decrease in Japanese auto manufactures and the affect by the Thailand flooding led to a decrease in sales to 444.2 billion yen (US$5.7 billion), a 7.6 percent decrease from the previous year. The decrease in production volume led to the operating income of 37.5 billion yen (US$482.7 million), a 40.5 percent decrease from the previous year.

In other areas, which mainly applies to the South American region, including countries such as Brazil and Argentina, sales totaled 43.8 billion yen (US$563.5 million), a 3.7 percent decrease from the previous year, and operating income totaled 2.4 billion yen (US$30.8 million), a 54.3 percent decrease from the previous year.

“Considering the affect of the Thailand flooding, we have made a downward revision to the year-end sales forecasts. As for the year end income, we forecast the same level as the prior announcement,” said Usui.

Forecast for Fiscal Year Ending March 31, 2012

FY Forecast

(Previous announced)

FY Forecast

(Revised)

Changes from

Previous FY

Net Sales

3,160.0 billion yen

[US$40.6 billion]

3,110.0 billion yen

[US$40.0 billion]

-21.5 billion yen

(-0.7 percent)

Operating income

135.0 billion yen

[US$1.7 billion]

135.0 billion yen

[US$1.7 billion]

-53.3 billion yen

(-28.3 percent)

Income before income taxes and minority interests

145.0 billion yen

[US$1.9 billion]

142.8 billion yen

[US$1.8 billion]

-68.9 billion yen

(-32.5 percent)

Net income

98.0 billion yen

[US$1.3 billion]

82.0 billion yen

[US$1.1 billion]

-61.0 billion yen

( -42.7 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 approximately 120,000 people. Consolidated global sales for the fiscal year ending March 31, 2011, totaled US$37.7 billion. Last fiscal year, DENSO spent 9.3 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 77.74 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on December 30, 2011. Billion is used in the American sense of one thousand million.