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, 2012:

  • Consolidated net sales totaled 2,569.4 billion yen (US$29.7 billion), a 16.0 percent increase from the previous year.
  • Consolidated operating income totaled 188.0 billion yen (US$2.2 billion), a 128.9 percent increase from the previous year.
  • Consolidated net income totaled 130.8 billion yen (US$1.5 billion), a 259.7 percent increase from the previous year.

“The recovery of car production in Japan and the strong car production in North America and Asia and Oceania led to an increase in both sales and income,” 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 1,818.0 billion yen (US$21.0 billion), a 16.9 percent increase from the previous year. Despite increase of expenses, the increase in production volume led to an operating income of 125.4 billion yen (US$1.4 billion), a 247.3% percent increase from the previous year.

In North America, an increase of sales for Japanese automakers and GM, Ford and Chrysler led to an increase in sales to 450.3 billion yen (US$5.2 billion), a 28.5 percent increase from the previous year. As a result of the increase in production volume, the operating income totaled 9.2 billion yen (US$106.7 million), 581.1% percent increase from the previous year.

In Europe, a decrease in car production due to the economic downturn led to a decrease in sales to 259.5 billion yen (US$3.0 billion), a 9.4 percent decrease from the previous year, and a decrease in operating income to 0.8 billion yen (US$9.5 million), a 83.3 percent decrease from the previous year.

In Asia and Oceania, the recovery of Japanese auto manufactures’ car production resulted in a sales increase to 540.5 billion yen (US$6.2 billion), a 21.7 percent increase from the previous year. The increase in production volume led to an operating income of 53.1 billion yen (US$613.3 million), a 41.5 percent increase from the previous year.

In other areas, mainly the South American region, including countries such as Brazil and Argentina, sales totaled 45.8 billion yen (US$528.7million), a 4.5 percent increase from the previous year, and the operating income totaled 2.6 billion yen (US$29.6million), a 6.8 percent increase from the previous year.

“Considering the progress of the depreciation of yen, we have revised the assumed exchange rate and have made an upward revision to the year-end sales forecasts,”said Ito.

 

Forecast for Fiscal Year Ending March 31, 2013

FY Forecast

(Previous Announced)

FY Forecast

(Revised)

Changes from Previous FY

Net Sales

3,410.0 billion yen

[US$39.4 billion]

3,450.0 billion yen

[US$39.8 billion]

+295.4 billion yen

(+9.4 percent)

Operating income

225.0 billion yen

[US$2.6 billion]

240.0 billion yen

[US$2.8 billion]

+79.3 billion yen

(+49.3 percent)

Income before income taxes and minority interests

231.1 billion yen

[US$2.7 billion]

263.6 billion yen

[US$3.0 billion]

+100.1 billion yen

(+61.3 percent)

Net income

138.0 billion yen

[US$1.6 billion]

160.0 billion yen

[US$1.8 billion]

+70.7 billion yen

(+79.2 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, 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, 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) 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 86.58 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on December 28, 2012. Billion is used in the American sense of one thousand million.