DENSO Announces First-half Financial Results

Upward revisions to the full-year forecast

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Kariya, Japan (PRWEB) October 31, 2013

DENSO Corporation today announced global financial results for the first half of the fiscal year, which ended Sept. 30, 2013:

  •     Consolidated net sales totaled 1,987.9 billion yen (US$20.3 billion), a 14.7 percent increase from the previous year.
  •     Consolidated operating income totaled 192.2 billion yen (US$2.0 billion), a 41.0 percent increase from the previous year.
  •     Consolidated net income totaled 150.1 billion yen (US$1.5 billion), a 92.2 percent increase from the previous year.

”The sales and operating income increased due to an increase in car production in North America, in addition to the impact of the weak yen,” said Nobuaki Katoh, president and CEO of DENSO Corporation.

In Japan, despite a decrease in car production, the increase of export sales and the effect of the weak yen led to an increase in sales to 1,329.8 billion yen (US$13.6 billion), a 7.8 percent increase from the previous year. Also, despite an increase in labor costs and research and development expenses, the currency exchange gain and cost reduction efforts led to an operating income of 143.7 billion yen (US$1.5 billion), a 52.8 percent increase from the previous year.

In North America, an increase in car production and the impact of the weak yen led to an increase in sales to 402.8 billion yen (US$4.1 billion), a 33.9 percent increase from the previous year. As a result of the increase in production volume, the operating income totaled 9.3 billion yen (US$95.3 million), a 34.8 percent increase from the previous year.

In Europe, the gradual recovery from the economic slump and the effect of the weak yen led to an increase in sales to 234.5 billion yen (US$2.4 billion), a 35.5 percent increase from the previous year. As a result of the increase in production volume, the operating income totaled 3.7 billion yen (US$37.7 million), a 172.3 percent increase from the previous year.

In Asia and Oceania, the increase in car production and the effect of the weak yen resulted in a sales increase to 457.2 billion yen (US$4.7 billion), a 28.7 percent increase from the previous year. The increase in production volume led to an operating income of 37.7 billion yen (US$385.2 million), an 11.1 percent increase from the previous year.

In other areas, mainly the South American region, including countries such as Brazil and Argentina, sales totaled 39.6 billion yen (US$405.1 million), a 31.6 percent increase from the previous year. The operating income totaled 1.1 billion yen (US$11.5 million), a 36.2 percent decrease from the previous year.

”Considering future business conditions, such as an increase in car production and the depreciation of the yen, we have decided to upwardly revise the original forecasts for the full-year financial results,” said Katoh.
(Foreign exchange rates used for the full-year financial result forecast are: US$= 97yen Euro=130 yen)

Forecast for Fiscal Year Ending March 31, 2014
Please see attached chart

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 38 countries and regions (including Japan) and employs more than 130,000 people. Consolidated global sales for the fiscal year ending March 31, 2013, totaled US$38.1 billion. Last fiscal year, DENSO spent 9.4 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 http://www.globaldenso.com, or visit our media website at http://www.densomediacenter.com

Currently, in North America, DENSO employs more than 14,000 people at 28 consolidated companies and affiliates. Of these, 26 are manufacturing facilities located in the U.S., Canada and Mexico. In the U.S. alone, DENSO employs more than 10,000 people in California, Michigan, North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Iowa, Ohio, Alabama and Arkansas. DENSO’s North American consolidated sales totaled US$6.8 billion for the fiscal year ending March 31, 2013.

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(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 97.75 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on September 30, 2013. Billion is used in the American sense of one thousand million.

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Forecast for Fiscal Year Ending March 31, 2014