DENSO Announces First-quarter Financial Results

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

DENSO Corporation today announced global financial results for its first quarter that ended on June 30, 2013:

  • Consolidated net sales totaled 997.6billion yen (US$10.1 billion), a 13.1 percent increase from the previous year.
  • Consolidated operating income totaled 102.1 billion yen (US$1.0 billion), a 30.7 percent increase from the previous year.
  • Consolidated net income totaled 86.0 billion yen (US$872.7 million), a 75.2 percent increase from the previous year.

"Despite a decrease in vehicle production in Japan, sales and operating income increased due to steady vehicle production in North America and the emerging markets," said Kenichiro Ito, executive director of DENSO Corporation. "The weak yen also had an effect to the increase in sales and operating income."

In Japan, along with the decrease in vehicle production, the increase of export sales and the effect of the weak yen led to an increase in sales to 653.6 billion yen (US$6.6 billion), a 5.3 percent increase from the previous year. Despite a decrease in production volume, currency exchange gain and cost reduction efforts led to an operating income of 75.3 billion yen (US$763.5 million), a 36.6 percent increase from the previous year.

In North America, an increase in vehicle production and the effect of the weak yen led to an increase in sales to 207.3 billion yen (US$2.1 billion), a 29.9 percent increase from the previous year. As a result of the increase in production volume, the operating income totaled 6.3 billion yen (US$63.4 million), a 19.6 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 117.9 billion yen (US$1.2 billion), a 26.1 percent increase from the previous year. Despite increase in production volume, due to the increase in labor cost and other expenses, operating income totaled 1.7 billion yen (US$17.5 million), a 4.7 percent decrease from the previous year.

In Asia and Oceania, the increase of vehicle production and the effect of the weak yen resulted in a sales increase to 231.5 billion yen (US$2.3 billion), a 32.1 percent increase from the previous year. The increase in production volume led to an operating income of 21.4 billion yen (US$216.6 million), a 25.6 percent increase from the previous year.

In other areas, mainly in reference to the South American region, sales totaled 21.2 billion yen (US$214.6 million), a 51.3 percent increase from the previous year. The operating income totaled 1.0 billion yen (US$9.7 million), a 1.8 percent decrease from the previous year.

"Considering the positive financial results in the first-quarter, we have decided to upwardly revise the original forecasts for the first-half and full-year financial results, " said Ito. (Foreign exchange rates used for the full-year financial result forecast are: US$= 94yen Euro=124 yen)

Forecast for First-Half Fiscal Year Ending September 30, 2013
See attached chart

Forecast for Fiscal Year Ending March 31, 2014
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 36 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 17,000 people at 32 consolidated companies and affiliates. Of these, 28 are manufacturing facilities located in the U.S., Canada and Mexico. In the U.S. alone, DENSO employs more than 11,000 people in California, Michigan, North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Iowa, Ohio, and Arkansas. DENSO’s North American consolidated sales totaling US$6.8 billion for the fiscal year ending March 31, 2013.

(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 98.59 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on June 28, 2013. Billion is used in the American sense of one thousand million.

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