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DENSO Announces Year-end Financial Results

April 27, 2012

KARIYA, Japan, April 27, 2012 /PRNewswire/ — DENSO Corporation today announced global financial results for the fiscal year ending March 31, 2012:

  • Consolidated net sales totaled 3,154.6 billion yen (US$38.4 billion), a 0.7 percent increase from the previous year.
  • Consolidated operating income totaled 160.7 billion yen (US$2.0 billion), a 14.7 percent decrease from the previous year.
  • Consolidated net income totaled 89.3 billion yen (US$1.1 billion), a 37.6 percent decrease from the previous year.

“Despite the impact of the Great East Japan Earthquake and the Thailand flooding in 2011, a production recovery effort led to an increase in sales from the previous year,” said Nobuaki Katoh, president and CEO of DENSO Corporation. “However, income decreased mainly due to a substantial currency exchange loss by the strong yen.”

In Japan, despite a sales decrease in the first half of the fiscal year, the production recovery in the second half led to an increase in sales to 2,197.6 billion yen (US$26.7 billion), a 4.0 percent increase from the previous year. In spite of a substantial currency exchange loss, the increase in production volumes led to an operating income of 83.9 billion yen (US$1.0 billion), a 32.3 percent increase from the previous year.

In North America, despite the production recovery of Japanese car manufacturers and a production increase in U.S. car manufacturers, the affect of the earthquake led to a decrease in sales to 512.1 billion yen (US$6.2 billion), a 4.5 percent decrease from the previous year. Operating income totaled 8.8 billion yen (US$106.7 million), a 65.4 percent decrease from the previous year.

In Europe, despite an increase of car exports by European car manufacturers, a substantial currency exchange loss led to a decrease in sales to 387.2 billion yen (US$4.7 billion), a 3.5 percent decrease from the previous year. Due to a weak product mix, operating income totaled 6.4 billion yen (US$77.6 million), a 41.6 percent decrease from the previous year.

In Asia and Oceania, despite the recovery of car production of Japanese car manufacturers, the affect of the earthquake and the Thailand flooding led to a decrease in sales to 626.7 billion yen (US$7.6 billion), a 3.9 percent decrease from the previous year. Operating income totaled 59.5 billion yen (US$723.8 million), a 28.3 percent decrease from the previous year due to a weak product mix.

In other areas, mainly the South American region, including countries like Brazil and Argentina, sales totaled 57.7 billion yen (US$702.4 million), a 4.3 percent decrease from the previous year. Operating income totaled 3.2 billion yen (US$38.6 million), a 51.0 percent decrease from the previous year.

“For the new fiscal year we expect an increase in sales and earnings from the previous year, with the steady increase of vehicle production worldwide,” said Katoh.

Forecast for the Fiscal Year Ending March 31, 2013

               Half-Year Forecast  Current FY Forecast Changes
                                                       from Previous FY
                                                       ----------------
    Net Sales  1,680.0 billion yen 3,420.0 billion yen +265.4 billion yen
               [US$20.4 billion]   [US$41.6 billion]   (+ 8.4 percent)
    ---        ----------------    ----------------    --------------
    Operating
     income    90.0 billion yen    205.0 billion yen   +44.3 billion yen
               [US$1.1 billion]    [US$2.5 billion]    (+ 27.5 percent)
    ---        ---------------     ---------------     ---------------
    Income
     before
     income
     taxes and
     minority
     interests 95.0 billion yen    215.0 billion yen   +51.5 billion yen
               [US$1.2 billion]    [US$2.6 billion]    (+ 31.5 percent)
    ---        ---------------     ---------------     ---------------
    Net income 66.0 billion yen    150.0 billion yen   +60.7 billion yen
               [US$803.0 million]   [US$1.8 billion]   (+ 68.0 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. 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)
U.S. dollar amounts have been translated, for convenience only, at the rate of 82.19 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on March 30, 2012. Billion is used in the American sense of one thousand million.

SOURCE DENSO Corporation


Source: PR Newswire