DENSO Announces First-quarter Financial Results Upward revision to the first-half and full-year forecast

KARIYA, Japan, July 30 /PRNewswire/ -- DENSO Corporation today announced global financial results for the first quarter ending June 30, 2010:

  • Consolidated net sales totaled 802.8 billion yen (US$9.1 billion), a 37.3 percent increase from the previous year.
  • Consolidated operating income totaled 70.7 billion yen (US$798.6 million), an increase of 85.9 billion yen (US$970.3 million) from the previous year's operating loss of 15.2 billion yen (US$171.7 million).
  • Consolidated net income totaled 46.0 billion yen (US$519.7 million), an increase of 48.7 billion yen (US$550.0 million) from the previous year's consolidated net loss of 2.7 billion yen (US$30.3 million).

"Despite a currency exchange loss, the sales and operating income increased due to the recovery of worldwide car production from last year," said Sadahiro Usui, managing officer of DENSO Corporation.

In Japan, the recovery of domestic car production, supported by the government's vehicle incentive program and an increase of vehicle export, led to an increase in sales to 529.8 billion yen (US$6.0 billion), a 33.8 percent increase from the previous year. Despite currency exchange losses, an increase in production volume and cost reduction efforts led to an operating income of 33.3 billion yen (US$376.2 million), an increase of 58.0 billion yen (US$655.4 million) from the previous year's operating loss.

In North America, due to the recovery of car production, sales totaled 144.4 billion yen (US$1.6 billion), a 54.0 percent increase from last year. As a result of the increase in production volume, the operating income totaled 7.6 billion yen (US$85.4 million), an increase of 11.1 billion yen (US$126.0 million) from the previous year's operating loss.

In Europe, despite the reduction in vehicle production due to the termination of governments' vehicle incentive programs, sales expansion of diesel engine components and other products resulted in an increase in sales to 104.4 billion yen (US$1.2 billion), a 9.2 percent increase from the previous year. Due to an increase in production volume, operating income totaled 3.6 billion yen (US$40.5 million), a 164.3 percent increase from the previous year.

In Asia and Oceania, an increase in car production volume for Japanese auto manufacturers in China contributed to an increase in sales to 164.0 billion yen (US$1.9 billion), a 73.2 percent increase from the previous year. Thanks to an increase in production volume, operating income totaled 25.7 billion yen (US$290.4 million), a 159.3 percent increase from the previous year.

In other areas, which mainly applies to the South American region, including countries such as Brazil and Argentina, sales totaled 15.5 billion yen (US$174.7 million), a 16.2 percent increase from the previous year, and operating income totaled 1.8 billion yen (US$20.8 million), a 28.6 percent decrease from the previous year.

"Considering the strong financial results in the first quarter and the current currency exchange rates, we have decided to upwardly revise the original forecasts for the first-half and full-year financial results," said Usui. "For the full-year financial result forecasts, it is difficult to make estimates on the vehicle production trend and business environment of the second-half at this moment, so we have only changed the preconditions for the currency rate.

"While continuing efforts to streamline business operations and remain profitable operating at 70 percent production capacity compared to the level in Fiscal Year ending March 2008, we will accelerate business growth for the second quarter and beyond, by committing resources to the development of technologies that contribute to better fuel efficiency and less CO2 reduction, and products for emerging markets," added Usui.

Forecast for First-Half Fiscal Year Ending September 30, 2010


Half-Year Forecast
(Original)

Half-Year Forecast
(Revised)

Changes from
Previous First-half

Net Sales

1,500.0 billion yen
[US$17.0 billion]

1,570.0 billion yen
[US$17.7 billion]

+267.8 billion yen
(20.6 percent)

Operating income

61.0 billion yen
[US$689.4 million]

107.0 billion yen
[US$1.2 billion]

+97.2 billion yen
(991.8 percent)

Income before income taxes and minority interests

67.5 billion yen
[US$762.9 million]

113.9 billion yen
[US$1.3 billion]

+99.6 billion yen
(696.5 percent)

Net income

43.0 billion yen
[US$486.0 million]

74.0 billion yen
[US$836.3 million]

+68.9 billion yen
(1351.0 percent)



Forecast for Fiscal Year Ending March 31, 2011


FY Forecast
(Original)

FY Forecast
(Revised)

Changes from
Previous FY

Net Sales

3,060.0 billion yen
[US$34.6 billion]

3,100.0 billion yen
[US$35.0 billion]

+123.3 billion yen
(4.1 percent)

Operating income

138.0 billion yen
[US$1.6 billion]

177.0 billion yen
[US$2.0 billion]

+40.4 billion yen
(29.6 percent)

Income before income taxes and minority interests

150.0 billion yen
[US$1.7 billion]

189.4 billion yen
[US$2.1 billion]

+42.5 billion yen
(28.9 percent)

Net income

98.0 billion yen
[US$1.1 billion]

124.0 billion yen
[US$1.4 billion]

+50.6 billion yen
(68.9 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 34 countries and regions (including Japan) and employs approximately 120,000 people. Consolidated global sales for the fiscal year ending March 31, 2010, totaled US$32.0 billion. Last fiscal year, DENSO spent 9.1 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)

U.S. dollar amounts have been translated, for convenience only, at the rate of 88.48 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on June 30, 2010. Billion is used in the American sense of one thousand million.

SOURCE DENSO Corporation



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