DENSO Announces Year-end Financial Results -- Income back to the black in 12 months --
KARIYA, Japan, April 28 /PRNewswire/ -- DENSO Corporation today announced global financial results for the fiscal year ending March 31, 2010:
- Consolidated net sales totaled 2,976.7 billion yen (US$32.0 billion), a 5.3 percent decrease from the previous year.
- Consolidated operating income totaled 136.6 billion yen (US$1.5 billion), an increase of 173.9 billion yen (US$1.9 billion) from the previous year's operating loss of 37.3 billion yen (US$401.0 million).
- Consolidated net income totaled 73.4 billion yen (US$789.2 million), an increase of 157.5 billion yen (US$1.7 billion) compared to the previous year's consolidated net loss of 84.1 billion yen (US$903.8 million).
"Despite the steady market recovery in emerging countries, substantial currency exchange loss and the primary markets' decline in the first half led to a decrease in sales," said Nobuaki Katoh, president and CEO of DENSO Corporation. "However, with thorough worldwide cost reduction efforts, we were able to turn our income back into the black in the last 12 months."
In Japan, a decrease in domestic car production and a currency exchange loss led to a decrease in sales to 2,041.3 billion yen (US$21.9 billion), a 4.9 percent decrease from the previous year. However, as a result of efforts, such as fixed cost reduction, operating income totaled 40.9 billion yen (US$439.6 million), an increase of 155.6 billion yen (US$1.7 billion) from the previous year.
In North, Central and South America, a decrease in sales mainly to GM and Chrysler and an increase in Toyota car production resulted in sales totaling 532.2 billion yen (US$5.7 billion), a 4.9 percent decrease from the previous year. Operating income totaled 12.9 billion yen (US$138.7 million), a 154.3 percent increase from the previous year as a result of the increase in sales and cost reduction efforts.
In Europe, despite the increased sales to Fiat, sales totaled 411.1 billion yen (US$4.4 billion), an 11.1 percent decrease from the previous year, due to the decrease in car production at Ford and the Japanese auto manufacturers. Operating income totaled 10.7 billion yen (US$114.8 million), a 195.9 percent increase from the previous year. The fixed cost reduction and streamlining efforts led to an increase in operating income.
In Asia and Oceania, sales totaled 534.1 billion yen (US$5.7 billion), a 5.2 percent increase from the previous year, as a result of the car production increase in China and ASEAN countries. Operating income totaled 75.4 billion yen (US$810.1 million), a 24.6 percent increase from the previous year. The increased production volume and streamlining efforts resulted in an increase in operating income.
"Our steady efforts in streamlining business operations have enabled us to vastly improve our earnings," said Katoh. "For the new fiscal year, along with continuing these efforts, we will become more aggressive to realize future growth by directing resources toward electrification, improved fuel consumption, and CO2 reduction for cars, as well as increase products for emerging markets such as China and India."
Forecast for Fiscal Year Ending March 31, 2011
Current FY Forecast
Changes from Previous FY
1,500.0 billion yen
3,060.0 billion yen
+83.3 billion yen
61.0 billion yen
138.0 billion yen
+1.4 billion yen
Income before income taxes and minority interests
67.5 billion yen
150.0 billion yen
+3.1 billion yen
43.0 billion yen
98.0 billion yen
+24.6 billion yen
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 120,000 people in 34 countries and regions, including Japan. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges in Japan. For more information, go to www.globaldenso.com.
U.S. dollar amounts have been translated, for convenience only, at the rate of 93.04 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on March 31, 2010. Billion is used in the American sense of one thousand million.
SOURCE DENSO Corporation