DENSO Announces First-Half Financial Results

KARIYA, Japan, Oct. 29 /PRNewswire/ -- DENSO Corporation today announced global financial results for the first-half of the fiscal year, which ended Sept. 30, 2010:

• Consolidated net sales totaled 1,589.6 billion yen (US$19.0 billion), a 22.1 percent increase from the previous year.
• Consolidated operating income totaled 124.3 billion yen (US$1.5 billion), a 1,173.4 percent increase from the previous year.
• Consolidated net income totaled 93.7 billion yen (US$1.1 billion), a 1,753.9 percent increase from the previous year.

"The worldwide recovery in car production, especially in Japan, has led to the increase in sales and income, despite the substantial currency exchange losses," said Nobuaki Katoh, president and CEO of DENSO Corporation.

In Japan, an increase in domestic car production, supported by the government's vehicle incentive program and product exports mainly to North America, Asia and Oceania, led to an increase in sales totaling 1,080.7 billion yen (US$12.9 billion), a 21.1 percent increase from the previous year. The increase in production volumes led to an operating income of 57.8 billion yen (US$689.8 million), an increase of 78.1 billion yen (US$931.3 million) from the previous year's operating loss.

In North America, an increase in sales mainly due to General Motors, Chrysler, Toyota and Honda led to an increase in sales to 274.4 billion yen (US$3.3 billion), a 32.7 percent increase from last year. As a result of the increase in production volume, the operating income totaled 14.1 billion yen (US$168.4 million), an increase of 16.8 billion yen (US$200.1 million) from the previous year's operating loss.

In Europe, despite an increase in sales mainly due to BMW, Ford and Land Rover, currency exchange losses led to a decrease in sales to 193.7 billion yen (US$2.3 billion), a 0.2 percent decrease from last year. Due to an increase in production volume, operating income totaled 5.4 billion yen (US$64.2 million), a 115.4 percent increase from the previous year.

In Asia and Oceania, an increase in car production volume for Japanese car manufactures, General Motors and Hyundai Kia Automotive Group in ASEAN countries led to an increase in sales to 320.9 billion yen (US$3.8 billion), a 44.1 percent increase from the previous year. The increase in production volumes led to an operating income of 44.6 billion yen (US$532.2 million), a 61.1 percent increase from the previous year.  

In other areas, mainly the South American region, including countries such as Brazil and Argentina, sales totaled 31.0 billion yen (US$370.3 million), a 6.9 percent increase from the previous year, and operating income totaled 4.0 billion yen (US$47.8 million), a 12.5 percent increase from the previous year.

"For the second-half of the year, due to substantial currency exchange losses and an increase of materials cost, we forecast a decrease of operating income from the previous year, but with the steady results of the first-half financial results, we have made an upward revision to our full-year forecasts for the fiscal year ending March 31, 2011," said Katoh.

"In continuing efforts to realize future growth, we will focus on vehicle electrification, improved fuel consumption and CO2 emissions reduction, as well as developing products for emerging markets such as China and India," Katoh added.

Forecast for Fiscal Year Ending March 31, 2011

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.

In the Americas, DENSO employs more than 16,000 people with consolidated sales totaling US$5.7 billion for the fiscal year ended March 31, 2010.

(Notes)

U.S. dollar amounts have been translated, for convenience only, at the rate of 83.82 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on September 30, 2010. Billion is used in the American sense of one thousand million.

SOURCE DENSO Corporation