DENSO Announces Year-end Financial Results

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DENSO Corporation

Apr 28, 2011, 09:55 ET

KARIYA, Japan, April 28, 2011 /PRNewswire/ -- DENSO Corporation today announced global financial results for the fiscal year ending March 31, 2011:

  • Consolidated net sales totaled 3,131.5 billion yen (US$37.7 billion), a 5.2 percent increase from the previous year.
  • Consolidated operating income totaled 188.3 billion yen (US$2.3 billion), a 37.8 percent increase from the previous year.
  • Consolidated net income totaled 143.0 billion yen (US$1.7 billion), a 94.8 percent increase from the previous year.

"Despite the affect of the Great East Japan Earthquake, both sales and income increased from the previous year due to the steady increase in car production mainly in North America and Asia," said Nobuaki Katoh, president and CEO of DENSO Corporation.

In Japan, despite a sales decrease due to the Great East Japan Earthquake, the government's vehicle incentive program in the first-half of the fiscal year, and increasing product exports throughout the year led to an increase in sales to 2,112.9 billion yen (US$25.4 billion), a 3.5 percent increase from the previous year. The increase in production volumes and cost reduction efforts led to an operating income of 63.4 billion yen (US$762.3 million), a 55.0 percent increase from the previous year.

In North America, an increase in sales, mainly due to GM, Ford and Chrysler, led to an increase in sales totaling 536.0 billion yen (US$6.4 billion), a 13.0 percent increase from the previous year. Operating income totaled 25.4 billion yen (US$305.0 million), a 309.8 percent increase from the previous year as a result of the increase in production volume.

In Europe, despite an increase in sales mainly due to European car manufactures, a substantial currency exchange loss led to a decrease in sales totaling 401.3 billion yen (US$4.8 billion), a 2.4 percent decrease from the previous year. The increase in production volume led to an increase in operating income to 10.9 billion yen (US$131.4 million), a 2.3 percent increase from the previous year.

In Asia and Oceania, strong car production of Japanese car manufactures and Hyundai Kia Automotive Group led to an increase in sales to 652.5 billion yen (US$7.8 billion), a 22.2 percent increase from the previous year. Operating income totaled 83.0 billion yen (US$998.4 million), a 10.2 percent increase from the previous year due to the increase in production volumes.

In other areas, mainly the South American region, including countries like Brazil and Argentina, sales totaled 60.3 billion yen (US$725.6 million), a 4.3 percent increase from the previous year. The operating income totaled 6.5 billion yen (US$77.8 million), a 3.6 percent decrease from the previous year.

"Since the affects of the Great East Japan Earthquake to our company still remain unclear, the full-year forecast for the fiscal year ending March 31, 2012, is undecided. We will announce the forecast as soon as we assess the impact," said Katoh. "For the time being, the recovery from the earthquake will be our top priority."

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.

In the Americas, DENSO employs more than 16,000 people with consolidated sales totaling US$6.4 billion for the fiscal year ended March 31, 2011.

(Notes)

U.S. dollar amounts have been translated, for convenience only, at the rate of 83.15 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on March 31, 2011. Billion is used in the American sense of one thousand million.

SOURCE DENSO Corporation