DENSO Announces First-Quarter Financial ResultsNet sales and operating income decrease for the first time since quarterly results reporting began in FY2003
KARIYA, Japan, July 30 /PRNewswire/ -- DENSO Corporation today announced global financial results for the first quarter ended June 30, 2008: -- Consolidated net sales totaled 983.9 billion yen (US$9.2 billion), a slight decrease from the previous year. -- Consolidated operating income totaled 74.2 billion yen (US$696.8 million), a 20.6 percent decrease from the previous year. -- Consolidated net income totaled 51.7 billion yen (US$485.4 million), a 23.3 percent decrease from the previous year. "Sales decreased mainly due to the decrease in car production in North America and substantial currency exchange loss, despite increases in the export of vehicles to emerging countries and car production for Japanese auto manufacturers in ASEAN countries and China," said Sadahiro Usui, managing officer of DENSO Corporation. "A decrease in sales and substantial currency exchange loss led to a decrease in operating income." In Japan, sales totaled 650.7 billion yen (US$6.1 billion), a 0.5 percent increase from the previous year. Despite a sales increase led by the growing export of vehicles and cost reduction efforts, substantial currency exchange loss and rising raw materials costs led to operating income of 31.4 billion yen (US$295.0 million), a 40.6 percent decrease from the previous year. In North, Central and South America, a decrease in sales mainly to the three major American automakers, resulting from the slowdown in car production in North America, led to a decrease in sales to 190.9 billion yen (US$1.8 billion), a 15.2 percent decrease from the previous year. Operating income decreased to 10.8 billion yen (US$101.6 million), a decrease of 23.7 percent from the previous year. The decline in production volume and currency exchange loss resulted in the decrease in operating income. In Europe, sales totaled 163.9 billion yen (US$1.5 billion), a 4.4 percent increase from the previous year. Operating income totaled 7.0 billion yen (US$65.6 million), a 7.3 percent increase from the previous year. The sales expansion to Fiat and other automakers for air conditioning systems contributed to the increase in sales and operating income. In Asia and Oceania, sales totaled 152.2 billion yen (US$1.4 billion), a 3.3 percent increase from the previous year, due to continued growth in car production volume for Japanese auto manufacturers in ASEAN countries and China. Operating income totaled 23.1 billion yen (US$217.3 million), a 24.5 percent increase from the previous year. In addition to an increase in production volume of air conditioning systems to Toyota, and diesel common rail systems to Isuzu and Mitsubishi in Thailand, the stable expansion of China operations resulted in an increase in operating income. "Considering the severe business environment, including the trend of decreases in car production in North America and rising raw materials costs in the second quarter, we have revised the half-year forecast for the fiscal year ending March 31, 2009," said Usui. "We have also reflected the changes in the half-year forecasts to our full-year forecasts."
Forecast for First-Half Fiscal Year Ending September 30, 2008
Half-Year Half-year Changes from
Forecast Forecast Previous
(Original) (Revised) First-half
1,950.0 1,920.0 - 1.4 percent
Net Sales billion yen billion yen
(US $18.3 (US $18.0
billion) billion)
Income before income 140.0 129.4 - 27.5 percent
taxes and minority billion yen billion yen
interests (US $1.3 (US $1.2
billion) billion)
Net Income 91.0 76.0
billion yen billion yen - 35.8 percent
(US $855.1 (US $714.2
million) million)
Forecast for Fiscal Year Ending March 31, 2009
FY Forecast FY Forecast Changes from
(Original) (Revised) Previous FY
Net Sales 4,030.0 4,000.0 - 0.6 percent
billion yen billion yen
(US $37.9 (US $37.6
billion) billion)
Income before income 308.0 297.4 - 18.5 percent
taxes and minority billion yen billion yen
interests (US $2.9 (US $2.8
billion) billion)
Net Income 200.0 185.0
billion yen billion yen - 24.3 percent
(US $1.9 (US $1.7
billion) billion)
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced automotive technology, systems and components. Worldwide, the company employs approximately 119,000 people in 32 countries and regions, including Japan. Consolidated global sales for the fiscal year ended March 31, 2008 totaled US$40.2 billion. For more information, go to www.globaldenso.com , or visit our media website at www.densomediacenter.com . In the Americas, DENSO employs more than 17,000 people with consolidated sales totaling US$8.3 billion for the fiscal year ended March 31, 2008. For more information, go to www.densomedia-na.com. (Notes) U.S. dollar amounts have been translated, for convenience only, at the rate of 106.42 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on June 30, 2008. Billion is used in the American sense of one thousand million.
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