DENSO Announces First-quarter Financial Results
- Consolidated revenue totalled 1,106.0 billion yen (US$9.0 billion), a 7.6 percent rise from the previous year.
- Consolidated operating profit totalled 86.7 billion yen (US$707.7 million), a 5.5 percent increase from the previous year.
- Consolidated profit attributable to owners of the parent company totalled 73.9 billion yen (US$603.2 million), 17.2 percent more than the previous year.
Kenichiro Ito, Executive Director of DENSO Corporation, said: "DENSO’s revenue and operating profit grew due to an overseas production volume increase and the growth in sales in addition to the impact of the weak yen.”
In Japan, a production volume decrease mainly in compact cars led to a drop in revenue to 624.0 billion yen (US$5.1 billion), a 1.5 percent reduction from the previous year. The decline in production volume and the increase in expenses led to an operating profit of 43.3 billion yen (US$353.5 million), 14.7 percent less than the previous year.
In North America, a surge in car production, boosted by the steady economic growth, led to a jump in revenue to 283.6 billion yen (US$2.3 billion), a 26.3 percent growth from the previous year. As a result of larger production volume, the operating profit totalled 14.7 billion yen (US$120.4 million), an 88.3 percent improvement on the previous year.
DENSO’s revenue and operating profit grew due to an overseas production volume increase and the growth in sales in addition to the impact of the weak yen
In Europe, car production increased due to the recovery of the economic slump, which led to an upturn in revenue to 152.5 billion yen (Euro 1.14 billion), 15 percent up on the previous year. Due to the expansion in production volume, the operating profit totalled 4.2 billion yen (Euro 34.6 million), a 22 percent rise from the previous year.
In Asia, the higher rate of car production, mainly in China, resulted in revenue growth of 285.1 billion yen (US$2.3 billion), 16.5 percent more than the previous year. The gain in cost reduction effort as well as in production volume led to an operating profit of 21.3 billion yen (US$173.6 million), a 19.5 percent climb compared to the previous year.
In other areas, mainly the South American region, including Brazil and Argentina, revenue totalled 16.0 billion yen (US$130.5 million), 13.0 percent less than the previous year. The operating loss totalled 0.9 billion yen (US$7.1 million).
"Considering the positive financial results in the first-quarter, as well as the market trend and the depreciation of the yen, we have decided to revise the original forecasts for the first-half and full-year financial results," said Ito.
Forecast for Fiscal Year Ending March 31, 2016
(Foreign exchange rates used for the first-half financial result forecast are US$= 122 yen Euro=135 yen, and for the full-year are: US$= 119 yen Euro=130 yen)
|
| First-Half Forecast (Revised) | Full-Year Forecast (Revised) |
| Revenue | 2,240.0 billion yen [US$18.3 billion] | 4,470.0 billion yen [US$36.5 billion] |
| Operating profit | 170.0 billion yen [US$1.4 billion] | 380.0 billion yen [US$3.1 billion] |
| Profit before income taxes | 192.0 billion yen [US$1.6 billion] | 414.0 billion yen [US$3.4 billion] |
| Profit attributable to owners of the parent company | 130.0 billion yen [US$1.1 billion] | 280.0 billion yen [US$2.3 billion] |
Notes
The above forecasts are created based on the information obtained by the date of this announcement and the actual results may differ due to various causes in the future.
U.S. dollar amounts have been translated, for convenience only, at the rate of 122.45 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on June 30, 2015. Billion is used in the American sense of one thousand million.
Find out more
For more information, go to www.globaldenso.com, or the European website www.denso-europe.com.