Year-end financial results announced by DENSO Corporation
DENSO Corporation announced its global financial results for the fiscal year ending March 31, 2016:
- Consolidated revenue totalled 4,524.5 billion yen (US$40.2 billion), a 5.0 percent increase from the previous year.
- Consolidated operating profit totalled 315.7 billion yen (US$2.8 billion), a 4.7 percent decrease from the previous year.
- Consolidated profit attributable to owners of the parent company totalled 244.3 billion yen (US$2.2 billion), 5.5 percent lower than the previous year.
Koji Arima, president and CEO of DENSO Corporation commented, "DENSO’s revenue grew as a result of increased overseas production volumes and a strong growth in sales, in addition to the impact of the weak yen. However, despite a focus on cost reduction and an encouraging increase in production volumes, operating profit decreased due to the heavier emphasis on research and development and the start-up costs for new products.”
Japan experienced a reduction in production volumes, particularly of compact cars, resulting in a decrease in revenue to 2,646.6 billion yen (US$23.5 billion), 0.7 percent lower than the previous year. A rise in R&D expenditure for future growth, in addition to the decrease in production volume and other expenses, led to an operating profit of 154.5 billion yen (US$1.4 billion), 21.5 percent lower than the previous year.
North America saw a rise in car production which, boosted by the steady economic growth, led to an increase in revenue to 1,112.7 billion yen (US$9.9 billion), 15.1 percent higher than the previous year. Operating profit totalled 47.7 billion yen (US$423.4 million), a 20.8 percent increase from the previous year, following a rise in production volumes.
In Europe, car production increased due to the recovery from the economic slump, leading to an increase in revenue to 593.6 billion yen (€4.5 billion), 7.0 percent higher than the previous year. Despite the production volume increase and a growth in sales, the depreciation expenses and other costs for start-up products led to a reduction in the operating profit to 14.4 billion yen (€127.0 million), a 14.3 percent decrease from the previous year.
Asia saw an increase in car production, which resulted in a revenue increase to 1,161.2 billion yen (US$10.3 billion) a 10.6 percent rise from the previous year. An operating profit totalling 96.6 billion yen (US$857.2 million) was bolstered by an increase in production volumes and a focus on cost reduction, resulting in a 19.4 percent rise from the previous year.
The South American region, including Brazil and Argentina, totalled 59.5 billion yen (US$528.0 million) in revenue, a 19.4 percent decrease from the previous year. The operating loss equalled 2.0 billion yen (US$17.8 million).
“For the new fiscal year, despite an increase in production volumes and a strong growth in sales, revenue and operating profit will decrease due to the exchange rate." said Arima.
(Foreign exchange rates used for the next fiscal year are US$= 110 yen, Euro= 125yen)
Forecast for Fiscal Year Ending March 31, 2017
|
| Half-Year Forecast | Full-Year Forecast | Changes from Previous FY |
| Revenue | 2,200.0 billion yen [US$19.5 billion] | 4,500.0 billion yen [US$39.9 billion] | -24.5 billion yen (-0.5 percent) |
| Operating profit | 133.0 billion yen [US$1.2 billion] | 313.0 billion yen [US$2.8 billion] | -2.7 billion yen (-0.9 percent) |
| Profit before income taxes | 148.0 billion yen [US$ 1.3 billion] | 342.0 billion yen [US$3.0 billion] | -5.3 billion yen (-1.5 percent) |
| Profit attributable to owners of the parent company | 102.0 billion yen [US$ 0.9 billion] | 235.0 billion yen [US$2.1 billion] | -9.3 billion yen (-3.8 percent) |
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 112.68 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on Mar 31, 2016. Billion is used in the American sense of one thousand million.