DENSO Announces Third-quarter Financial Results
- Upward revision to the full-year forecast -
Kariya (Japan) ―DENSO Corporation today announced its third quarter global financial results for the nine months ending Dec. 31, 2009:
· Consolidated net sales totaled 2,118.2 billion yen (US$23.0 billion), a 19.5 percent decrease from the previous year.
· Consolidated operating income totaled 78.8 billion yen (US$855.4 million), a 7.5 percent decrease from the previous year.
· Consolidated net income totaled 50.4 billion yen (US$546.9million), a 35.8 percent increase from the previous year.
“Despite the positive effects from each country’s incentive programs, our sales and operating income have decreased, mainly due to vehicle inventory adjustments by car manufacturers in the first half of the year and a substantial currency exchange loss,” said Sadahiro Usui, managing officer of DENSO Corporation. “However, our steady efforts in reducing fixed costs improved our income ratio and the fundamental direction of our financial results is toward a recovery.”
In Japan, a decrease in domestic car production and product exports, mainly to North America and Europe, as well as currency exchange losses led to a decrease in sales to 1,463.2 billion yen (US$15.9 billion), a 19.4 percent decrease from the previous year. However, efforts such as a reduction in fixed costs led to an operating income of 13.7 billion yen (US$149.2million), a 380.2 percent increase from the previous year.
In North, Central and South America, despite an increase in sales to Toyota, a decrease in sales mainly to General Motors and Ford led to a decrease in sales to 378.8 billion yen (US$4.1 billion), a 20.5 percent decrease from last year. In spite of cost reduction efforts, a decrease in sales led to an operating income of 11.0 billion yen (US$119.1 million), a 14.8 percent decrease from the previous year.
In Europe, despite an increase in sales to Fiat and BMW, lower car production from Toyota resulted in a decrease in sales to 299.5 billion yen (US3.3 billion), a 21.2 percent decrease from the previous year. As a result of the decrease in sales, the operating income totaled 5.7 billion yen (US$61.7million), a 25.8 percent decrease from the previous year, despite cost reduction efforts.
In Asia and Oceania, a decrease in car production volumes in ASEAN countries resulted in a decrease in sales to 373.5 billion yen (US$4.1 billion), an 11.6 percent decrease from the previous year, despite continued growth in car production volumes in China. Operating income totaled 51.2 billion yen (US$555.7 million), a 10.2 percent increase from the previous year.
“Considering recent trends of car production worldwide and steady results from our cost reduction efforts, we have revised the full-year forecasts for the fiscal year ending March 31, 2010,” said Usui. “The future business environment still remains unclear, but we will continue to work to improve earnings.”
Forecast for Fiscal Year Ending March 31, 2010
||FY Forecast(Previous announced)
||Changes fromPrevious FY
||2,800.0 billion yen
|2,950.0 billion yen
|-192.7 billion yen
||36.0 billion yen
|110.0 billion yen
|+147.3 billion yen
( - )
|Income before income taxes and minority interests
||42.0 billion yen
|121.1 billion yen
|+220.3 billion yen
( - )
||20.0 billion yen
|75.0 billion yen
|+159.1 billion yen
( - )
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 120,000 people in 33 countries and regions, including Japan. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in Japan. For more information, go to www.globaldenso.com.
U.S. dollar amounts have been translated, for convenience only, at the rate of 92.10 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on December 30, 2009. Billion is used in the American sense of one thousand million.