DENSO Announces First-half Financial Results
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1-1 Showa-cho Kariya
Press release date: October 31, 2007
October 31, 2007
Global Consolidated Net Sales rise 14.5 percent
KARIYA (Japan) DENSO Corporation today announced global financial results for the first half year ended September 30, 2007:
o Consolidated net sales totaled 1,947.8 billion yen (US$16.9 billion), a 14.5 percent increase from the previous year. o Consolidated operating income totaled 169.1 billion yen (US$1.5 billion), a 22.3 percent increase from the previous year. o Consolidated net income totaled 118.3 billion yen (US$1.0 billion), a 25.7 percent increase from the previous year.
"Sales growth was mainly due to the increase in overseas car production for Japanese auto manufacturers and the depreciated yen," said Koji Kobayashi, senior managing director of DENSO Corporation. "In spite of rising raw material costs and the increases in labor and depreciation costs, increased production volume and foreign exchange gain led to an increase in income."
In Japan, sales totaled 1,309.1 billion yen (US$11.3 billion), an 8.1 percent increase from the previous year. Despite a sales increase led by growing export of vehicles and sales expansion for Lexus models, the increase in depreciation costs associated with a tax law change in Japan and rising material costs led to operating income of 95.3 billion yen (US$825.3 million), a 2.5 percent decrease from the previous year.
In North, Central and South America, increased production volume for Japanese auto manufacturers and sales expansion to General Motors and Ford led to an increase in sales to 429.7 billion yen (US$3.7 billion), a 15.8 percent increase from the previous year. Operating income increased to 23.3 billion yen (US$202.2 million), an increase of 71.4 percent from the previous year. Increased production volume and cost reduction efforts resulted in an increase in operating income.
In Europe, sales expansion to Ford, Fiat, OPEL and PSA led to 298.7 billion yen (US$2.6 billion) in sales, a 25.1 percent increase from the previous year. Operating income more than doubled from 5.1 billion yen (US$44.3 million) the previous year to 11.4 billion yen (US$99.1 million), due to increased production volumes of air conditioners in the Czech Republic, Italy and Spain, and diesel common rail systems in Hungary.
In Asia and Oceania, sales totaled 298.8 billion yen (US$2.6 billion), a 37.1 percent increase from the previous year, thanks to the recovering ASEAN automotive market and strong production from Japanese auto manufacturers in China. Operating income totaled 38.3 billion yen (US$331.9 million), a 79.2 percent increase from the previous year. In addition to the stable expansion of China operations, sales expansion of air conditioners in Indonesia and diesel common rail systems in Thailand resulted in the significant increase in operating income.
"As a result of our good financial results in this interim period, we have revised and raised our fiscal year 2007 estimate announced on April 26, 2007," said Kobayashi.
Forecast for Fiscal Year Ending March 31, 2008
Revised FY Forecast Changes from Previous FY Net sales 3,950.0 billion yen (US$34.2 billion) + 9.4 percent Operating income 337.0 billion yen (US$2.9 billion) + 11.2 percent Income before income taxes and minority interests 353.0 billion yen (US$3.1 billion) + 10.4 percent Net income 228.0 billion yen (US$2.0 billion) + 11.1 percent DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 112,000 people in 32 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.
In the Americas, DENSO employs more than 17,000 people at 38 companies. For more information, go to www.densomedia-na.com.
U.S. dollar amounts have been translated, for convenience only, at the rate of 115.43 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on September 28, 2007. Billion is used in the American sense of one thousand million.
Contact: Julie Kerr DENSO INTERNATIONAL AMERICA Phone: 248-372-8260 firstname.lastname@example.org