DENSO Announces Third-quarter Financial Results

DENSO Corporation today announced its third quarter global financial results for the nine months ending Dec. 31, 2012: Consolidated net sales totaled 2,569.4 billion yen (US$29.7 billion), a 16.0 percent increase from the previous year. Consolidated operating income totaled 188.0 billion yen (US$2.2 billion), a 128.9 percent increase from the previous year. Consolidated net income totaled 130.8 billion yen (US$1.5 billion), a 259.7 percent increase from the previous year. . “The recovery of car production in Japan and the strong car production in North America and Asia and Oceania led to an increase in both sales and income,” said Kenichiro Ito, executive director of DENSO Corporation.

In Japan, the increase in car production due to the recovery from the earthquake and government subsidies for eco-friendly car purchases, led to an increase in sales to 1,818.0 billion yen (US$21.0 billion), a 16.9 percent increase from the previous year. Despite increase of expenses, the increase in production volume led to an operating income of 125.4 billion yen (US$1.4 billion), a 247.3% percent increase from the previous year.

In North America, an increase of sales for Japanese automakers and GM, Ford and Chrysler led to an increase in sales to 450.3 billion yen (US$5.2 billion), a 28.5 percent increase from the previous year. As a result of the increase in production volume, the operating income totaled 9.2 billion yen (US$106.7 million), 581.1% percent increase from the previous year.

In Europe, a decrease in car production due to the economic downturn led to a decrease in sales to 259.5 billion yen (US$3.0 billion), a 9.4 percent decrease from the previous year, and a decrease in operating income to 0.8 billion yen (US$9.5 million), a 83.3 percent decrease from the previous year.

In Asia and Oceania, the recovery of Japanese auto manufactures’ car production resulted in a sales increase to 540.5 billion yen (US$6.2 billion), a 21.7 percent increase from the previous year. The increase in production volume led to an operating income of 53.1 billion yen (US$613.3 million), a 41.5 percent increase from the previous year.

In other areas, mainly the South American region, including countries such as Brazil and Argentina, sales totaled 45.8 billion yen (US$528.7million), a 4.5 percent increase from the previous year, and the operating income totaled 2.6 billion yen (US$29.6million), a 6.8 percent increase from the previous year.

“Considering the progress of the depreciation of yen, we have revised the assumed exchange rate and have made an upward revision to the year-end sales forecasts,”said Ito.

Forecast for Fiscal Year Ending March 31, 2013