DENSO : Announces First -quarter Financial Results

Jul. 31, 2015 Investors News Releases

KARIYA (Japan) ―DENSO Corp. today announced its global financial results for the first quarter ending June 30, 2015 for fiscal year ending March 31, 2016:

・Consolidated revenue totaled 1,106.0 billion yen (US$9.0 billion), a 7.6 percent increase from the previous year.

・Consolidated operating profit totaled 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 totaled 73.9 billion yen (US$603.2 million), a 17.2 percent increase from the previous year.

"DENSO's revenue and operating profit increased due to an overseas production volume increase and the growth in sales in addition to the impact of the weak yen," said Kenichiro Ito, executive director of DENSO Corporation.

In Japan, a production volume decrease mainly in compact cars led to a decrease in revenue to 624.0 billion yen (US$5.1 billion), a 1.5 percent decrease from the previous year. The decrease in production volume and the increase in expenses led to an operating profit of 43.3 billion yen (US$353.5 million), a 14.7 percent decrease from the previous year.

In North America, an increase in car production, boosted by the steady economic growth, led to an increase in revenue to 283.6 billion yen (US$2.3 billion), a 26.3 percent increase from the previous year. As a result of the increase in production volume, the operating profit totaled 14.7 billion yen (US$120.4 million), an 88.3 percent increase from the previous year.

In Europe, car production increased due to the recovery of the economic slump, which led to an increase in revenue to 152.5 billion yen (US$1.2 billion), a 10.5 percent increase from the previous year. Due to the increase in production volume, the operating profit totaled 4.2 billion yen (US$34.6 million), a 15.4 percent increase from the previous year.

In Asia, the increase of car production, mainly in China, resulted in a revenue increase of 285.1 billion yen (US$2.3 billion), a 16.5 percent increase from the previous year. The increase 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 increase from the previous year.

In other areas, mainly the South American region, including Brazil and Argentina, revenue totaled 16.0 billion yen (US$130.5 million), a 13.0 percent decrease from the previous year. The operating loss totaled 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. (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)

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