KARIYA, Japan, Jan. 31 /PRNewswire/ -- DENSO Corporation today announced global financial results for the third quarter ended December 31, 2007:
-- Consolidated net sales totaled 1,029.2 billion yen (US$9.0 billion),
a 10.9 percent increase from the previous year.
-- Consolidated operating income totaled 104.1 billion yen (US$909.6
million), a 16.9 percent increase from the previous year.
-- Consolidated net income totaled 73.8 billion yen (US$644.3 million),
a 19.5 percent increase from the previous year.
"The sales growth was mainly due to the increase in domestic and overseas car production for Japanese auto manufacturers," said Koji Kobayashi, senior managing director of DENSO Corporation. "In spite of the increases in depreciation and labor costs, increased production volume and cost reduction efforts led to an increase in operating income."
In Japan, sales totaled 713.0 billion yen (US$6.2 billion), a 7.1 percent increase from the previous year. Increased export of vehicles contributed to the increase in sales. Despite production volume increases and cost reduction efforts, the increase in depreciation costs associated with a tax law change in Japan led to operating income of 64.9 billion yen (US$567.1 million), a 7.6 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 197.9 billion yen (US$1.7 billion), a 6.8 percent increase from the previous year. Operating income increased to 9.2 billion yen (US$80.2 million), an increase of 64.4 percent from the previous year. Increased production volume of navigation systems and air conditioners and cost reduction efforts resulted in an increase in operating income.
In Europe, sales expansion to Ford, Fiat and PSA raised sales to 156.5 billion yen (US$1.4 billion), an 18.2 percent increase from the previous year. Operating income increased to 5.8 billion yen (US$50.5 million), an increase of 76.2 percent from the previous year, as a result of increased production volume of air conditioners and diesel common rail systems.
In Asia and Oceania, sales totaled 157.6 billion yen (US$1.4 billion), a 27.6 percent increase from the previous year, thanks to the increased car production for Japanese auto manufacturers in ASEAN and China. Operating income more than doubled from 11.8 billion yen (US$102.9 million) the previous year to 24.5 billion yen (US$213.9 million), due to the sales expansion of air conditioners and diesel common rail systems and the stable expansion of operations in China.
"Considering the recent rapid appreciation of the yen and the possibility of an economic slowdown, we have kept our fiscal year 2007 estimate announced on October 31, 2007," said Kobayashi.
Forecast for Fiscal Year Ended March 31, 2008
Changes from
FY Forecast Previous FY
Net Sales 3,950.0 billion yen + 9.4 percent
(US$34.5 billion)
Operating Income 337.0 billion yen + 11.2 percent
(US$2.9 billion)
Income before income taxes
and minority interests 353.0 billion yen + 10.4 percent
(US$3.1 billion)
Net Income 228.0 billion yen + 11.1 percent
(US$2.0 billion)
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 with consolidated sales totaling US$6.5 billion for the fiscal year ended March 31, 2007. For more information, go to www.densomedia-na.com.
(Notes)
U.S. dollar amounts have been translated, for convenience only, at the rate of 114.49 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on December 27, 2007. Billion is used in the American sense of one thousand million.