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| Oct 28, 2005 |
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DENSO Announces First-half Financial Results
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-Global consolidated net sales rise more than 11 percent-
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TOKYO, Japan- DENSO Corporation today announced global financial results for the first half year ended September 30, 2005:
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Consolidated net sales totaled 1,506.6 billion yen (US$13.3 billion), an 11.2 percent increase from the previous year. |
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Operating income totaled 119.7 billion yen (US$1.1 billion), an 11.6 percent increase from the previous year. |
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Income before income taxes and minority interests for the year totaled 119.3 billion yen (US$1.1 billion), a 6.2 percent increase from the previous year |
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Consolidated net income totaled 67.2 billion yen (US$594.7 million), a 1.2 percent increase from the previous year. |
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"The financial results for this first half year were fairly satisfactory," said Koji Kobayashi, managing officer of DENSO Corporation. "The increase in domestic and overseas car production for Japanese auto manufacturers contributed to the increase in sales, and the increase in production volume in Japan and Asia and Oceania contributed to the increase in operating income."
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In Japan, sales totaled 1,081.2 billion yen (US$9.6 billion), an 8.7 percent increase from the previous year, and operating income totaled 92.1 billion yen (US$815.0 million), a 5.7 percent increase from the previous year. A rise in the popularity of car navigation systems and an increase in demand for hybrid vehicle components contributed to the increase in sales. The increase in operating income was led by the increase in production volume.
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In North, Central and South America, combined sales totaled 327.1 billion yen (US$2.9 billion), an 11.1 percent increase from the previous year. The increase in car production for Japanese auto manufacturers and the sales expansion of car navigation systems in North America resulted in this increase. In spite of production volume increases, operating income decreased to 11.8 billion yen (US$104.4 million), a decrease of 22.4 percent, due to the extra costs related to production transfer from Michigan to the new plant in Arkansas and new additions to the product line-up.
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In Europe, increased sales of car air conditioners and car navigation systems led to sales of 196.4 billion yen (US$1.7 billion), a 7.0 percent increase from the previous year. Operating income improved from the previous year to a 0.8 billion yen (US$7.1 million) operating loss, with the contribution of increased production volume in the Czech Republic.
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In Asia and Oceania, sales totaled 183.6billion yen (US$1.6 billion), a 44.4 percent increase from the previous year, and operating income totaled 16.5 billion yen (US$146.0 million), a 100.7 percent increase from the previous year. The Toyota Innovative International Multi-purpose Vehicle, and the increase in car production for Japanese auto manufacturers, especially in ASEAN countries, resulted in an increase in both sales and operating income.
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"As a result of our good financial results in this interim period, we have revised and raised our fiscal year 2005 estimates announced on April 28, 2005," said Kobayashi.
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Forecast for Fiscal Year Ended March 31, 2006
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Revised FY Forecast |
Changes from Previous FY |
| Net Sales |
3,070.0 billion yen
(US$27.2 billion) |
+ 9.6 percent |
| Operating income |
255.0 billion yen
(US$2.3 billion) |
+ 19.2 percent |
Income before
income taxes
and minority
interests |
254.8 billion yen
(US$2.3 billion) |
+ 14.0 percent |
| Net Income |
150.0 billion yen
(US$1.3 billion) |
+ 13.1 percent |
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DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 104,000 people in 31 countries and regions, including Japan. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in Japan.
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(Notes)
U.S. dollar amounts have been translated, for convenience only, at the rate of 113 yen = US$1, the approximate exchange rate prevailing on September 30, 2005. Billion is used in the American sense of one thousand million.
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