DENSO Announces First-half Financial Results

DENSO announced its global financial results for the first half of the fiscal year that ends March 31, 2018:

• Consolidated revenue totaled 2,363.5 billion yen (US$21.0 billion), a 8.6 percent increase from the previous year.
• Consolidated operating profit totaled 204.4 billion yen (US$1.8 billion), a 43.3 percent increase from the previous year.
• Consolidated profit attributable to owners of the parent company totaled 154.2 billion yen (US$1.4 billion), a 58.2 percent increase from the previous year.
• Annual dividend payment will be 130 yen per one stock, a 5 yen increase from the previous forecast on each of interim and fiscal year-end

“DENSO’s revenue increased due to an increase in vehicle production, as well as sales expansion. DENSO’s operating profit also saw an increase due to the production volume increase and company cost reduction efforts,” said Koji Arima, president and CEO of DENSO Corporation.

In Japan, a rise in vehicle production resulted in an increase in revenue to 1,406.9 billion yen (US$12.5 billion), an 8.9 percent growth from the previous year. As a result of the increase in production volume and cost reduction efforts, the operating profit totaled 105.5 billion yen (US$935.8 million), a 100.7 percent increase from the previous year.

In North America, a sales expansion led to an increase in revenue to 548.1 billion yen (US$4.9 billion), a 6.1 percent increase from the previous year. On the other hand, the operating profit totaled 20.8 billion yen (US$184.5 million), which resulted in a 29.5 percent decrease from the previous year due, which is attributed to depreciation increases.

In Europe, the slight rise in vehicle production by the moderate recovery of the market led to an increase in revenue to 309.9 billion yen (US$2.7 billion), a 10.6 percent increase from the previous year. Due to depreciation increases, operating profit decreased to 8.9 billion yen (US$78.7 million), a 5.1 percent decrease from the previous year.

In Asia, an increase in both vehicle production and sales expansion resulted in an increase in revenue to 619.2 billion yen (US$5.5 billion), a 14.8 percent rise from the previous year. As a result of the increase in production volume, an operating profit totaled 62.8 billion yen (US$557.5 million), a 36.3 percent growth from the previous year.

In other areas, mainly the South American region, including Brazil and Argentina, revenue totaled 40.4 billion yen (US$358.7 million), a 32.7 percent increase from the previous year. The operating profit totaled 7.1 billion yen (US$62.8 million).

“After considering our first-half financial results, and the latest movement in the foreign exchange markets, we have revised up our full-year financial result forecasts. We also revised up dividend payment for both of interim and fiscal year-end,” said Koji Arima.

(Foreign exchange rates used for the full-year are US$= 111 yen, Euro= 126 yen)

Forecast for Fiscal Year Ending March 31, 2018