DENSO Announces First -quarter Financial Results

DENSO Corporation announced its global financial results for the first quarter ending June 30, 2017 for fiscal year ending March 31, 2018:

• Consolidated revenue totaled 1,164.9 billion yen (US$10.4 billion), a 6.6 percent increase from the previous year.
• Consolidated operating profit totaled 93.2 billion yen (US$831.8 million), a 38.6 percent increase from the previous year.
• Consolidated profit attributable to owners of the parent company totaled 76.7 billion yen (US$684.8 million), a 66.3 percent increase from the previous year.

“DENSO’s revenue increased by the increase of car production and sales expansion as well as operating profit due to the production volume increase and cost reduction efforts.” said Yasushi Matsui, executive director of DENSO Corporation.

In Japan, the increase of car production led to an increase in revenue to 675.7 billion yen (US$6.0 billion), a 9.6 percent increase from the previous year. As a result of the increase in production volume and cost reduction efforts, the operating profit totaled 37.4 billion yen (US$333.5 million), a 163.8 percent increase from the previous year.

In North America, despite of an unpredictable economy, the increase of car production led to an increase in revenue to 281.0 billion yen (US$2.5 billion), a 5.6 percent increase from the previous year. As a result, the operating profit totaled 17.0 billion yen (US$151.5 million), a 2.3 percent increase from the previous year.

In Europe, the increase of car production by the moderate recovery of the market led to an increase in revenue to 159.6 billion yen (US$1.4 billion), a 3.3 percent increase from the previous year. On the other hand, due to depreciation increase, operating profit decreased to 5.8 billion yen (US$52.1 million), a 14.7 percent decrease from the previous year.

In Asia, increase of car production and sales expansion, a revenue increase to 299.6 billion yen (US$2.7 billion), a 7.7 percent increase from the previous year. As a result of the increase in production volume, an operating profit totaled 28.5 billion yen (US$254.5 million), a 16.5 percent increase from the previous year.

In other areas, mainly the South American region, including Brazil and Argentina, revenue totaled 19.1 billion yen (US$170.8 million), a 21.9 percent increase from the previous year. The operating profit totaled 3.3 billion yen (US$29.9 million).

“Considering the latest movement in the foreign exchange markets and increase of car production, we have revised up our financial result forecasts for the first-half and full-year,” said Matsui.

(Foreign exchange rates used for the first-half financial result forecast are US$= 111yen Euro=121 yen, and for the full-year are US$= 110 yen, Euro= 121 yen)

Forecast for Fiscal Year Ending March 31, 2018