DENSO Announces Third-Quarter Financial Results

KARIYA, Japan, Feb. 3, 2011 /PRNewswire/ -- DENSO Corporation today announced its third quarter global financial results for the nine months ending Dec. 31, 2010:

• Consolidated net sales totaled 2,358.0 billion yen (US$29.0 billion), a 11.3 percent increase from the previous year.
• Consolidated operating income totaled 174.4 billion yen (US$2.1 billion), a 121.4 percent increase from the previous year.
• Consolidated net income totaled 129.3 billion yen (US$1.6 billion), a 156.8 percent increase from the previous year.

"Considering the steady financial results up to our third quarter, we have made an upward revision to our full-year forecasts for the fiscal year ending March 31, 2011," said Sadahiro Usui, Executive Director of DENSO Corporation. "We will continue to accelerate development of new products that contribute to fuel efficiency and CO2 emissions reduction, as well as low cost products for emerging markets."

In Japan, the government's vehicle incentive program in the first-half, and increasing product exports led to an increase in sales totaling 1,621.0 billion yen (US$19.9 billion), a 10.8 percent increase from the previous year. The increase in production volumes and cost reduction efforts led to an operating income of 80.4 billion yen (US$986.4 million), a 484.9 percent increase from the previous year.

In North America, an increase in sales mainly due to General Motors, Chrysler, Toyota and Honda led to an increase in sales to 396.2 billion yen (US$4.9 billion), an 18.2 percent increase from the previous year. As a result of the increase in production volume, the operating income totaled 18.8 billion yen (US$231.1 million), a 233.5 percent increase from the previous year.

In Europe, despite an increase in sales mainly due to BMW and Land Rover, substantial currency exchange loss led to an decrease in sales to 291.0 billion yen (US$3.6 billion), a 2.8 percent decrease from the previous year. Operating income totaled 8.5 billion yen (US$104.2 million), a 49.4 percent increase from the previous year.

In Asia and Oceania, an increase in car production volume of Japanese car manufactures, and Hyundai Kia Automotive Group, led to an increase in sales to 481.0 billion yen (US$5.9 billion), a 28.8 percent increase from the previous year. The increase in production volumes led to an operating income of 63.1 billion yen (US$774.2 million), a 23.3 percent increase from the previous year.  

In other areas, mainly the South American region, including countries such as Brazil and Argentina, sales totaled 45.5 billion yen (US$558.2 million), a 4.2 percent increase from the previous year. The operating income totaled 5.2 billion yen (US$64.4 million), a 1.4 percent decrease from the previous year.

Forecast for Fiscal Year Ending March 31, 2011

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electric, electronics and information and safety. Its customers include all the world's major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 34 countries and regions (including Japan) and employs approximately 120,000 people. Last fiscal year, DENSO spent 9.1 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.globaldenso.com, or visit our media website at www.densomediacenter.com.

In the Americas, DENSO employs more than 16,000 people with consolidated sales totaling US$5.7 billion for the fiscal year ended March 31, 2010.

(Notes)

U.S. dollar amounts have been translated, for convenience only, at the rate of 81.49 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on Dec. 30, 2010. Billion is used in the American sense of one thousand million.

SOURCE DENSO International America, Inc.