After a wave of generally positive fiscal year 2007/8 results from Japanese automakers this week, it is little surprise that key components supplier Denso Corporation on Friday also turned in a decent set of numbers and a profit downturn forecast.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Consolidated net sales rose 11.5% to JPY4,025.1bn (US$40.2bn), consolidated operating income was up 15% to JPY348.7bn (US$3.5bn) and consolidated net income climbed 19.1% to JPY244.4bn (US$2.4bn).
“This year we have hit record highs for consolidated net sales, consolidated operating income and consolidated net income,” said senior managing director Koji Kobayashi. “These favourable results are due to an increase in the export of vehicles and overseas car production for Japanese auto manufacturers.”
Increased export of vehicles to emerging countries contributed to a 7.3% increase in Japan sales to JPY2,725.9bn (US$27.2bn).
In North, Central and South America, increased production volume for Japanese auto manufacturers and sales expansion to Toyota, General Motors, and Ford led to an 8.2% increase in sales to JPY832.3bn (US$8.3bn).
In Europe, sales expansion to Ford, PSA and Fiat for diesel common rail systems and air conditioners raised sales 19.4% to JPY620.3bn yen.
In Asia and Oceania, sales rose 28.3% to JPY616.2bn (US$6.1bn) because of increased car production for Japanese auto manufacturers in ASEAN countries and China.
“The business environment around us is very severe, although we achieved healthy financial results for the fiscal year,” added Kobayashi. “Considering the recent appreciation of the yen, the estimated decrease in car production in North America, and rising material costs, we forecast a slight increase in consolidated net sales and a decrease in operating income for the [current] fiscal year.”
Kobayashi continued, “We are looking at a variety of measures we can implement to keep that decrease as low as possible in the next fiscal year.”
The company expects net sales up 0.1% to JPY1,950.0bn, operating income off 17.1% to JPY289.0bn and net income off 18.2% to JPY200.0bn.
