Denso Corporation first fiscal half consolidated net sales totalled JPY1,409.1bn (US$18.4bn), an 11.4% decrease year on year, consolidated operating income totalled JPY 31.9bn (US$415.6m), a 74.4% fall, and consolidated net income fell 75.2% to JPY 23.3bn (US$303.8m).
In Japan, in spite of the post-earthquake production recovery, which was earlier than expected, low production level in the first quarter led to a 10.8% decrease in sales to JPY 963.5bn (US$12.6bn). Decreases in production volume resulted in an operating income down 97.1% to JPY 1.7bn (US$22.2m).
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In North America, despite market recovery, production decreases at Japanese auto manufacturers led to a 20.7% decrease in sales to JPY 217.5bn. Operating loss was JPY 3.0bn (US$39.6m), a fall of JPY 17.1bn (US$223.7m).
In Europe, an increase in sales, mainly to European automakers, was 2.6% to JPY198.7bn (US$2.6bn). Adverse product mix saw operating income fall 38.7% to JPY 3.3bn (US$43.1m).
In Asia and Oceania, a fall in Japanese car production resulted in sales falling 6.6% to JPY 299.7bn (US$3.9bn) and operating income off 41.1% to JPY 26.3bn (US$342.9m).
In other regions, including Brazil and Argentina, sales dipped 1.9% to JPY30.4bn (US$397.1m) and operating income fell 50.3% to JPY2bn (US$26m).
The dividend forecast for the fiscal year to 31 March, 2012, is ‘undecided’ due to the unclear affects of the earthquake, Denso said in a statement.
