Denso has posted half-year consolidated revenue up 7.6% to US$18.6bn, with consolidated operating profit down 1.2% to US$1.2bn.
"Denso's revenue increased due to an overseas production volume increase and the growth in sales in addition to the impact of the weak yen,” said president and CEO, Koji Arima.
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“On the other hand, operating profit decreased due to the increase in research and development cost and start-up cost for new products.”
In Japan, a production volume decrease, mainly in compact cars, led to a fall in revenue to US$10.7bn, a 0.9% decline from the previous year.
The drop in production volume and the increase in R&D cost, start-up cost and other expenses led to an operating profit of US$595.4m, a 24.5% fall from the previous year.
In North America, an increase in car production, boosted by steady economic growth, led to an rise in revenue to US$4.6bn, 24.8% up from the previous year.
As a result of the increase in production volume, operating profit totalled US$208m, a 79.4% rise from the previous year.
"Considering the financial results in the first-half, as well as the market trend, we have decided to revise the original forecast for the full-year financial results," added Denso.
