Denso has unveiled first-half consolidated revenue down 20.8% to US$19.6bn.
Consolidated operating profit totalled US$-658.1m, while consolidated profit attributable to owners of the parent company was US$-672.2m.
“Revenues decreased due to a significant decline in vehicle sales in the first quarter as a result of COVID-19 and although there was a recovery trend from the second quarter, overall sales decreased in the first half,” said Denso EVP, Yasushi Yamanaka.
“Operating income was in the black in the second quarter because of additional measures, but operating loss was recorded in the first half due to production volume decreases.”
In Japan, despite an increase in sales due to the transfer of the Hirose Plant and an increase in sales to Toyota in the second quarter, sales revenue decreased 18.5% to US$12.5bn.
Denso recorded an operating loss of JPY93.1bn. (Operating income of JPY56.4bn in the same quarter of the previous year) due to the impact of COVID-19, which resulted in production volume decrease.
“Regarding the full-year forecast, while vehicle sales are recovering, there are concerns COVID-19 has the potential to resurge in different regions and the outlook is uncertain, so we have decided to leave the forecast unchanged,” added Yamanaka.
“In addition, the year-end dividend forecast is 70 yen.”