Denso has unveiled nine-month consolidated operating profit of US$2.1bn, up 1.8%, although consolidated revenue fell 1.8% to US28.4bn.
“Despite production volume increase and sales expansion, Denso’s revenue decreased due to appreciation of the yen,” said Denso executive director, Yasushi Matsui.
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“Despite the appreciation of the yen, operating profit increased due to production volume, cost reduction efforts and improved other income /expenses.”
In Japan, despite the impact of the exchange rate, production volume increase led to an rise in revenue to JPY1,982.2bn (US$17.0bn), a 0.8% improvement from the previous year. The impact of the exchange rate of export sales led to an operating profit of JPY106.9bn (US$917.3m), a 15.5% decrease from the previous year.
In North America, despite an increase in car production and sales expansion, boosted by steady economic growth, impact of exchange rate led to a decrease in revenue to JPY781.6bn (US$6.7bn), a 5.6% decrease from the previous year. As a result of the increase in production volume, operating profit totalled JPY43.4bn (US$373.0m), a 35.1% increase from the previous year.
In Europe, despite car production increase and sales expansion due to the moderate recovery of the market, exchange rate impact led to a decrease in revenue to JPY416.9bn (US$3.6bn), a 5.4% decrease from the previous year. As a result of the increase in production volume, operating profit totalled JPY14.3bn (US$122.8 m), a 33.5% increase from the previous year.
In Asia, despite the increase of car production and sales expansion, exchange rate impact resulted in a revenue decrease of JPY839.8bn (US$7.2bn), a 4.9% decrease from the previous year. As a result of the increase in production volume, an operating profit totalled JPY80.5bn (US$691.1m), a 9.6% increase from the previous year.
In other areas, mainly the South American region, including Brazil and Argentina, revenue totalled JPY46.9bn (US$402.5m), a 2.1% increase from the previous year. Operating profit totalled JPY4.0bn (US$34.4m).
“Considering the financial results of the third quarter, as well as the change in foreign exchange difference occurred in the third quarter, we have decided to revise the original forecast for the full-year financial results,” added Matsui.
