Denso has unveiled first quarter results today (1 August) showing consolidated net sales of JPY630.2bn (US$7.8bn), a 21.5% decrease from the previous year.
Consolidated operating loss totalled JPY4.4bn, a decrease of JPY75bn from the previous year’s operating income of JPY70.7bn. Consolidated net income was JPY2.6bn, a 94.4% decrease from the previous year.
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“Due to the Japan earthquake, production level was considerably low [lowered] in April and May,” said Denso executive director Sadahiro Usui. “However, it has rapidly recovered since June and now overall production is close to pre-quake levels.
“A significant decrease in car production and a temporary cost increase to comply with the effects of the earthquake led to a decrease in sales from the previous year and an operating loss.”
In Japan, the significant decrease in car production due to the earthquake led to a decrease in sales to JPY398.8bn, a 24.7% decrease from the previous year.
Falls in production volume resulted in an operating loss of JPY24.4bn, a decrease of JPY57.7bn from the previous year’s operating income.
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By GlobalDataIn North America, despite sales increasing to Ford, drops in Japanese vehicle manufacturers’ production led to a decrease in sales to JPY101.1bn, a 30% fall from the previous year. As a result of the decrease in production volume, the operating loss totalled JPY2.5bn, a reduction of JPY10.1bn from the previous year’s operating income.
In Europe, an increase in sales mainly to European car manufactures led to a rise in sales to JPY108.6bn, a 4% increase from the previous year. Operating income was JPY3.2bn, an 11.7% percent decrease from the previous year.
In Asia and Oceania, despite a sales increase to Hyundai Kia Automotive Group, a decrease in Japanese manufacturers’ car production resulted in sales falling to JPY147.3bn, down 10.2%.
A drop in production volume led to operating income of JPY13.3bn, a 48.2% decrease from the previous year.
Other areas, mainly South America, had sales totalling JPY15.8bn, a 2% increase from the previous year. Operating income totalled JPY1.5bn, a 17.1% decrease.
“Considering the strong recovery from the earthquake, we have decided to upwardly revise the original forecasts for the first-half financial results,” said Usui. “The dividend for the fiscal year ending 31 March, 2012, is undecided, but we will announce the forecast as soon as possible.
“Despite the harsh business environment such as [the] strong yen and rising raw materials costs, we will strive to make recovery in our financial results through reducing cost and improving productivity.”
