Denso Corporation has posted net income up 25.7% year on year to 118.3bn yen ($US1bn) for the first half year ended 30 September, 2007.

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Consolidated net sales rose 14.5% to 1,947.8bn yen while consolidated operating income was up 22.3% to 169.1bn yen.


“Sales growth was mainly due to the increase in overseas car production for Japanese auto manufacturers and the depreciated yen,” said senior managing director Koji Kobayashi.


“In spite of rising raw material costs and the increases in labour and depreciation costs, increased production volume and foreign exchange gain led to an increase in income.”


In Japan, sales rose 8.1% to 1,309.1bn yen but operating income fell 2.5% to 95.3bn yen.

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In North, Central and South America, increased production volume for Japanese auto manufacturers and sales expansion to General Motors and Ford led to a 15.8% increase in sales to 429.7bn yen. Operating income rose 71.4% to 23.3bn yen.


In Europe, sales expansion to Ford, Fiat, Opel and PSA led to a 25.1% increase in sales to 298.7bn. Operating income more than doubled from 5.1bn yen (US$44.3m) the previous year to 11.4bn yen (US$99.1m), due to increased production volumes of air conditioners in the Czech Republic, Italy and Spain, and diesel common rail systems in Hungary.


In Asia and Oceania, sales rose 37.1% to 298.8bn yen thanks to the recovering ASEAN automotive market and strong production from Japanese auto manufacturers in China. Operating income was up 79.2% to 38.3bn yen.


“As a result of our good financial results in this interim period, we have revised and raised our fiscal year 2007 estimate,” added Kobayashi.