Denso has announced that consolidated net income for the fiscal Q1 period ended 30 June totalled 36.9 billion yen (US$340 million), a 26.9 percent increase from the first quarter of last year.
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Consolidated net sales totalled 680.2 billion yen (US$6.3 billion) in Q1, a 10.7 percent increase from the first quarter of last term. Operating income totalled 59.9 billion yen (US$554.6 million), a 15.9 percent increase from the first quarter of last term.
“We are pleased with the financial results for this first quarter,” said Koji Kobayashi, managing officer of Denso Corporation. “The increase in domestic and overseas car production for Japanese auto manufacturers contributed to the increase in sales, and the increase in production volume in Japan contributed to the increase in operating income.”
In Japan, sales totalled 491.1 billion yen (US$4.5 billion), a 12.5 percent increase from the first quarter of last term, and operating income totalled 48.6 billion yen (US$450 million), a 33.0 percent increase from the first quarter of last term. Robust domestic car production and a rise in the popularity of car navigation systems contributed to the increase in sales. The increase in operating income was led by the increase in production volume.
In North, Central and South America, combined sales for those regions totalled 149.8 billion yen (US$1.4 billion), a 2.4 percent increase from the first quarter of last term. An appreciated yen against the US dollar resulted in this slight increase. Without the effect of the exchange rate, combined sales increased by 10.0%. In spite of production volume increases, operating income decreased to 9.0 billion yen (US$83.3 million), a decrease of 15.9 percent, due to the appreciated yen against the U.S. dollar and new additions to the product line-up.
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By GlobalDataIn Europe, sales totalled 96.9 billion yen (US$897.2 million), a 15.0 percent increase from the previous period due to the sales expansion of diesel common rail systems, and car air conditioners. Start-up costs in the Czech Republic led to a 0.7 billion yen (US$6.5 million) operating loss in this region.
In Asia and Oceania, sales totalled 61.4 billion yen (US$568.5 million), a 15.5 percent increase from the first quarter of last term, and operating income totalled 4.1 billion yen (US$38.0 million), a 22.1 percent decrease from the first quarter of last term. An increase in sales in ASEAN countries, China, India, and Taiwan contributed to the higher number. Start-up costs in Thailand and other subsidiaries resulted in the decrease in operating income.
