Denso Corporation on Friday said its global consolidated net income rose 19.5% to JPY73.8bn ($644.3m) in the third quarter ended 31 December 2007. Consolidated operating income was up 16.9% to JPY104.1bn ($909.6m).
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Consolidated net sales rose 10.9% to 1,029.2bn yen ($9.0bn).
“The sales growth was mainly due to the increase in domestic and overseas car production for Japanese auto manufacturers,” said senior managing director Koji Kobayashi in a statement.
“In spite of the increases in depreciation and labour costs, increased production volume and cost reduction efforts led to an increase in operating income.”
Japan sales rose 7.1% to JPY713.0bn ($6.2bn) due to an increase in vehicle exports. Despite production volume increases and cost reduction efforts, the increase in depreciation costs associated with a tax law change in Japan contributed to a 7.6% fall in operating income to JPY64.9bn ($567.1m).
In North, Central and South America, increased production volume for Japanese auto manufacturers and sales expansion to General Motors and Ford led to a 6.8% increase in sales to JPY197.9bn ($1.7bn). Operating income rose a massive 64.4% to JPY9.2bn ($80.2m) due mainly to increased volume of navigation systems and air conditioners and cost reduction efforts.
In Europe, more sales to Ford, Fiat and PSA increased revenue 18.2% to JPY156.5bn ($1.4bn). Operating income rose 76.2% to JPY5.8bn ($50.5m) as a result of increased production volume of air conditioners and diesel common rail systems.
In Asia and Oceania, sales rose 27.6% to JPY157.6bn yen ($1.4bn), thanks to increased car production by Japanese auto manufacturers in ASEAN and China.
Operating income more than doubled from JPY11.8bn ($102.9m) to JPY24.5bn yen ($213.9m), due to more sales of air conditioners and diesel common rail systems and the stable expansion of operations in China.
“Considering the recent rapid appreciation of the yen and the possibility of an economic slowdown, we have kept our fiscal year 2007 estimate announced on 31 October, 2007,” added Kobayashi.
Denso forecast net sales up 9.4% to JPY3,950bn; operating income up 11.2% to JPY337bn; income before income taxes and minority interests up 10.4% to JPY353.0bn and net income up 11.1% to JPY228bn.
