DENSO Corporation's first quarter results saw double-digit increases over the same time last year, according to global financial figures the company recently released. For the first quarter ended June 30, DENSO saw consolidated net sales totaling $8 billion, a 15-percent increase over last term's first quarter. It also reports consolidated operating income totaling $757.2 million, a 13.1-percent increase, and consolidated net income totaling $546.3 million, also a 15-percent incease. "Sales growth was mainly due to the increase in overseas car production for Japanese auto manufacturers," says Koji Kobayashi, senior managing director of DENSO Corporation. "In spite of high raw material costs and an increase in depreciation costs, increased production volume and foreign exchange gain led to an increase in operating income." In Japan, sales totaled $5.3 billion, an 8.4-percent increase from the first quarter of last term. Despite a sales increase led by growing export of vehicles, rising material costs and the increase in depreciation costs associated with the tax law change in Japan, led to operating income of $428.5 million, a 9.9-percent decrease from the previous year. In North, Central and South America, sales expansion to Toyota, Honda, General Motors and Ford led to an increase in sales to $1.8 billion, a 17.1-percent increase from the first quarter of last term. Operating income increased to $114.9 million, an increase of 64.9 percent from the previous year. Increased production volume and cost- reduction efforts resulted in an increase in operating income, according to the company. In Europe, sales expansion to Ford, Fiat, OPEL and PSA raised sales to $1.3 billion, a 25.7-percent increase from the first quarter of last term. Operating income doubled from $25.7 million the previous year to $52.8 million, due to increased production volume and cost-reduction efforts in Hungary, Italy and Spain. In Asia and Oceania, the company says sales totaled $1.2 billion, a 36.1-percent increase from the first quarter of last term, thanks to the recovering Indonesian automotive market and strong production from Japanese auto manufacturers in China. Operating income increased to $150.7 million, a 69.9-percent increase from the same period last term. In addition to the stabilization of China operations, increased production for diesel common rail injection systems in Thailand resulted in an increase in operating income. "Considering the solid production for Japanese auto manufacturers and foreign exchange market, the half-year forecast has been revised," Kobayashi notes. No changes were made to the full-year forecast. DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a global supplier of advanced technology, systems and components. For more information, visit www.globaldenso.com. |
