DENSO announces first-quarter financial results
DENSO Corp. announced global financial results for the first quarter ending June 30, 2012: Consolidated net sales totaled 882.4 billion yen ($11.1 billion), a 40% increase from the previous year.
Consolidated operating income totaled 78.2 billion yen ($985.6 million), an increase of 82.5 billion yen ($1.0 billion) from the previous year’s operating loss of 4.4 billion yen (US$55.2 million).
Consolidated net income totaled 49.1 billion yen ($619.1 million), a 1,801.7% increase from the previous year.
"Compared to last year, DENSO’s consolidated sales and income increased sharply, as our 2011 first quarter results were impacted by the Great East Japan Earthquake,” said Kenichiro Ito, executive director of DENSO Corp
In Japan, the increase in car production due to the recovery from the earthquake and government subsidies for eco-friendly car purchases led to an increase in sales to 620.9 billion yen ($7.8 billion), a 55.7% increase from the previous year. The increase in production volume led to an operating income of 55.1 billion yen ($694.7 million), an increase of 79.5 billion yen ($1.0 billion) from the previous year’s operating loss.
In North America, increase of sales for Japanese auto manufacturers and GM, Ford and Chrysler led to an increase in sales to 159.6 billion yen ($2.0 billion), a 57.8% increase from the previous year. As a result of the increase in production volume, the operating income totaled 5.2 billion yen (US$65.9 million), an increase of 7.8 billion yen (US$97.8 million) from the previous year’s operating loss.
“Considering the first-quarter financial results, we have decided to upwardly revise the original forecasts for the first-half and full-year financial results,” said Ito. “As this being the first year for the DENSO Group’s Global Mid-term Policy, we will progressively make efforts to expand business.”