KARIYA (Japan) ― Global automotive supplier DENSO Corporation today announced its global financial results for fiscal year ending March 31, 2018:
“DENSO’s revenue rose due to an increase in vehicle production, as well as sales expansion. DENSO’s operating profit also saw an increase due to a rise in production volume and company cost reduction efforts,” said Koji Arima, president and CEO of DENSO Corporation.
In Japan, a rise in vehicle production and newly consolidated subsidiaries resulted in an increase in revenue to 3,083.8 billion yen (US$29.0 billion), a 14.8 percent growth from the previous year. As a result of the increase in production volume and cost reduction effors, the operating profit totaled 200.7 billion yen (US$1.9 billion), a 54.2 percent improvement from the previous year.
In North America, sales expansion led to a rise in revenue to 1,156.3 billion yen (US$10.9 billion), a 7.3 percent increase from the previous year. Operating profit totaled 42.5 billion yen (US$0.4 billion), a 29.1 percent decrease from the previous year due to an increase in depreciation.
In Europe, a rise in both vehicle production and sales expansion led to an increase in revenue to 662.3 billion yen (US$6.2 billion), a 14.7 percent increase from the previous year. Due to depreciation increases, operating profit dropped to 20.1 billion yen (US$0.2 billion), a 0.5 percent decrease from the previous year.
In Asia, an increase in both vehicle production and sales expansion resulted in an increase in revenue to 1,322.8 billion yen (US$12.5 billion), a 16.1 percent rise from the previous year. As a result of the increase in production volume, operating profit totaled 136.7 billion yen (US$1.3 billion), 21.3 percent growth from the previous year.
In other areas, mainly the South American region, including Brazil and Argentina, revenue totaled 79.0 billion yen (US$0.7 billion), a 20.0 percent increase from the previous year. Operating profit totaled 13.4 billion yen (US$0.1 billion).
“For the new fiscal year, revenue will increase due to the increase in car production, sales expansion, and the newly consolidated subsidiaries. Despite a rise in production volume and cost reduction efforts, operating profit will decrease due to an increase in investment for future growth, in addition to the impact of the yen’s appreciation and increase of material costs,” said Arima.
(Foreign exchange rates used for the full-year are US$= 105 yen, Euro= 130 yen)
|Full-Year Forecast||Changes from Previous FY|
|Revenue||5,320 billion yen|
|+211.7 billion yen|
|Operating profit||376 billion yen|
|-36.7 billion yen|
|Profit before income taxes||415 billion yen|
|-34.9 billion yen|
|Profit attributable to owners of the parent company||290 billion yen [US$2.7 billion]||-30.6 billion yen [US$-0.3 billion]|
The above forecasts are created based on the information obtained by the date of this announcement and the actual results may dier due to various causes in the future. U.S. dollar amounts have been translated, for convenience only, at the rate of 106.24 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market March 30, 2018. Billion is used in the American sense of one thousand million.
DENSO Corp., headquartered in Kariya, Aichi prefecture, Japan has more than 220 subsidiaries in 35 countries and regions (including Japan) and employs approximately 170,000 people worldwide. Consolidated global sales for the fiscal year ending March 31, 2018, totaled US$48.1 billion. Last fiscal year, DENSO spent 8.8 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.denso.com, or visit our media website at www.denso.com/global/en/news/media-center/