DENSO Announces Third-quarter Financial Results

TOKYO, Feb. 3 -- DENSO Corporation, parent company of Southfield, Mich.-based DENSO International America, Inc., today announced global financial results for the third quarter ended Dec. 3, 20031, 2003:

* Consolidated net sales of 639.1 billion yen (US$6.0 billion) totaled 53 percent of the company's original estimate at the interim period of 1213.7 billion yen (US$11.3 billion), for the latter half year ending March 31, 2004.

* Operating income totaled 61.9 billion yen (US$578.5 million), and operating margin was 9.7 percent, 74 percent of the original latter-half year estimate of 83.4 billion yen (US$779.4 million).

* Third-quarter income before income taxes and minority interests totaled 65.6 billion yen (US$613.1 million), 94 percent of the original latter-half year estimate of 69.8 billion yen (US$652.3 million).

* Consolidated net income totaled 37.9 billion yen (US$354.2 million) and net profit margin was 5.9 percent, 108 percent of the original latter-half year estimate of 35.1 billion yen (US$328.0 million).

DENSO plans to report the extraordinary loss caused mainly by liquidation of the entrusted welfare pension benefits by the Government of Japan in the fourth quarter of this fiscal year. As a result, this quarter's income, before income taxes and minority interests and net income, totals significantly more than 50 percent of the original latter-half year estimate.

"We were satisfied with the financial results of the third quarter," said Nobuaki Katoh, chief financial officer, DENSO Corporation. "Higher domestic car production and overseas sales expansion contributed to this favorable result."

In Japan, sales totaled 482.8 billion yen (US$4.5 billion), 54 percent of the original latter-half year estimate of 889.8 billion yen (US$8.3 billion). Operating income of 53.1 billion yen (US$496.3 million) is equivalent to 80 percent of the original latter-half year estimate of 66.7 billion yen (US$623.4 million).

In North America, Central America and South America, sales totaled 129.1 billion yen (US$1.2 billion), staying 47 percent of the original latter-half year estimate of 276.6 billion yen (US$2.6 billion). Operating income of 6.8 billion yen (US$63.6 million) equaled 42 percent of the original latter-half year estimate of 16.2 billion yen (US$151.4 million).

In Europe, sales totaled 82.2 billion yen (US$768.2 million), 53 percent of the original latter-half year estimate of 154.4 billion yen (US$1.4 billion), and operating loss totaled 2 billion yen (US$18.7 million).

In Asia and Oceania, sales of 55.7 billion yen (US$520.6 million) achieved 53 percent of the original latter-half year estimate of 105.6 billion yen (US$986.9 million), and operating income totaling 4.5 billion yen (US$42.1 million), equaled 136 percent of the original latter-half year estimate of 3.3 billion yen (US$30.8 million).

"As a result of our good financial results in this third quarter, we have revised and raised our plan announced in Oct. 28, 2003," said Katoh.

  Revised Forecast for Fiscal Year Ended March 31, 2004

  Net sales may hit a record high.

                 Current FY Forecast    Changes from      Original Estimate
                                        Previous FY

  Net Sales      2,520.0 billion yen    + 8.0 percent    2,440.0 billion yen
                   (US$23.6 billion)                       (US$22.8 billion)
  Income before
   income taxes
   and minority
   interests       184.0 billion yen   - 21.2 percent      166.0 billion yen
                    (US$1.7 billion)                        (US$1.6 billion)
  Net Income       102.0 billion yen
                  (US$953.3 million)    - 8.1 percent       88.0 billion yen
                                      (+ 22.3 percent:    (US$822.4 million)
                                       Excluding the
                                       effect of
                                       extraordinary
                                       income)

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 90,000 people in 31 countries and regions, including Japan. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in Japan. In the Americas (North, Central and South America), DENSO employs 14,000 people at 32 companies.

(Notes)

U.S. dollar amounts have been translated, for convenience only, at the rate of 107 yen = US$1, the approximate exchange rate prevailing on Dec. 31, 2003. Billion is used in the American sense of one thousand million.