DENSO Announces Year-end Financial Results

Global Consolidated Net Sales Rise Nearly 10 Percent

TOKYO, April 27 -- DENSO Corporation today announced global financial results for the fiscal year ended March 31, 2004:

* Consolidated net sales totaled 2,562.4 billion yen (US$24.2 billion), a 9.8 percent increase from the previous year.

* Operating income totaled 188.6 billion yen (US$1.8 billion), an 18.0 percent increase from the previous year.

* Income before income taxes and minority interests for the year totaled 185.8 billion yen (US$1.8 billion), a 20.4 percent decrease from the previous year because 67.2 billion yen (US$634.0 million) of extraordinary items, mainly of the extraordinary income recorded in the previous period. The extraordinary income was caused mainly by liquidation of the entrusted welfare pension benefits by the Government of Japan, recorded in the previous period.

* Consolidated net income totaled 110.0 billion yen (US$1,037.7 million), a 0.9 percent decrease from the previous year due to the above-mentioned extraordinary income.

"We are pleased with the financial results for this fiscal year," said Nobuaki Katoh, chief financial officer of DENSO Corporation. "The increase in car production for Japanese auto manufacturers and overseas sales expansion, especially in Europe and Asia and Oceania, contributed to the increase in sales. The increase in production volume contributed to the increase in operating income."

In Japan, sales totaled 1,885.8 billion yen (US$17.8 billion), a 9.0 percent increase from the previous year, and operating income totaled 153.5 billion yen (US$1.4 billion), a 24.5 percent increase from the previous year.

The increase in sales was led by a rise in ITS products such as car navigation systems and ETC (Electronic Toll Collection) systems, as well as a demand for replacement trucks due to new diesel engine emission regulations, Katoh said. The increase in operating income was led by the increase in production volume and cost reduction activities.

In North, Central and South America, the increase in production volume for Japanese car manufacturers resulted in a slight increase of sales, despite an appreciated yen against the U.S. dollar. Combined sales for those regions totaled 557.7 billion yen (US$5.3 billion), a 3.2 percent increase from the previous year. In spite of production volume increases and cost reduction activities, new additions to the product line-up resulted in a decrease in operating income of 24.8 billion yen (US$234.0 million), a decrease of 11.9 percent.

In Europe, sales totaled 338.3 billion yen (US$3.2billion), a 23.5 percent increase from the previous year due to a production volume increase, especially for Japanese car manufacturers and a depreciated yen against the euro. New additions to the product line-up led to a 4.3 billion yen (US$40.6 million) operating loss, Katoh said.

In Asia and Oceania, sales totaled 223.6 billion yen (US$2.1 billion), a 20.3 percent increase from the previous year, and operating income totaled 14.9 billion yen (US$140.6 million), a 20.6 percent increase from the previous year. A substantial increase in sales, especially in Thailand, China and Korea, contributed to an increase in both of sales and operating income, Katoh said.

   Forecast for Fiscal Year Ended March 31, 2005
                                        Current FY           Changes from
                                         Forecast            Previous FY
   Net Sales                         2,580.0 billion yen    + 0.7 percent
                                    (US$24.3 billion)
   Income before income taxes          202.0 billion yen    + 8.7 percent
    and minority interests           (US$1.9 billion)
   Net Income                          118.0 billion yen    + 7.2 percent
                                     (US$1.1 billion)

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 95,000 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, DENSO employs 14,000 with consolidated sales for the above fiscal year totaling US$5.3 billion. Southfield, Mich.-based DENSO International America, Inc. serves as DENSO's North American headquarters. For more information, go to www.densocorp-na.com .

(Notes) U.S. dollar amounts have been translated, for convenience only, at the rate of 106 yen = US$1, the approximate exchange rate prevailing on March 31, 2004. Billion is used in the American sense of one thousand million.

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