DENSO Announces First-half 2006 Financial Results
Tokyo, Japan, Oct. 31, 2006 - (JCN Newswire) - DENSO Corporation today announced global financial results for the first half year ended September 30, 2006:
- Consolidated net sales totaled 1,701.7 billion yen (US$14.4 billion), a 12.9 percent increase from the previous year.
- Operating income totaled 138.3 billion yen (US$1.2 billion), a 15.5 percent increase from the previous year.
- Income before income taxes and minority interests for the period totaled 147.4 billion yen (US$1.3 billion), a 23.6 percent increase from the previous year.
- Consolidated net income totaled 94.1 billion yen (US$ 798.1 million), a 40.0 percent increase from the previous year.
"The increase in domestic and overseas car production for Japanese auto manufacturers contributed to the sales growth," said Koji Kobayashi, managing officer of DENSO Corporation. "In spite of the increasing costs in raw materials, such as copper and aluminum, the operating income increased due to increased production volume, cost reduction efforts and the depreciated yen."
In Japan, sales totaled 1,210.8 billion yen (US$10.3 billion), a 12.0 percent increase from the previous year, and operating income totaled 97.8 billion yen (US$829.5 million), a 6.1 percent increase from the previous year. Robust domestic car production supported by growing export contributed to the increase in sales. The combination of increased production volume, cost reduction efforts and foreign exchange gain absorbed the increase in raw material costs and resulted in an increase in operating income.
In North, Central and South America, combined sales totaled 371.0 billion yen (US$3.1 billion), a 13.4 percent increase from the previous year. Despite the decrease in car production for Japanese auto manufacturers in North America, sales expansion to GM and Toyota contributed to the increase of sales. Operating income increased to 13.6 billion yen (US$ 115.4million), an increase of 15.1 percent, due to increased production volume and cost reduction efforts.
In Europe, Ford sales expansion and increased compact car production, such as Fiat, raised sales to 238.8 billion yen (US$2.0 billion), a 21.6 percent increase from the previous year. Operating income improved from a loss of 0.8 billion yen (US$ 6.8million) in the previous year to a gain of 5.1 billion yen (US$ 43.3million), due to an increase in production volume in the Czech Republic, Hungary and Italy. In Asia and Oceania, sales totaled 218.0billion yen (US$1.8 billion), an 18.7 percent increase from the previous year, and operating income totaled 21.4 billion yen (US$181.5 million), a 29.9 percent increase from the previous year. Increased car production in China, Korea and Thailand resulted in an increase in sales, and the production volume increase and cost reduction efforts contributed to the increase in operating income.
"As a result of our good financial results in this interim period, we have revised and raised our fiscal year 2006 estimate announced on April 27, 2006," said Kobayashi.
Forecast for Fiscal Year Ending March 31, 2007
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Revised FY Forecast Changes from Previous FY
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Net sales 3,500.0 billion yen + 9.8 percent
(US$ 29.7 billion)
Operating income 288.0 billion yen + 8.0 percent
(US$ 2.4 billion)
Income before income taxes 301.8 billion yen + 11.0 percent
and minority interests (US$ 2.6 billion)
Net income 193.0 billion yen + 13.8 percent
(US$ 1.6 billion)
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DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is
a leading global supplier of advanced technology, systems and
components. Worldwide, the company employs 106,000 people in 32
countries and regions, including Japan. DENSO common stock is traded on
the Tokyo, Osaka and Nagoya stock exchanges in Japan.
Notes: U.S. dollar amounts have been translated, for convenience only,
at the rate of 117.90 yen = US$1, the approximate exchange rate
prevailing on September 29, 2006. Billion is used in the American sense
of one thousand million.
For full results and supporting materials, please visit the DENSO Global
IR website at http://www.globaldenso.com/en/investors/index.html .
About DENSO Corporation
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is
a leading global supplier of advanced technology, systems and
components. Worldwide, the company employs approximately 106,000 people
in 32 countries and regions, including Japan. Consolidated global sales
for the fiscal year ended March 31, 2006 totaled US$27.3 billion. DENSO
common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in
Japan. For more information, go to www.globaldenso.com or visit our
media website at www.densomediacenter.com.
For further information, please visit the DENSO Corporation home page
at: www.globaldenso.com