DENSO Corporation has announced its global financial results for the first quarter ending June 30, 2016 for fiscal year ending March 31, 2017:
- Consolidated revenue totaled 1,092.8 billion yen (US$10.6 billion), a 1.2% decrease from the previous year.
- Consolidated operating profit totaled 67.2 billion yen (US$652.9 million), a 22.5% decrease from the previous year.
- Consolidated profit attributable to owners of the parent company totaled 46.1 billion yen (US$448.1 million), a 37.6% decrease from the previous year.
"Despite the production volume increase and the growth in sales, DENSO’s revenue and operating profit decreased due to the appreciation of the yen,” says Yasushi Matsui, Executive Director of DENSO Corporation.
In Japan, impact of the exchange rate of export sales led to a decrease in revenue to 616.6 billion yen (US$6.0 billion), a 1.2% decrease from the previous year. The increase in R&D cost for future growth in addition to the impact of the exchange rate of export sales led to an operating profit of 14.2 billion yen (US$137.6 million), a 67.3% decrease from the previous year.
In North America, despite an increase in car production and sales expansion, boosted by steady economic growth, impact of the exchange rate led to an decrease in revenue to 266.2 billion yen (US$2.6 billion), a 6.2% decrease from the previous year. As a result of the increase in production volume, the operating profit totaled 16.6 billion yen (US$161.1 million), a 12.5% increase from the previous year.
In Europe, car production increase and sales expansion due to the moderate recovery of the market led to an increase in revenue to 154.5 billion yen (US$1.5 billion), a 1.3% increase from the previous year. The production volume increase and the growth in sales led to the increase in the operating profit to 6.8 billion yen (US$66.5 million), a 61.3% increase from the previous year.
In Asia, despite the increase of car production and sales expansion, impact of exchange rate resulted in a revenue decrease of 278.1 billion yen (US$2.7 billion), a 2.5% decrease from the previous year. As a result of the increase in production volume, an operating profit totaled 24.5 billion yen (US$237.8 million), a 15.1% increase from the previous year.
In other areas, mainly the South American region, including Brazil and Argentina, revenue totaled 15.7 billion yen (US$152.5 million), a 1.8% decrease from the previous year. The operating profit totaled 648 million yen (US$6.3 million).
“Considering the appreciation of the yen, we have decided to revise the original forecasts for the first-half and full-year financial results,” says Matsui.
