KARIYA, Japan ― DENSO Corp. today announced global financial results for the first-half ending Sept. 30.

Consolidated net sales totaled $14.4 billion, a 31.2 percent decrease from the previous year. Consolidated operating income totaled $108.2 million, a 91.5 percent decrease from the previous year. Consolidated net income totaled $56 million, a 91.4 percent decrease from the previous year.

“The worldwide decline in car production has led to the decrease in sales and income, but our efforts in reducing fixed costs has helped our income to return to the black,” said Nobuaki Katoh, president and CEO of DENSO Corp.
 
In Japan, in addition to a decrease in domestic car production and product exports mainly to North America and Europe, currency exchange losses led to a decrease in sales to $9.9 billion, a 30.3 percent decrease from the previous year. Despite cost reduction efforts, the lower production volumes and currency exchange losses led to an operating loss of $224.4 million, a decrease of $719.6 million from the previous year’s operating income.

In North, Central and South America, a decrease in sales mainly to Toyota, General Motors, Chrysler and other Japanese auto manufacturers – none of which resulted from cuts in car production – led to a decrease in sales to $2.6 billion, a 33.9 percent decrease from last year. Despite the lower production volumes, a reduction in fixed cost led to a slight operating income. The operating income was $10 million, a decrease of $155.4 million from the previous year’s operating income.

In Europe, despite some countries’ car scrappage incentive schemes, lower car production for Japanese auto manufacturers led to a decrease in sales to $2.2 billion, a 33.9 percent decrease from last year. Reductions in fixed costs led to operating income of $27.7 million, a decrease of $73 million from the previous year’s operating income.

In Asia and Oceania, a decrease in car production volumes in ASEAN countries resulted in a decrease in sales to $2.5 billion, a 25.9 percent decrease from the previous year. The lower production volumes led to an operating income of $306.9 million, a 36.2 percent decrease from the previous year.  

“With steady results from the reduction of fixed costs, which is one of our primary activities to improve earnings, we have made an upward revision to our full-year forecasts for the fiscal year ending March 31, 2010, with incomes returning to the black,” said Katoh. “On the other hand, the future business environment from the next fiscal year on is unclear as incentive programs come to an end at each country and with expected progress of higher yen, and we will continue to work to improve earnings.”