KARIYA, Japan – DENSO Corp. today announced its global financial results for the fiscal year ending March 31, 2015.
Consolidated net sales totaled $35.9 billion, a 5.2 percent increase from the previous year. Consolidated operating income totaled $3 billion, a 6 percent decrease from the previous year. Consolidated net income totaled $2.4 billion, a 2 percent increase from the previous year.
“DENSO’s sales increased due to an overseas production volume increase,” said Nobuaki Katoh, president and CEO of DENSO Corp. “However, despite cost reduction efforts, an increase in production volume, R&D expenditures and investment costs to strengthen future growth, there was a decrease in operating income.”
In Japan, the market shift toward compact cars and the decrease of export sales led to a decrease in sales to $22.2 billion, a 2 percent decrease from the previous year. DENSO said the decrease in production volume and the increase in labor costs and other expenses led to an operating income of $1.9 billion, a 20.5 percent decrease from the previous year.
In North America, an increase in car production, boosted by the steady economic growth, led to an increase in sales to $8 billion, an 18.4 percent increase from the previous year. As a result of the increase in production volume, the operating income totaled $321.9 million, a 163.9 percent increase from the previous year.
In Europe, DENSO noted that car production increased due to the recovery of the economic slump, which led to an increase in sales to $4.6 billion, a 11.2 percent increase from the previous year. Due to the increase in production volume, the operating income totaled $140.5 million, a 36.6 percent increase from the previous year.
In Asia and Oceania, the increase of car production, mainly in China, resulted in a sales increase of $8.7 billion, a 11.3 percent increase from the previous year. The increase in labor costs and the expenditure on production and research and development capability to strengthen future growth led to an operating income of $621.8 million, a 4.9 percent increase from the previous year.
In other areas, mainly the South American region including Brazil and Argentina, sales totaled $614.2 million, a 0.7 percent decrease from the previous year. The operating income totaled $3.4 million.
“For the new fiscal year, we expect sales and income to increase from the previous year. This is due to the increase in production volume overseas,” said Katoh.
