DENSO has announced its global financial results for the first quarter ending June 30, 2019, for fiscal year ending March 31, 2020.
The company reported consolidated revenue of $12.3 billion, a 0.5 percent decrease from the previous year.
Consolidated operating profit totaled $641.5 million, a 23.9 percent decrease from the previous year.
Consolidated profit attributable to owners of the parent company totaled $530.3 million, a 26.1 percent decrease from the previous year.
“Despite market slowdown in Europe and China, revenue, not including foreign exchange fluctuations, increased due to an increase in car production by Toyota. However, foreign exchange fluctuations led to a drop in revenue. Operating profit decreased due to an increase in investment for future growth and IT investment for improving productivity and promoting work style reform, as well as currency exchange loss,” said Yasushi Matsui, senior executive officer of DENSO Corp.
In Japan, an increase in vehicle production led to an increase in revenue to $7.4 billion, a 2.3 percent growth from the previous year. Despite a rise in production volume and cost-reduction efforts, there was a drop in operating profit to $218.3 million, a 31 percent down from the previous year. This is attributed to investments for future growth.
In North America, a production volume increase and sales expansion led to an increase in revenue to $2.9 billion, a 1.4 percent increase from the previous year. Operating profit totaled $75.9 million, a 29.8 percent decrease from the previous year due to the increase in expenses for R&D and investments to expand electrification production capabilities.
In Europe, revenue totaled $1.5 billion, a 12.8 percent decrease from the previous year due to market slowdown. Despite cost-reduction efforts, a production volume decrease and currency exchange loss led to a drop in operating profit to $30.1 million, a 53.9 percent decrease from the previous year.
In Asia, market slowdown led to a drop in revenue to $3.1 billion, an 8.1 percent down from the previous year. In spite of cost-reduction efforts, operating profit totaled $232.9 million, a 25.5 percent decrease from the previous year. This is attributed to production volume decrease and currency exchange loss.
In other areas, mainly the South American region, specifically Brazil and Argentina, revenue totaled $170.8million, a 7.4 percent increase from the previous year. Operating profit totaled $38.4 million, a 59.2 percent increase from the previous year.
“For the new fiscal year, we have not revised revenue and operating profit due to uncertainty of market and currency exchange fluctuations,” said Matsui.
