DENSO Corp. has announced its global financial results for the first quarter ending June 30, 2017, for fiscal year ending March 31, 2018:

• Consolidated revenue totaled 1,164.9 billion yen (approximately $10.4 billion USD), a 6.6 percent increase from the previous year
• Consolidated operating profit totaled 93.2 billion yen (approximately $831.8 million USD), a 38.6 percent increase from the previous year
• Consolidated profit attributable to owners of the parent company totaled 76.7 billion yen (approximately $684.8 million USD), a 66.3 percent increase from the previous year.

“DENSO’s revenue increased by the increase of car production and sales expansion as well as operating profit due to the production volume increase and cost reduction efforts,” said Yasushi Matsui, executive director of DENSO Corp.

In Japan, the increase in car production led to an increase in revenue to 675.7 billion yen (approximately $6.0 billion USD), a 9.6 percent increase from the previous year. As a result of the increase in production volume and cost-reduction efforts, the operating profit totaled 37.4 billion yen (approximately $333.5 million USD), a 163.8 percent increase from the previous year.

In North America, despite an unpredictable economy, the increase in car production led to an increase in revenue to 281 billion yen (approximately $2.5 billion USD), a 5.6 percent increase from the previous year. As a result, the operating profit totaled 17 billion yen (approximately $151.5 million USD), a 2.3 percent increase from the previous year.

In Europe, the increase in car production due to a moderate recovery of the market led to an increase in revenue to 159.6 billion yen (approximately $1.4 billion USD), a 3.3 percent increase from the previous year. On the other hand, due to depreciation increase, operating profit decreased to 5.8 billion yen (approximately $52.1 million USD), a 14.7 percent decrease from the previous year.

In Asia, an increase in car production and sales expansion led to a revenue increase to 299.6 billion yen (approximately $2.7 billion USD), a 7.7 percent increase from the previous year. As a result of the increase in production volume, operating profit totaled 28.5 billion yen (approximately $254.5 million USD), a 16.5 percent increase from the previous year.

In other areas, mainly the South American region, including Brazil and Argentina, revenue totaled 19.1 billion yen (approximately $170.8 million USD), a 21.9 percent increase from the previous year. Operating profit totaled 3.3 billion yen (approximately $29.9 million USD).

“Considering the latest movement in the foreign exchange markets and increase of car production, we have revised up our financial result forecasts for the first-half and full-year,” said Matsui.

DENSO says its revised forecast for the fiscal year ending March 31, 2018, is 2,330 billion yen (approximately $20.8 billion USD) for the first half of the year, and 4,740 billion yen (approximately $42.3 billion USD) for the full year. The change from the previous full year forecast is +212.9 billion yen, or up 4.7 percent.