KARIYA, Japan – DENSO this week announced global financial results for the first half year, ended Sept. 30. Consolidated net sales totaled $16.9 billion, a 14.5 percent increase from the previous year. Consolidated operating income totaled $1.5 billion, a 22.3 percent increase from the previous year. Consolidated net income totaled $1 billion, a 25.7 percent increase from the previous year.
“Sales growth was mainly due to the increase in overseas car production for Japanese auto manufacturers and the depreciated yen,” said Koji Kobayashi, senior managing director of DENSO Corporation. “In spite of rising raw material costs and the increases in labor and depreciation costs, increased production volume and foreign exchange gain led to an increase in income.”
In Japan, sales totaled $11.3 billion, an 8.1 percent increase from the previous year. Despite a sales increase led by growing export of vehicles and sales expansion for Lexus models, the increase in depreciation costs associated with a tax law change in Japan and rising material costs led to operating income of $825.3 million, a 2.5 percent decrease from the previous year.
In North, Central and South America, increased production volume for Japanese auto manufacturers and sales expansion to General Motors and Ford led to an increase in sales to $3.7 billion, a 15.8 percent increase from the previous year. Operating income increased to $202.2 million, an increase of 71.4 percent from the previous year. Increased production volume and cost reduction efforts resulted in an increase in operating income.
In Europe, sales expansion to Ford, Fiat, OPEL and PSA led to $2.6 billion in sales, a 25.1 percent increase from the previous year. Operating income more than doubled from $44.3 million the previous year to $99.1 million, due to increased production volumes of air conditioners in the Czech Republic, Italy and Spain, and diesel common rail systems in Hungary.
In Asia and Oceania, sales totaled $2.6 billion, a 37.1 percent increase from the previous year, thanks to the recovering ASEAN automotive market and strong production from Japanese auto manufacturers in China. Operating income totaled $331.9 million, a 79.2 percent increase from the previous year. In addition to the stable expansion of China operations, sales expansion of air conditioners in Indonesia and diesel common rail systems in Thailand resulted in the significant increase in operating income.
“As a result of our good financial results in this interim period, we have revised and raised our fiscal year 2007 estimate announced on April 26,” said Kobayashi.
