KARIYA, Japan ― DENSO Corp. today announced its global financial results for the fiscal year ending March 31, 2014.
Consolidated net sales totaled $39.8 billion, a 14.4 percent increase from the previous year. Consolidated operating income totaled $3.7 billion, a 44 percent increase from the previous year. Consolidated net income totaled $2.8 billion, a 58.2 percent increase from the previous year.
”The sales and operating income increased due to an increase in car production mainly in developed countries, in addition to the impact of the weak yen,” said Nobuaki Katoh, president and CEO of DENSO Corp.
In Japan, the increase in car production and the impact of the weak yen led to an increase in sales to $26.4 billion, a 10.3 percent increase from the previous year. Also, despite an increase mainly in R&D expenses, increase in production volume and the currency exchange gain, in addition to the cost reduction effort, led to an operating income of $2.8 billion, a 66 percent increase from the previous year.
In North America, an increase in car production and the impact of the weak yen led to an increase in sales to $7.9 billion, a 28.5 percent increase from the previous year. As a result of the increase in production volume, the operating income totaled $142.4 million, a 9.1 percent increase from the previous year.
In Europe, the gradual recovery from the economic slump and the effect of the weak yen led to an increase in sales to $4.8 billion, a 34 percent increase from the previous year. As a result of the increase in production volume, the operating income totaled $120.1 million, a 216.1 percent increase from the previous year.
In Asia and Oceania, the increase in car production mainly in China and the effect of the weak yen resulted in a sales increase to $9.2 billion, a 18.8 percent increase from the previous year. Increase in labor costs and the expenditure on the establishment of plants and technical centers for future competitiveness led to an operating income of $692.1 million, a 3.3 percent decrease from the previous year.
In other areas, mainly the South American region, including countries such as Brazil and Argentina, sales totaled $722.4 million, a 16.3 percent increase from the previous year. The operating income totaled $0.3 million, a 99.1 percent decrease from the previous year.
“For the new fiscal year, we expect sales to increase and income to decrease from the previous year. This is due to the decrease in production volume within Japan, in addition to investment costs for initiating new products and to increase capabilities in overseas plants for future competitiveness,” said Katoh.
