DENSO Corp. has announced its global financial results for fiscal year ending March 31, 2018, including a consolidated revenue totaling 5,108.3 billion yen (approximately $48.1 billion USD), a 12.8 percent increase from the previous year, and a consolidated operating profit totaling 412.7 billion yen (approximately $3.9 billion USD), a 24.8 percent increase from the previous year. In addition, the company reported a consolidated profit attributable to owners of the parent company totaling 320.6 billion yen (approximately $3 billion USD), a 24.4 percent increase from the previous year.
“DENSO’s revenue rose due to an increase in vehicle production, as well as sales expansion. DENSO’s operating profit also saw an increase due to a rise in production volume and company cost-reduction efforts,” said Koji Arima, president and CEO of DENSO Corp.
In Japan, a rise in vehicle production and newly consolidated subsidiaries resulted in an increase in revenue to 3,083.8 billion yen (approximately $29 billion USD), a 14.8 percent growth from the previous year. As a result of the increase in production volume and cost-reduction efforts, the operating profit totaled 200.7 billion yen (approximately $1.9 billion USD), a 54.2 percent improvement from the previous year.
In North America, sales expansion led to a rise in revenue to 1,156.3 billion yen (approximately $10.9 billion USD), a 7.3 percent increase from the previous year. Operating profit totaled 42.5 billion yen (approximately $0.4 billion USD), a 29.1 percent decrease from the previous year due to an increase in depreciation.
In Asia, an increase in both vehicle production and sales expansion resulted in an increase in revenue to 1,322.8 billion yen (approximately $12.5 billion USD), a 16.1 percent rise from the previous year. As a result of the uptick in production volume, operating profit totaled 136.7 billion yen (approximately $1.3 billion USD), a 21.3 percent increase from the previous year.
In other areas, mainly the South American region, including Brazil and Argentina, revenue totaled 79 billion yen (approximately $0.7 billion USD), a 20.0 percent increase from the previous year. Operating profit totaled 13.4 billion yen (approximately $0.1 billion USD).
“For the new fiscal year, revenue will increase due to the increase in car production, sales expansion and the newly consolidated subsidiaries. Despite a rise in production volume and cost-reduction efforts, operating profit will decrease due to an increase in investment for future growth, in addition to the impact of the yen’s appreciation and increase of material costs,” said Arima.
