KARIYA, Japan – DENSO Corp. has announced its third quarter global financial results for the nine months ending Dec. 31, 2014.
Consolidated net sales totaled $26.2 billion, a 4.8 percent increase from the previous year. Consolidated operating income totaled $2.1 billion, an 11.9 percent decrease from the previous year. Consolidated net income totaled $1.6 billion, a 13.4 percent decrease from the previous year.
“DENSO’s sales increased due to an overseas production volume increase,” said Kenichiro Ito, executive director of DENSO Corp. “However, despite cost-reduction efforts, an increase in production volume as well as the depreciation of the yen, research and development expenditures and investment costs for strengthening future growth led to a decrease in operating income.”
In Japan, the market shift toward compact cars and the decrease of export sales led to a decrease in sales to $16.4 billion, a 2.4 percent decrease from the previous year. The decrease in production volume and the increase in labor costs and other expenses led to an operating income of $1.4 billion, a 25.2 percent decrease from the previous year.
In North America, an increase in car production, boosted by steady economic growth, led to an increase in sales to $5.8 billion, a 16 percent increase from the previous year. As a result of the increase in production volume and the cost-reduction effort, the operating income totaled $218.5 million, a 125.6 percent increase from the previous year.
In Europe, car production increased due to the recovery of the economy, which led to an increase in sales to $3.3 billion, a 13.2 percent increase from the previous year. Due to the increase in production volume and the cost-reduction effort, the operating income totaled $92.8 million, a 73.2 percent increase from the previous year.
In Asia and Oceania, the increase of car production, mainly in China, resulted in a sales increase of $6.4 billion, a 9.1 percent increase from the previous year. The increase in labor costs and the expenditure on production and research and development capability for strengthening future growth led to an operating income of $448.4 million, a 7.8 percent decrease from the previous year.
In other areas, mainly the South American region, including Brazil and Argentina, sales totaled $471.9 million, a 1.3 percent increase from the previous year. The operating income totaled $7.1 million, a 112.7 percent increase from the previous year.
“Considering business conditions, such as the decrease in car production mainly in Japan and Asia and Oceania, and the depreciation of the yen, we have decided to upwardly revise the original forecasts for the full-year financial results,” said Ito.
