Hubber
31st Oct 2007, 11:09
DENSO reports strong first-half results
31st October 2007
The Japanese Tier 1 supplier and Toyota affiliate DENSO Corporation today announced global financial results for the first half year ended September 30, 2007. Consolidated operating income totalled 169.1 billion yen (US$1.5 billion), a 22.3% increase from the previous year. Consolidated operating income totalled 169.1 billion yen (US$1.5 billion), a 22.3% increase. Consolidated net income totalled 118.3 billion yen (US$1.0 billion), up 25.7%. Growth derived mainly from increased overseas production by Japanese OEMs, and the depreciated yen.
In Japan, DENSO’s sales totalled 1,309.1 billion yen (US$11.3 billion), an 8.1% increase from the previous year, but an increase in depreciation costs associated with a tax law change in Japan and rising material costs led to operating income falling 2.5% to 95.3 billion yen (US$825.3 million).
In North, Central and South America, increased production volume for Japanese OEMs and sales expansion to GM and Ford led to an increase in sales to 429.7 billion yen (US$3.7 billion), a 15.8% y/y increase. Operating income increased to 23.3 billion yen (US$202.2 million), up 71.4%.
In Europe, sales expansion to Ford, Fiat, GM Europe and PSA led to 298.7 billion yen (US$2.6 billion) in sales, a 25.1% y/y increase. Operating income more than doubled from 5.1 billion yen (US$44.3 million) the previous year to 11.4 billion yen (US$99.1 million), due to increased production volumes of air conditioning systems in the Czech Republic, Italy and Spain, and diesel common rail systems in Hungary.
In Asia and Oceania, sales totalled 298.8 billion yen (US$2.6 billion), a 37.1% increase thanks to the recovering ASEAN automotive market and strong production from Japanese OEMs in China. Operating income totalled 38.3 billion yen (US$331.9 million), a 79.2% y/y increase.
In the light of these results, DENSO has raised its fiscal year 2007 forecast to net sales of 3,950.0 billion yen (US$34.2 billion), an increase of 9.4%.
At DENSO’s current rate of growth, notes Automotive News today, it could overtake Bosch next year to become the world’s largest automotive supplier; it is currently the second largest.
31st October 2007
The Japanese Tier 1 supplier and Toyota affiliate DENSO Corporation today announced global financial results for the first half year ended September 30, 2007. Consolidated operating income totalled 169.1 billion yen (US$1.5 billion), a 22.3% increase from the previous year. Consolidated operating income totalled 169.1 billion yen (US$1.5 billion), a 22.3% increase. Consolidated net income totalled 118.3 billion yen (US$1.0 billion), up 25.7%. Growth derived mainly from increased overseas production by Japanese OEMs, and the depreciated yen.
In Japan, DENSO’s sales totalled 1,309.1 billion yen (US$11.3 billion), an 8.1% increase from the previous year, but an increase in depreciation costs associated with a tax law change in Japan and rising material costs led to operating income falling 2.5% to 95.3 billion yen (US$825.3 million).
In North, Central and South America, increased production volume for Japanese OEMs and sales expansion to GM and Ford led to an increase in sales to 429.7 billion yen (US$3.7 billion), a 15.8% y/y increase. Operating income increased to 23.3 billion yen (US$202.2 million), up 71.4%.
In Europe, sales expansion to Ford, Fiat, GM Europe and PSA led to 298.7 billion yen (US$2.6 billion) in sales, a 25.1% y/y increase. Operating income more than doubled from 5.1 billion yen (US$44.3 million) the previous year to 11.4 billion yen (US$99.1 million), due to increased production volumes of air conditioning systems in the Czech Republic, Italy and Spain, and diesel common rail systems in Hungary.
In Asia and Oceania, sales totalled 298.8 billion yen (US$2.6 billion), a 37.1% increase thanks to the recovering ASEAN automotive market and strong production from Japanese OEMs in China. Operating income totalled 38.3 billion yen (US$331.9 million), a 79.2% y/y increase.
In the light of these results, DENSO has raised its fiscal year 2007 forecast to net sales of 3,950.0 billion yen (US$34.2 billion), an increase of 9.4%.
At DENSO’s current rate of growth, notes Automotive News today, it could overtake Bosch next year to become the world’s largest automotive supplier; it is currently the second largest.