DENSO posts record high year-end global financial results

The DENSO Corporation's global financial results for the fiscal year ended March 31, 2008, hit record highs, due in large part to an increase in the export of vehicles and overseas car production for Japanese auto manufacturers. According to the company, consolidated net sales totaled $40.2 billion, an 11.5 percent increase from the previous year, consolidated operating income totaled $3.5 billion, a 15 percent increase from the previous year and consolidated net income totaled $2.4 billion, a 19.1 percent increase from the previous year.

"This year we have hit record highs for consolidated net sales, consolidated operating income and consolidated net income," says Koji Kobayashi, senior managing director of DENSO Corporation.

In Japan, sales totaled $27.2 billion, a 7.3 percent increase from the previous year. Increased export of vehicles to emerging countries contributed to the increase in sales. Despite production volume increases, the increase in depreciation costs associated with a tax law change in Japan led to operating income of $2.0 billion, an 8.3 percent decrease from the previous year.

In North, Central and South America, increased production volume for Japanese auto manufacturers and sales expansion to Toyota, General Motors, and Ford led to an increase in sales to $8.3 billion, an 8.2 percent increase from the previous year. Operating income increased to $414.5 million, an increase of 42.3 percent from the previous year. Increased production volume and cost reduction efforts resulted in the increase in operating income.

In Europe, sales expansion to Ford, PSA and Fiat for diesel common rail systems and air conditioners raised sales to $6.2 billion, a 19.4 percent increase from the previous year. Operating income more than doubled from $121.4 million the previous year to $265.0 million, as a result of increased production volume and cost reduction efforts.

In Asia and Oceania, sales totaled $6.1 billion, a 28.3 percent increase from the previous year, because of increased car production for Japanese auto manufacturers in ASEAN countries and China. Operating income increased to $802.8 million, a 75.1 percent increase from the previous year, as a result of the sales expansion of air conditioners and diesel common rail systems in Thailand and the stable expansion of China operations.

"The business environment around us is very severe, although we achieved healthy financial results for the fiscal year ended March 31, 2008," adds Kobayashi. "Considering the recent appreciation of the yen, the estimated decrease in car production in North America, and rising material costs, we forecast a slight increase in consolidated net sales and a decrease in operating income for the fiscal year ending March 31, 2009."

Kobayashi continues, "We are looking at a variety of measures we can implement to keep that decrease as low as possible in the next fiscal year."

For more information about the DENSO Corporation, visit the company's Web site.