DENSO's net income increases 58%
DENSO Corp. posted net income of 287.4 billion yen on net sales of 4.1 trillion yen for its fiscal year ended March 31, 2014. That compares to income of 181.7 billion yen on sales of nearly 3.6 trillion yen for the previous year.
Based on the exchange rate on March 31, 2014, DENSO recorded net income of $2.8 billion on sales of $39.8 billion for fiscal 2014. Its income-to-sales ratio was 7%.
The company's operating income was up 44% year over year, from 262.3 billion yen to 377.7 billion yen ($3.6 billion).
"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,” says CEO and President Nobuaki Katoh.
In North America, an increase in car production and the impact of the weak yen led to an increase in sales to 816.6 billion yen ($7.9 billion), a 28.5% increase from the previous year. As a result of the increase in production volume, the operating income totaled 14.7 billion yen ($143 million), a 9.1% increase.
“For the new fiscal year, we expect sales to increase and income to decrease from the previous year," says Katoh. "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."
DENSO's board of directors approved a fiscal year-end dividend of 58 yen per share payable June 19, 2014.