DENSO cannot completely overcome 1Q results
DENSO Corp. posted net income of 23.3 billion yen on net sales of 1.4 trillion yen for its fiscal first half ending Sept. 30, 2011.
The results were lower than they were during the same period last year. Net income was down 75.2%, while net sales were down 11.4%.
Based on the exchange rate on Sept. 30, 2011, DENSO recorded income of $304.1 million on sales of $18.4 billion for the first half:
Consolidated operating income totaled 31.9 billion yen ($416.3 million), a 74.4% decrease from the previous year.
”Despite the recovery in car production from the Great East Japan Earthquake in the second quarter, the sharp production decline in the first quarter led to a decrease in both sales and income,” says Nobuaki Katoh, CEO and president of DENSO.
In North America, despite the market recovery of the auto industry, the production decreases of the Japanese auto manufacturers led to a decrease in sales (to 217.5 billion yen) and an operating loss of 3 billion yen.
“Although substantial increase in production volume is expected in the second-half, we have made a downward revision to our year-end sales forecast considering future business conditions such as exchange loss due to the appreciating yen,” says Katoh.
Forecast for fiscal year ending March 31, 2012
Net sales: 3.16 trillion yen.
Net income: 98 billion yen.
Operating income: 135 billion yen.
For more information on DENSO, visit www.globaldenso.com.