Exchange rate affects DENSO financial results
DENSO recorded net income of 89.3 billion yen on net sales of more than 3.1 trillion yen for its fiscal year ended March 31, 2012. That compares to income of 143 billion yen on sales of 3.1 trillion yen for its previous fiscal year.
Based on the exchange rate on March 31, 2012, DENSO posted net sales of nearly $1.1 billion on sales of $38.3 billion. The company's income-to-sales ratio was 2.8%.
Consolidated operating income totaled 160.7 billion yen, a 14.7% decrease from the previous year.
"Despite the impact of the Great East Japan Earthquake and the Thailand flooding in 2011, a production recovery effort led to an increase in sales from the previous year," says Nobuaki Katoh, CEO and president. "However, income decreased mainly due to a substantial currency exchange loss by the strong yen."
Global Mid-term Policy
The DENSO Group`s overall business plan for the next four fiscal years (fiscal years ending March 2013 to March 2016) is based on the results of the Three-Year Structural Reform Plan put into place by DENSO after the collapse of Lehman Brothers.
1. Strategies to expand business for ensuring continuous growth in future years: 1) strengthen relationships with automakers and expand business in growing emerging markets; 2) develop system products that make vehicles more attractive for customers; 3) expand aftermarket business and develop new business.
2. Evolve by continuing to develop world-first products: 1) improve capabilities of product development focusing on world-first technologies; 2) establish global procurement, production, and supply systems that make the Group “Dantotsu” (extremely) cost competitive.
3. Facilitating Group-wide collaboration across the world and speeding up corporate management: 1) strengthen the foundation to facilitate the collaboration of 120,000 employees in the DENSO Group; 2) foster a corporate climate that encourages associates to act quickly.
DENSO hopes to reach sales of 4 trillion yen in its fiscal year ending March 31, 2016.
DENSO also announced changes to its board of directors and executive directors. They will become effective after the 89th Annual General Meeting of Shareholders on June 20, 2012.
Board member Michio Adachi, an executive director, will become senior executive director. Five executives were named executive directors:
* Kenichiro Kamai (Nippon Soken),
* Bunichi Kondo (Tokyo sales division),
* Masanori Tsuruta (Electronics Engineering Division 1),
* Yasuhiro Iida (DENSO Thailand) and
* Kenichiro Ito (Corporate Planning Division).
Four executive directors also retired. They are:Yasushi Nei, Akihiro Yukawa, Hiroyuki Murayama and Hitoshi Tasaka.
For more information, visit www.globaldenso.com.