DENSO posts record income for fiscal 2006

April 28, 2006

DENSO Corp. reported consolidated net income of 169.6 billion yen ($1.4 billion) on consolidated net sales of 3.2 trillion yen ($27.3 billion) for the fiscal year ended March 31, 2006.

Compared to fiscal 2005, income and sales were up 27.9% and 13.9%, respectively.

Consolidated operating income totaled 266.6 billion yen ($2.3 billion), a 24.6% increase from the previous year.

"This year, we have hit record highs for consolidated net sales, consolidated operating income and consolidated net income," says Managing Officer Koji Kobayashi. "These favorable results are due to a continued increase in domestic and overseas car production for Japanese auto manufacturers."

Here are the Japanese company's financial results by region.

Japan. Sales totaled almost 2.3 trillion yen ($19.6 billion), an 11.1 percent increase from the previous year. Operating income totaled 207.7 billion yen ($1.8 billion), a 15.4 percent increase from the previous year. The sales increase was led by strong domestic car production and the increased sales of car navigation systems.

North, Central and South America. Strong production by Japanese auto manufacturers in North America contributed to the increase in sales, which totaled 690.4 billion yen ($5.9 billion), a 19% increase from the previous year. In spite of increased sales, operating income totaled 21.9 billion yen ($187.2 million), a decrease of 7.5% from the previous year, due to extra costs related to production increases, new additions to the product line-up, and an increase in fixed costs.

Europe. Increased sales of car navigation systems, car air conditioners and diesel common rail injection systems led to a rise in overall sales to 423 billion yen ($3.6 billion), a 13.1% increase from the previous year. With the contribution of increased production volume in Hungary and the Czech Republic, operating income improved from a loss in the previous year to a gain of 1.6 billion yen ($13.7 million).

Asia and Oceania. Sales totaled 395.1 billion yen ($3.4 billion), a 35.8% increase from the previous year; operating income totaled 36.7 billion yen ($313.7 million), an 82.9% increase.

Strong production for the Toyota Innovative International Multi-purpose Vehicle and other Japanese auto manufacturers in Asia and Oceania led to the increase in both sales and operating income.

DENSO forcasts net income of 73.5 billion yen ($628.2 million) and net sales of 1.6 trillion yen ($14 billion) for the first half of fiscal 2007. For the full year, the company projects income of 173 billion yen ($1.5 billion) on sales of almost 3.4 trillion yen ($28.9 billion).

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