DNZOF - DENSO Announces Year-end Financial Results
TOKYO, Apr 26, 2019 - (JCN Newswire) - DENSO, the world's second largest mobility supplier, today announced its global financial results for the fiscal year ending March 31, 2019:
- Consolidated revenue totaled 5,362.8 billion yen (US$48.3 billion), a 5.0 percent increase from the previous year.
- Consolidated operating profit totaled 316.2 billion yen (US$2.8 billion), a 23.4 percent decrease from the previous year.
- Consolidated profit attributable to owners of the parent company totaled 254.5 billion yen (US$2.3 billion), a 20.6 percent decrease from the previous year.
"DENSO's revenue rose in all regions due to an increase in global vehicle production, despite a market slowdown in Europe and China. In addition, DENSO's newly consolidated subsidiary, DENSO TEN, contributed to the additional growth in revenue. Operating profit decreased due to the company's increase in investments to help secure its future growth toward becoming a leading advanced mobility supplier. Additionally, transient profit in the last fiscal year and quality cost that were posted in the fourth quarter also attributed to a decrease in profitability," said Koji Arima, president and CEO of DENSO Corporation.
In Japan, an increase in vehicles equipped with safety-related products, as well as the impact from the newly consolidated subsidiary resulted in an increase in revenue to 3,266.0 billion yen (US$29.4 billion), a 5.9 percent growth from the previous year. Despite a rise in production volume and cost-reduction efforts, there was a drop in operating profit to 126.0 billion yen (US$1,135.5 million), a 37.2 percent down from the previous year. This is attributed to investments for future growth, transient profit in the last fiscal year and quality costs.
In North America, a production volume increase and sales expansion led to an increase in revenue to 1,212.4 billion yen (US$10.9 billion), a 4.9 percent increase from the previous year. Operating profit totaled 29.6 billion yen (US$266.8 million), a 30.3 percent decrease from the previous year due to the increase in expenses for R&D and the investments for expanding production capabilities.
In Europe, revenue totaled 652.5 billion yen (US$5.9 billion), an 1.5 percent decrease from the previous year. As a result of the increase in cost-reduction efforts, operating profit totaled 22.8 billion yen (US$205.7 million), a 13.8 percent increase from the previous year.
In Asia, a rise in vehicle production led to an increase in revenue to 1,416.4 billion yen (US$12.8billion), a 7.1 percent rise from the previous year. In spite of the increase in production volume and cost-reduction efforts, due to impairment of a subsidiary in Korea, operating profit totaled 128.4 billion yen (US$1,157.2 million), a 6.1 percent decrease from the previous year.
In other areas, mainly the South American region, specifically Brazil and Argentina, revenue totaled 72.7 billion yen (US$655.4 million), a 7.9 percent decrease from the previous year. Operating profit totaled 10.3 billion yen (US$92.9 million), a 23.1 percent decrease from the previous year.
"For the new fiscal year, revenue and operating profit will increase due to sales expansion of electrification and safety related products," said Arima.
(Foreign exchange rates used for the full-year are US$= 110 yen, Euro= 125 yen)
About Denso
DENSO Corp., headquartered in Kariya, Aichi prefecture, Japan has approximately 220 subsidiaries in 35 countries and regions (including Japan) and employs approximately 170,000 people worldwide. Consolidated global sales for the fiscal year ending March 31, 2018, totaled US$48.1 billion. Last fiscal year, DENSO spent 8.8% of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges.
For more information, please go to www.denso.com.
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Source: Denso
Contact:
DENSO CORPORATION Phone: 81-566-25-5594 Fax: 81-566-25-4509
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