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DENSO’s sales and profits hit records

Among DENSO Corporation’s global financial results figures for the fiscal year ended 31 March, consolidated net sales totalled ¥3,609.7 billion ($30.6 billion), a 13.2% increase over 205/06.

Consolidated operating income totalled 303.1 billion yen ($2.6 billion), a 13.7% increase from the previous year. Consolidated net income totalled ¥205.2 billion ($1.7 billion), a 20.9% increase from the previous year. In Japan, sales totalled ¥2,541.3 billion ($21.5 billion), an 11.0% increase from the previous year. In spite of the sales increase led by robust domestic car production supported by growing export, rising material costs led to operating income of ¥215.3 billion ($1.8 billion), a 3.7% increase from the previous year.

In North, Central and South America, sales expansion to Toyota, Honda and GM led to an increase in sales to ¥769.1 billion ($6.5 billion), an 11.4% year on year increase. Operating income increased to ¥29.2 billion ($247.3 million), an increase of 33.4% from the previous year. Increased production volume and cost reduction efforts lessened the impact of an increase in raw material costs. In Europe, sales expansion to Toyota, Ford, Fiat and Opel for cooling modules, diesel common rail injection systems and air conditioning systems raised sales to ¥519.3 billion ($4.4 billion), a 22.8% increase from the previous year.

Operating income improved ‘drastically’ from ¥1.6 billion ($13.6 million) the previous year to ¥12.2 billion ($103.3 million), due to increased production volume and cost reduction efforts in Hungary and the Czech Republic. In Asia and Oceania, DENSO’s sales totaled ¥480.2 billion ($4.1 billion), a 21.5% increase from the previous year, and operating income totalled ¥45.9 billion ($388.8 million), a 25.1% increase. In spite of a fall in car production in ASEAN countries, strong car production in China and sales expansion in Thailand resulted in an increase in both sales and operating income. Denso forecasts that its net sales in the current year ending 31 March 2008 will rise 5.3%, income before taxes will increase by 0.3%, and net profit by 0.9%. (autoindustry.co.uk)