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DENSO announces year end financial results

Auto News - Published on Tue, 30 Apr 2019

Image Source: wikipedia.org
DENSO announced its global financial results for the fiscal year ending March 31, 2019. Mr Koji Arima, president and CEO of DENSO Corporation, said that “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.”

Highlights

Consolidated revenue totalled JPY 5,362.8 billion (USD 48.3 billion), a 5.0% increase from the previous year.

Consolidated operating profit totaled JPY 316.2 billion (USD 2.8 billion), a 23.4% decrease from the previous year.

Consolidated profit attributable to owners of the parent company totaled JPY 254.5 billion (USD 2.3 billion), a 20.6% decrease from the previous year.

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 JPY 3,266.0 billion (USD 29.4 billion), a 5.9% growth from the previous year. Despite a rise in production volume and cost-reduction efforts, there was a drop in operating profit to JPY 126.0 billion (USD 1,135.5 million), a 37.2% 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 JPY 1,212.4 billion (USD 10.9 billion), a 4.9% increase from the previous year. Operating profit totalled JPY 29.6 billion (USD 266.8 million), a 30.3% 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 JPY 652.5 billion (USD 5.9 billion), a 1.5% decrease from the previous year. As a result of the increase in cost-reduction efforts, operating profit totalled JPY 22.8 billion (USD 205.7 million), a 13.8% increase from the previous year.

In Asia, a rise in vehicle production led to an increase in revenue to JPY 1,416.4 billion (USD 12.8billion), a 7.1% 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 totalled JPY 128.4 billion (USD 1,157.2 million), a 6.1% decrease from the previous year.

In other areas, mainly the South American region, specifically Brazil and Argentina, revenue totaled JPY 72.7 billion (USD 655.4 million), a 7.9% decrease from the previous year. Operating profit totaled JPY 10.3 billion (USD 92.9 million), a 23.1% decrease from the previous year.

Source :

Posted By : Rabi Wangkhem on Tue, 30 Apr 2019
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