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DENSO Announces Third-quater Financial Results
KARIYA, JAPAN, Jan 31, 2020 - (JCN Newswire) - DENSO, the world's second-largest mobility supplier, has announced its third-quarter (October-December 2019) financial results for its fiscal year 2019, ending March 31, 2020:
- Consolidated revenue totaled 3,895.0 billion yen (US$35.5 billion), a 2.1 percent decrease from the previous year.
- Consolidated operating profit totaled 162.7 billion yen (US$1.5 billion), a 33.2 percent decrease from the previous year.
- Consolidated profit attributable to owners of the parent company totaled 136.1 billion yen (US$1.2 billion), a 29.1 percent decrease from the previous year.
"Excluding foreign exchange fluctuations, revenue increased due to sales expansion, despite overall automotive market slowdown. However, foreign exchange fluctuations led to a decrease in revenue. Operating profit decreased due to foreign currency loss and provision for quality costs, despite variable costs reduction, which was outweighed by fixed costs increase," said Yasushi Matsui, Chief Financial Officer and Senior Executive Officer of DENSO Corporation.
In Japan, an increase in sales volume to Toyota led to an increase in revenue to 2,432.6 billion yen (US$22.2 billion), a 0.9 percent growth from the previous year. Operating profit decreased to 40.0 billion yen (US$364.9 million), 59.1 percent down from the previous year due to a foreign currency loss and provision for quality costs.
In North America, despite a production volume increase and sales expansion, currency exchange loss led to a decrease in revenue to 885.3 billion yen (US$8.1 billion), a 2.1 percent decrease from the previous year. Operating profit totaled 17.3 billion yen (US$157.9 million), a 22.1 percent decrease from the previous year due to the increase in expenses for R&D and investments to expand electrification production capabilities.
In Europe, revenue totaled 439.4 billion yen (US$4.0 billion), a 10.1 percent decrease from the previous year. Production volume decrease and labor costs increase led a drop in operating profit to 10.5 billion yen (US$96.0 million), a 26.4 percent decrease from the previous year.
In Asia, market slowdown led to a drop in revenue to 1,005.0 billion yen (US$9.2 billion), a 7.3 percent down from the previous year. Operating profit totaled 83.3 billion yen (US$759.8 million), an 18.5 percent decrease from the previous year. This is attributed to production volume decrease and labor costs increase.
In other areas, mainly the South American region, specifically Brazil and Argentina, revenue totaled 49.1 billion yen (US$448.3 million), a 7.1 percent decrease from the previous year. Operating profit totaled 8.6 billion yen (US$78.1 million), a 7.1 percent decrease from the previous year.
"Considering the 3Q results and environmental factors such as market slowdown, we have revised down our financial result forecast for the full-year," said Matsui.
(Foreign exchange rates used for the full-year are US$=108 yen, Euro=121 yen)
Source: Denso
Sectors: Automotive
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