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DENSO Announces Year-end Financial Results
KARIYA, JAPAN, Apr 30, 2020 - (JCN Newswire) - DENSO, the world's second largest mobility supplier, today announced its global financial results for its fiscal year 2019, ending March 31, 2020:
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U.S. dollar amounts have been translated, for convenience only, at the rate of 108.33 yen=USD1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market March. 31, 2020. Billion is used in the American sense of one thousand million. | | |
- Consolidated revenue totaled 5,153.5 billion yen (US$47.6 billion), a 3.9 percent decrease from the previous year.
- Consolidated operating profit totaled 61.1 billion yen (US$563.8 million), an 80.7 percent decrease from the previous year.
- Consolidated profit attributable to owners of the parent company totaled 68.1 billion yen (US$628.6 million), a 73.2 percent decrease from the previous year.
"Revenue decreased due to a decline in vehicle production and the impact of the COVID-19 outbreak. Operating profit decreased due to factors such as quality cost provisions, as well as effects from the COVID-19 pandemic," said Koji Arima, president and CEO of DENSO Corporation.
In Japan, despite a production volume increase, currency exchange loss led to a decrease in revenue to 3,263.5 billion yen (US$30.1 billion), a 0.1 percent decrease from the previous year. Operating profit decreased 214.8 billion yen (US$2.0 Billion) to an operating loss of 88.8 billion yen (US$819.4 million), a 170.4 percent reduction from the previous year, due to quality improvement efforts and COVID-19 effects.
In North America, market slowdown led to a decrease in revenue to 1,176.3 billion yen (US$10.9 billion), a 3.0 percent decrease from the previous year. Operating profit totaled 23.5 billion yen (US$217.1 million), a 20.6 percent decrease from the previous year due to the production volume decrease, increases in expenses for R&D and investments to expand electrification production capabilities.
In Europe, revenue totaled 583.3 billion yen (US$5.4 billion), a 10.6 percent decrease from the previous year. Production volume decreases and labor cost increases led to a drop in operating profit to 14.4 billion yen (US$132.5 million), a 37.1 percent decrease from the previous year.
In Asia, market slowdown led to a drop in revenue to 1,278.5 billion yen (US$11.8 billion), a 9.7 percent fall from the previous year. Operating profit totaled 103.3 billion yen (US$953.6 million), a 19.6 percent decrease from the previous year.
In other areas, mainly the South American region, specifically Brazil and Argentina, revenue totaled 60.7 billion yen (US$560.7 million), a 16.5 percent decrease from the previous year. Operating profit totaled 9.8 billion yen (US$90.3 million), a 5.2 percent decrease from the previous year.
"The full-year forecast for the next fiscal year is undecided due to the COVID-19 pandemic, which makes it difficult to calculate current figures in Japan and overseas," said Arima.
About DENSO Corporation
DENSO is a $47.6 billion global mobility supplier that develops advanced technology and components for nearly every vehicle make and model on the road today. With manufacturing at its core, DENSO invests in its worldwide 200 facilities to produce thermal, powertrain, mobility, electrification, & electronic systems, to create jobs that directly change how the world moves. The company's 170,000+ employees are paving the way to a mobility future that improves lives, eliminates traffic accidents, and preserves the environment. Globally headquartered in Kariya, Japan, DENSO spent 9.9 percent of its global consolidated sales on research and development in the fiscal year ending March 31, 2020. For more information about global DENSO, visit https://www.denso.com/global
Source: Denso
Sectors: Automotive
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