DENSO Announces First-half Financial Results

Oct 29, 2020 12:57 JST

Source: Denso

TOKYO, Oct 29, 2020 - (JCN Newswire) - DENSO, a leading mobility supplier whose 2021 fiscal begins April 1, 2020, and ends March 31, 2021, today announced its global financial results for the first half of its fiscal year, ending September 30:

- Consolidated revenue totaled 2,074.7 billion yen (US$19.6 billion), a 20.8 percent decrease from the previous year.
- Consolidated operating profit totaled -69.6 billion yen (US$-658.1million).
- Consolidated profit attributable to owners of the parent company totaled -71.1 billion yen
(US$-672.2 million).

"Revenues decreased due to a significant decline in vehicle sales in the first quarter as a result of COVID-19, and although there was a recovery trend from the second quarter, overall sales decreased in the first half. Operating income was in the black in the second quarter because of additional measures, but operating loss was recorded in the first half due to production volume decreases," said Yasushi Yamanaka, executive vice president of DENSO Corporation.

In Japan, despite an increase in sales due to the transfer of the Hirose Plant and an increase in sales to Toyota Motor Corporation in the 2nd Quarter, sales revenue decreased to 1,324.8 billion yen ((US$12.5 billion) (Down 301.3 billion yen, 18.5% from the same quarter in the previous year). DENSO recorded an operating loss of 93.1 billion yen (Operating income of 56.4 billion yen in the same quarter of the previous year) due to the impact of COVID-19, which resulted in production volume decrease.

In North America, although vehicle production has been on a recovery track since the 2nd Quarter, sales revenue decreased to 436.3 billion yen (US$4.1 billion) (Down 167.2 billion yen, 27.7% from the same quarter in the previous year). Operating loss was 8.5 billion yen (Operating income of 11.2 billion yen in the same quarter of the previous year) due to COVID-19-related production volume decreases.

In Europe, sales revenue decreased to 200.2 billion yen (US$1.9 billion) (Down 94.7 billion yen, 32.1% from the same quarter in the previous year) due to a decrease in vehicle sales caused by COVID-19. Operating loss was 4 billion yen (Operating income of 6.3 billion yen in the same quarter of the previous year) due to a production volume decrease.

In Asia, sales revenue decreased to 549.9 billion yen (US$ 5.2 billion) (Down 110.1 billion yen, 16.7% from the same quarter in the previous year) due to the slowdown of the market. Operating income decreased to 29.8 billion yen (Down 20.6 billion yen, 40.9% from the same quarter in the previous year) due to the impact of production volume decreases.

In other areas, net sales decreased to 14.4 billion yen (US$135.9 million) (Down 20.1 billion yen, 58.4% from the same quarter in the previous year) and operating income decreased to 2.7 billion yen (Down 3.6 billion yen, 56.8% from the same quarter in the previous year).

"Regarding the full-year forecast, while vehicle sales are recovering, there are concerns that COVID-19 has the potential to resurge in different regions and the outlook is uncertain, so we have decided to leave the forecast unchanged. In addition, the year-end dividend forecast is 70 yen." said Yamanaka.

(Foreign exchange rates used for the full-year are US$= 106 yen, Euro= 120yen)

(Notes)
The above forecasts are created based on the information obtained by the date of this announcement and the actual results may differ due to various causes in the future. U.S. dollar amounts have been translated, for convenience only, at the rate of 105.80 yen=USD1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market September. 30, 2020. Billion is used in the American sense of one thousand million.

About Denso

DENSO is a $48.3 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 221 facilities in 35 countries 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 9.3% of its global consolidated sales on research and development in the fiscal year ending March 31, 2019. For more information about global DENSO, visit https://www.denso.com/global.

Source: Denso
Sectors: Automotive