Global Management

Sales and Income by Segment

  • Net Sales by Segment
  • Operating Income by Segment

Note: The segments changed from the third quarter of fiscal 2010. Other mainly includes local corporations in South America.

Performance and Outlook by Segments

Japan

日本

Results for fiscal year under review

Domestic sales increased 12.1% year on year to ¥2,463.6 billion, principally due to a recovery in production after it was reduced following the Great East Japan Earthquake and higher exports accompanying increased production in North America and Asia & Oceania. Operating income soared, increasing 103.5%, or ¥170.7 billion, due to production volume increase from a rise in sales and the effects of yen depreciation, offset by a rise in R&D expenses.

Approach for next fiscal year

In establishing a global production system, Japan will play the role of “mother factory,” developing and deploying cutting-edge products and production technologies. We plan to bolster our global competitiveness by adapting low-cost technologies aimed at emerging markets so that they can be used in domestic products and Japanese production capabilities will be further advanced. We are also moving forward with a transition to lean and competitive “Dantotsu” plants to increase the cost competitiveness of domestic production. Through such initiatives as faster and more continually operating production lines, compact facilities, and logistics rationalization within the factory, these plants target greatly improved productivity and energy efficiency. After trials at a designated model plant, initiatives were expanded to other plants leading to the realization of improvements on a number of production lines. We plan to expand these initiatives further to include plants outside Japan.

North America

北米

Results for fiscal year under review

U.S. automobile sales and production recovered strongly with the improvement in the domestic economy.

North American sales and income both increased, with sales rising 24.1%, or ¥635.4 billion, year on year, largely a result of favorable sales centered on General Motors, Ford, Chrysler (collectively the Detroit Three), and Japanese car manufacturers. Operating income went up 53.1%, or ¥13.4 billion, due to factors including a production volume increase.

Approach for next fiscal year

In fiscal 2014, as well as working to increase sales to Japanese manufacturers and the Detroit Three, we will construct a supply system with the increase in automobile production in mind. We will also further our efforts to expand sales to Japanese commercial vehicle and agricultural and construction equipment manufacturers, a business that is expected to grow globally. Regarding technological development, we are strengthening local design capabilities in order to invest in safety-related products, hybrid and electric car products, and efficient new technologies for the aftermarket business.

Europe

欧州

Results for fiscal year under review

In Europe, both sales and income declined, sales falling 3.9%, or ¥372.2 billion, as a result of the depressed market caused by the European sovereign debt crisis. Operating income decreased 38.7%, or ¥3.9 billion, due to factors including a production volume increase.

Approach for next fiscal year

Although the difficult market environment will continue in fiscal 2014, the economy is expected to show slow recovery, having already bottomed out in fiscal 2013. While continuing efforts to further expand sales to European customers, DENSO will strengthen its price competitiveness via thorough cost-reduction initiatives.

Asia & Oceania

豪亜

Results for fiscal year under review

In Asia & Oceania, while there was reduced auto production in China as consumers showed reluctance to buy Japanese cars, production increased in Southeast Asia. Consequently, sales increased 26.7%, or ¥794 billion, in line with Japanese manufacturers’ pick-up in production. Operating income increased 23.9%, or ¥73.7 billion, due to factors including capacity utilization gains.

Approach for next fiscal year

As auto manufacturers are expected to focus on investment in compact cars, DENSO will strengthen its price competitiveness through local development and production. We anticipate a rise in income as a result of increased automobile production by manufacturers. On the other hand, profits are likely to decline due to higher costs accompanying the start of production of new products and at new plants, which are advance investments intended to strengthen our future business base. However, from fiscal 2015 we plan to recover profitability.

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