Kariya (Japan) - DENSO Corporation today announced global financial results for the first quarter ending June 30, 2009:

• Consolidated net sales totaled 584.9 billion yen (US$6.1 billion), a 40.6 percent decrease from the previous year.
• Consolidated operating loss totaled 15.2 billion yen (US$158.3 million), a decrease of 89.4 billion yen (US$930.7 million) from the previous year's operating income of 74.2 billion yen (US$772.4 million).
• Consolidated net loss totaled 2.7 billion yen (US$27.9 million), a decrease of 54.3 billion yen (US$566.0 million) from the previous year's consolidated net income of 51.7 billion yen (US$538.1 million).

"The sales decrease and operating loss were due to the sharp decline in worldwide car production from the second half of last fiscal year, and currency exchange losses," said Sadahiro Usui, managing officer of DENSO Corporation.

In Japan, in addition to a decrease in domestic car production and product exports mainly to North America and Europe, currency exchange losses led to a decrease in sales to 396.1 billion yen (US$4.1 billion), a 39.1 percent decrease from the previous year. Despite cost reduction efforts, the lower production volumes and currency exchange losses led to an operating loss of 24.7 billion yen (US$257.3 million), a decrease of 56.1 billion yen (US$584.3 million) from the previous year's operating income.

In North, Central and South America, a decrease in sales mainly to Toyota, General Motors, Chrysler, and other Japanese auto manufacturers - resulting from cuts in car production - led to a decrease in sales to 107.1 billion yen (US$1.1 billion), a 43.9 percent decrease from last year. Due to the lower production volumes, there was an operating loss of 2.2 billion yen (US$22.4 million), a decrease of 13.0 billion yen (US$135.1 million) from the previous year's operating income.

In Europe, despite some countries car scrappage incentive schemes, lower car production for Japanese auto manufacturers led to a decrease in sales to 95.6 billion yen (US$996.0 million), a 41.7 percent decrease from the previous year. Despite cost reduction efforts, the decrease in production volume resulted in an operating income of 1.4 billion yen (US$14.1 million), an 80.6 percent decrease from the previous year.

In Asia and Oceania, sales totaled 94.7 billion yen (US$986.5 million), a 37.8 percent decrease from the previous year, and operating income totaled 9.9 billion yen (US$103.2 million), a 57.1 percent decrease from the previous year. In addition to a decrease in car production volumes in ASEAN countries and China, currency exchange losses resulted in a decrease in both sales and operating income.

"Considering our progress in cost reduction, along with the recovering trend of production for auto manufacturers, we have revised the half-year forecast for the fiscal year ending March 31, 2010," said Usui. "We will continue to work on creating a lean business structure to improve earnings."

No changes were made to the full-year forecast.

Forecast for First-Half Fiscal Year Ending September 30, 2009

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 120,000 people in 32 countries and regions, including Japan. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in Japan. For more information, go to www.denso.com.

(Notes)
U.S. dollar amounts have been translated, for convenience only, at the rate of 96.01 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on June 30, 2009. Billion is used in the American sense of one thousand million.