DENSO Announces Third-Quarter Financial Results
KARIYA (Japan) ―DENSO, a leading mobility supplier, today announced its global financial results for the third quarter, beginning Oct. 1 and ending Dec. 31, 2020, for its 2021 fiscal year, which ends March 31, 2021:
Consolidated revenue totaled 3,508.6 billion yen (US$33.9 billion), a 9.9 percent decrease from the previous year.
Consolidated operating profit totaled 66.6 billion yen (US$643.8 million).
Consolidated profit attributable to owners of the parent company totaled 43.1 billion yen (US$416.3 million).
"Revenue is recovering steadily due to increased vehicle sales in the second and third quarters, but sales for fiscal year 2021 are still down compared to last fiscal year due to the significant decline in the first quarter. Revenue for the third quarter (3 months) increased to 1,433.9 billion yen (US$13.9 billion). Operating income was also in the black for all of the third quarter due to an increase in revenue and the effects of measures. Operating income for the third quarter (3 months) increased to 136.3 billion yen (US$1.3 billion). Our full-year forecast reflects the strong performance in the third quarter, with revenues projected at 4,740.0 billion yen (US$45.8 billion) and operating income at 150.0 billion yen (US$1.4 billion), which are revised upward.” said Yasushi Matsui, senior executive officer of DENSO Corporation.
In Japan, despite an increase in sales of electrification products for primarily Toyota Motor Corporation and an increase in revenue from the Hirose Plant, revenue decreased to 2,250.0 billion yen (US$21.7 billion) (Down 7.5% from the same quarter in the previous year). Operating loss was 12.0 billion yen (US$116.1 million) (Operating income was 40.0 billion yen in the same quarter of the previous year)
In North America, revenue decreased to 730.4 billion yen (US$7.1 billion) (Down 17.5% from the same quarter in the previous year) and operating income decreased to 1.5 billion yen (US$14.0 million) (Down 91.6% from the same quarter in the previous year).
In Europe, revenue decreased to 359.4 billion yen (US$3.5 billion) (Down 18.2% from the same quarter in the previous year), and operating income decreased to 2.7 billion yen (US$26.3 million) (Down 74.1% from the same quarter in the previous year).
However, in these two regions, operating loss in the first half of the year turned into operating income due to the recovery of vehicle sales and corporate reforms.
In Asia, revenue in China led sales throughout the third quarter, but revenue decreased to 932.9 billion yen (US$9.0 billion) (Down 7.2% from the same quarter in the previous year) and operating income decreased to 71.8 billion yen (US$693.6 million) (Down 13.8% from the same quarter in the previous year).
In other areas, revenue decreased to 26.7 billion yen (US$257.8 million) (Down 45.7% from the same quarter in the previous year) and operating income decreased to 4.8 billion yen (US$45.9 million) (Down 44.4% from the same quarter in the previous year).
Although fiscal year 2021 revenue and profits are down, third quarter revenue and profits increased in all regions over the previous year due to changes in the sales environment and variable cost reduction.
“Regarding the full-year forecast, reflecting the strong third quarter, we revised revenue projections upward to 4,740.0 billion yen (US$45.8 billion) and operating income to 150 billion yen (US$1.4 billion). As for the fourth quarter, because of uncertainty caused by COVID-19 and semiconductor shortages, we didn’t revised revenues and operating income from previously announced figures,” said Matsui.
(Foreign exchange rates used for the full-year are US$= 106 yen, Euro= 121yen)
Forecast for Fiscal Year Ending March 31, 2021
|Full-Year Forecast (Original)||Full-Year Forecast (Revised)||Changes|
|Revenue|| 4,540.0 billion yen
| 4,740.0 billion yen
| +200.0 billion yen
|Operating profit|| 100.0 billion yen
| 150.0 billion yen
| +50.0 billion yen
|Profit before income taxes|| 131.0 billion yen
| 184.0 billion yen
| +53.0 billion yen
|Profit attributable to owners of the parent|| 75.0 billion yen
| 112.0 billion yen
| +37.0 billion yen
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 103.48 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market December.30, 2020. Billion is used in the American sense of one thousand million.
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/en