DENSO Announces First Quarter Financial Results

Jul. 29, 2022

KARIYA (Japan) ―DENSO, a leading mobility supplier, today announced its global financial results for its first quarter, ending June 30, 2022, for its 2023 fiscal year, ending March 31, 2023:

  • Consolidated revenue totaled 1,415.0 billion yen (US$10.4 billion), a 4.3 percent increase from the previous year.

  • Consolidated operating profit totaled 63.6 billion yen (US$0.5 billion), a 40.6 percent decrease from the previous year.

  • Consolidated profit attributable to owners of the parent company totaled 51.9 billion yen (US$0.4 billion), a 41.9 percent decrease from the previous year.

 

“Revenue in the first quarter increased compared to the previous year due to sales expansion and foreign exchange gains, though sales were negatively impacted by semiconductor shortages and lockdowns in China. Operating profit decreased compared to the previous year due to challenging business conditions such as vehicle production declines,” said Yasushi Matsui, CFO, senior executive officer and member of the Board of Directors of DENSO Corporation. “We have revised our full-year forecast based on a continuation of vehicle production losses and gains made through changing foreign exchange preconditions, adjusting our revenue projection to 6,220.0 billion yen (US$45.5 billion) and operating profit projection to 480.0 billion yen (US$3.5 billion). Moreover, to achieve shareholder return and improve capital efficiency, DENSO decided repurchase of treasury stock up to 100.0 billion yen (US$0.7 billion) or 16.0 million shares, whichever is lesser.”

In Japan, revenue increased to 825.3 billion yen (US$6.0 billion), decreasing 5.5% from the previous year, and operating profit was 31.8 billion yen (US$232.4 million), a 45.4% decrease from the previous year.

In North America, revenue increased to 337.2 billion yen (US$2.5 billion), up 13.0% from the previous year, and operating loss was 6.6 billion yen (US$48.6 million) (Operating profit of 7.3 billion yen in the same quarter of the previous year).

In Europe, revenue increased to 166.1 billion yen (US$1.2 billion), up 8.6% from the previous year, and operating profit was 3.6 billion yen (US$26.1 million), up 8.5% from the previous year. The European region is recovering revenue relative to significant vehicle production losses in previous year.

In Asia, revenue increased to 441.9 billion yen (US$3.2 billion), up 21.2% from the previous year due to strong volume of sales and production in countries other than China. Operating profit increased to 28.7 billion yen (US$210.1 million), a 14.9% decrease from the previous year.

In other areas, revenue increased to 25.7 billion yen (US$0.2 billion), up 51.6% from the previous year, and operating profit increased to 6.9 billion yen (US$43.6 million), up 85.6% from the previous year.

Forecast for Fiscal Year Ending March 31, 2023

  Full-Year Forecast   Changes from Previous FY
Revenue   6,220.0 billion yen
[US$45.5 billion]
 +704.5 billion yen
(+12.8 percent)
Operating profit  480.0 billion yen
[US$3.5 billion]
 +138.8 billion yen
(+40.7 percent)
 Profit before profit taxes  523.0 billion yen
[US$3.8 billion]
 +138.2 billion yen
(+35.9 percent)
 Profit attributable to owners of the parent company  378.0 billion yen
[US$2.8 billion]
 +114.1 billion yen
(+43.2 percent)

(Notes)
The above forecasts are created based on 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 136.68 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on June. 30, 2022. Billion is used in the American sense of one thousand million.
Foreign exchange rates of the Forecast for Fiscal Year Ending March 31, 2023, as a precondition are US$= 129.9 yen, Euro= 135.8 yen.

About DENSO Corporation

DENSO is a $45.1 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 198 facilities to produce electrification system, powertrain system, thermal system, mobility electronics, & advanced devices, to create jobs that directly change how the world moves. The company’s 167,000+ 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 9.0 percent of its global consolidated sales on research and development in the fiscal year ending March 31, 2022. For more information about global DENSO, visit https://www.denso.com/global/en/.