DENSO Announces Second Quarter Financial Results
KARIYA (Japan) ―DENSO, a leading mobility supplier, today announced global financial results for its second quarter, ending September 30, 2023, for its 2024 fiscal year, ending March 31, 2024:
Consolidated revenue totaled 3,513.5 billion yen (US$23.5 billion), a 16.3 percent increase from the previous year.
Consolidated operating profit totaled 211.8 billion yen (US$1.4 billion), a 36.3 percent increase from the previous year.
Consolidated profit attributable to owners of the parent company totaled 168.9 billion yen
(US$1.1billion), a 59.7 percent increase from the previous year.
“Revenue in the second quarter increased compared to the previous year due to the strong vehicle sales mainly in Japan and North America, foreign exchange gains and expansion of products for electrification, safety and peace of mind areas though decrease of Japanese, European, and American vehicle sales in China. Operating profit in the second quarter increased compared to the previous year due to production volume, foreign exchange gains and improvement, though the continuing rise in the cost of materials, especially electronic components, and the accelerating investment for future as R&D.” said Yasushi Matsui, CFO, Vice President and member of the Board of Directors of DENSO CORPORATION. “In this fiscal year, we forecast 7,000.0 billion yen (US$46.8 billion) in revenue and 630.0 billion yen (US$4.2 billion) in operating profit. Revenue and operating profit will be based on strong sales actuals in the first half and forecast of foreign exchange gains and sales expansions in the third quarter. The annual dividends for the end of the fiscal year will be 52 yen, a 2 yen increase from the previous announcement. This means 208 yen as pre-stock split conversion. We will continue to improve DOE levels over the long term and in a stable manner.”
In Japan, revenue increased to 2061.2 billion yen (US$13.8 billion), up 18.5% from the previous year, and operating profit was 85.2 billion yen (US$569.5 million), down 6.4% from the previous year.
In North America, revenue increased to 856.6 billion yen (US$5.7 billion), up 19.8% from the previous year, and operating profit was 14.2 billion yen (US$94.8 million) (Operating loss of 13.0 billion yen in the same quarter of the previous year).
In Europe, revenue increased to 372.8 billion yen (US$2.5 billion), up 15.8% from the previous year, and operating profit was 13.9 billion yen (US$92.8 million), up 285.0% from the previous year.
In Asia, revenue increased to 974.0 billion yen (US$6.5 billion), up 1.4% from the previous year and operating profit was 88.2 billion yen (US$589.6 million), up 30.9% from the previous year.
In other areas, revenue increased to 60.3 billion yen (US$0.4 billion), up 12.4% from the previous year, and operating profit was 11.5 billion yen (US$76.9 million), up 0.8% from the previous year.
Forecast for Fiscal Year Ending March 31, 2024
|Full-Year Forecast||Changes from Previous Forecast|
|Revenue|| 7,000.0 billion yen
| +300.0 billion yen
|Operating profit|| 630.0 billion yen
| +30.0 billion yen
|Profit before profit taxes|| 684.0 billion yen
| +30.0 billion yen
|Profit attributable to owners of the parent company|| 470.0 billion yen
| +26.0 billion yen
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 149.58 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on September 29, 2023. Billion is used in the American sense of one thousand million.
Foreign exchange rates of the Forecast for Fiscal Year Ending March 31, 2024, as a precondition are US$= 140.5 yen, Euro= 151.7 yen, CNY=19.6 yen.
About DENSO CORPORATION
Globally headquartered in Kariya, Japan, DENSO is a $47.9 billion leading 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 around 200 facilities worldwide to provide opportunities for rewarding careers and to produce cutting-edge electrification, powertrain, thermal and mobility electronics products, among others, that change how the world moves. In developing such solutions, the company’s 165,000 global employees are paving the way to a mobility future that improves lives, eliminates traffic accidents, and preserves the environment. DENSO spent around 9.0 percent of its global consolidated sales on research and development in the fiscal year ending March 31, 2023. For more information about DENSO’s operations worldwide, visit https://www.denso.com/global.