DENSO Announces Third Quarter Financial Results
KARIYA (Japan) ―DENSO, a leading mobility supplier, today announced global financial results for its third quarter, ending December 31, 2022, for its 2023 fiscal year, ending March 31, 2023:
- Consolidated revenue totaled 4,635.7 billion yen (US$34.6 billion), a 15.6 percent increase from the previous year.
- Consolidated operating profit totaled 267.9 billion yen (US$2.0 billion), a 4.6 percent increase from the previous year.
- Consolidated profit attributable to owners of the parent company totaled 197.8 billion yen (US$1.5 billion), a 2.3 percent increase from the previous year.
“Revenue in the third quarter increased compared to the previous year due to sales recovery, sales expansion and foreign exchange gains. Operating profit increased compared to the previous year due to sales recovery, exchange gains and profit improvements.” said Yasushi Matsui, CFO, senior executive officer and member of the Board of Directors of DENSO Corporation. “We have revised our revenue and operating profit forecasts for the year based on changing foreign exchange preconditions and current vehicle production losses, adjusting our revenue projection to 6,200.0 billion yen (US$46.3 billion) and our operating profit projection to 420.0 billion yen (US$3.1 billion). Challenging external factors, such as increased costs related to inflation, logistics, energy, materials and parts, have led us to pursue profit improvements, and we are working with customers to reflect this impact in sales prices globally.”
In Japan, revenue increased to 2,691.7 billion yen (US$20.1 billion), up 3.9% from the previous year, and operating profit was 146.7 billion yen (US$1.1 billion), a 1.8% rise from the previous year.
In North America, revenue increased to 1,082.2 billion yen (US$8.1 billion), up 28.4% from the previous year, and operating loss was 15.0 billion yen (US$111.7 million). While revenue increased in the region, DENSO's North American operations faced difficult economic conditions, such as increased logistics and energy costs, which contributed to the operating loss.
In Europe, revenue increased to 490.7 billion yen (US$3.7 billion), up 20.5% from the previous year, and operating profit was 9.1 billion yen (US$68.1 million), up 173.0% from the previous year.
In Asia, revenue increased to 1,469.5 billion yen (US$11.0 billion), up 24.5% from the previous year and operating profit increased to 113.5 billion yen (US$847.6 million), a 8.1% increase from the previous year.
In other areas, revenue increased to 76.8 billion yen (US$0.6 billion), up 42.7% from the previous year, and operating profit increased to 15.4 billion yen (US$115.2 million), up 32.3% from the previous year.
Forecast for Fiscal Year Ending March 31, 2023
|Full-Year Forecast||Changes from Previous FY|
|Revenue||6,200.0 billion yen [US$46.3 billion]||+684.5 billion yen (+12.4 percent)|
|Operating profit||420.0 billion yen [US$3.1 billion]||+78.8 billion yen (+23.1 percent)|
|Profit before profit taxes||455.0 billion yen [US$3.4 billion]||+70.2 billion yen (+18.2 percent)|
|Profit attributable to owners of the parent company||322.0 billion yen [US$2.4 billion]||+58.1 billion yen (+22.0 percent)|
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 133.94 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on December. 30, 2022. Billion is used in the American sense of one thousand million.
Foreign exchange rates of the Forecast for Fiscal Year Ending March 31, 2023, as a precondition are US$= 133.6 yen, Euro= 139.2 yen, CNY=19.7 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 200 facilities to produce thermal, powertrain, mobility, electrification, & electronic systems, to create jobs that directly change how the world moves. The company’s 168,000+ 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