DENSO Announces Year-end Financial Results

KARIYA, Japan, April 28, 2009: DENSO Corporation today announced global financial results for the fiscal year ending March 31, 2009:

  --  Consolidated net sales totaled 3,142.7 billion yen (US$32.0 billion),
      a 21.9 percent decrease from the previous year.
  --  Consolidated operating loss totaled 37.3 billion yen (US$379.8
      million), a decrease of 386.0 billion yen (US$3.9 billion) from the
      previous year's operating income of 348.7 billion yen (US$3.5
      billion).

  --  Consolidated net loss totaled 84.1 billion yen (US$856.0 million), a
      decrease of 328.5 billion yen (US$3.3 billion) from the previous
      year's consolidated net income of 244.4 billion yen (US$2.5 billion).

"The sales decrease and operating loss were due to the sharp decline in worldwide car production in the second half of the fiscal year and substantial currency exchange loss," said Nobuaki Katoh, president and CEO of DENSO Corporation.

In Japan, sales totaled 2,145.6 billion yen (US$21.8 billion), a 21.3 percent decrease from the previous year, and operating loss totaled 114.7 billion yen (US$1.2 billion), a decrease of 312.2 billion yen (US$3.2 billion) from the previous year's operating income. In addition to a decrease in domestic car production and product exports mainly to North America and Europe, substantial currency exchange loss resulted in a decrease in sales and an operating loss.

In North, Central and South America, a decrease in sales mainly to Toyota and the three major American automakers, resulting from the cuts in car production, led to a decrease in sales to 559.8 billion yen (US$5.7 billion), a 32.7 percent decrease from the previous year. Despite cost-reduction efforts, the lower production volumes led to operating income of 5.1 billion yen (US$51.7 million), an 87.8 percent decrease from the previous year.

In Europe, sales totaled 462.5 billion yen (US$4.7 billion), a 25.4 percent decrease from the previous year, mainly due to lower car production for Japanese auto manufacturers. Despite cost-reduction efforts, the decrease in production volume resulted in operating income of 3.6 billion yen (US$36.8 million), an 86.4 percent decrease from the previous year.

In Asia and Oceania, sales totaled 507.7 billion yen (US$5.2 billion), a 17.6 percent decrease from the previous year, and operating income totaled 60.5 billion yen (US$615.6 million), a 24.8 percent decrease from the previous year. In spite of an increase in car production volumes for Japanese auto manufacturers in China, the slowdown in car production in ASEAN countries and substantial currency exchange loss resulted in decreases in both sales and operating income.

"We are working to create a slim and lean business structure to improve earnings," said Katoh. "We are also looking to the future, focusing on technological innovations and low-cost technologies."