DENSO Corporation today announced global financial results for the fiscal year ending March 31, 2010:

• Consolidated net sales totaled 2,976.7 billion yen (US$32.0 billion), a 5.3 percent decrease from the previous year.
• Consolidated operating income totaled 136.6 billion yen (US$1.5 billion), an increase of 173.9 billion yen (US$1.9 billion) from the previous year's operating loss of 37.3 billion yen (US$401.0 million).
• Consolidated net income totaled 73.4 billion yen (US$789.2 million), an increase of 157.5 billion yen (US$1.7 billion) compared to the previous year's consolidated net loss of 84.1billion yen (US$903.8 million).

"Despite the steady market recovery in emerging countries, substantial currency exchange loss and the primary markets' decline in the first half led to a decrease in sales," said Nobuaki Katoh, president and CEO of DENSO Corporation. "However, with thorough worldwide cost reduction efforts, we were able to turn our income back into the black in the last 12 months."

In Japan, a decrease in domestic car production and a currency exchange loss led to a decrease in sales to 2,041.3 billion yen (US$21.9 billion), a 4.9 percent decrease from the previous year. However, as a result of efforts, such as fixed cost reduction, operating income totaled 40.9 billion yen (US$439.6 million), an increase of 155.6 billion yen (US$1.7billion) from the previous year.

In Europe, despite the increased sales to Fiat, sales totaled 411.1 billion yen (US$4.4 billion), an 11.1 percent decrease from the previous year, due to the decrease in car production at Ford and the Japanese auto manufacturers. Operating income totaled 10.7 billion yen (US$114.8 million), a 195.9 percent increase from the previous year. The fixed cost reduction and streamlining efforts led to an increase in operating income.

In Asia and Oceania, sales totaled 534.1 billion yen (US$5.7 billion), a 5.2 percent increase from the previous year, as a result of the car production increase in China and ASEAN countries. Operating income totaled 75.4 billion yen (US$810.1 million), a 24.6 percent increase from the previous year. The increased production volume and streamlining efforts resulted in an increase in operating income.

"Our steady efforts in streamlining business operations have enabled us to vastly improve our earnings," said Katoh. "For the new fiscal year, along with continuing these efforts, we will become more aggressive to realize future growth by directing resources toward electrification, improved fuel consumption, and CO2 reduction for cars, as well as increase products for emerging markets such as China and India."

Forecast for Fiscal Year Ending March 31, 2011