TOKYO - Japan - DENSO Corporation today announced global financial results for the First Quarter ended June 30, 2003:

• Consolidated net sales of 614.4 billion yen (US$5.1 billion) totalled 53% of the original estimate of 1,165 billion yen (US$ 9.7 billion), for the first half year ending Sept. 30, 2003.
• Operating income totalled 51.7 billion yen (US$431.0 million), and operating margin was 8.4%, 70% of the original first-half year estimate of 74 billion yen (US$ 616.7 million).
• First-quarter income before income taxes and minority interests totalled 57.7 billion yen (US$480.9 million), 77% of the original first-half year estimate of 75 billion yen (US$ 625 million).
• Consolidated net income totalled 29.1 billion yen (US$242.7 million) and net profit margin was 4.7%, 73% of the original first-half year estimate of 40 billion yen (US$ 333.3 million).

"The financial results for this first quarter were fairly satisfactory in comparison with our estimates, due to the higher domestic car production and favourable exchange rate" said Nobuaki Katoh, chief financial officer, DENSO Corporation.

In Japan, sales totalled 436.5 billion yen (US$3.6 billion), 52% of the original first- half year estimate of 840 billion yen (US$ 7 billion). Operating income of 36.5 billion yen (US$304.5 million) is equivalent to 69% of the original first-half year estimate of 53 billion yen (US$ 441.7 million).

In North America, Central America and South America, sales totalled 146.3 billion yen (US$1.2 billion), achieving 53% of the original first-half year estimate of 277 billion yen (US$ 2.3 billion). Operating income of 10.7 billion yen (US$89.4 million) equalled 67% of the original first-half year estimate of 16 billion yen (US$ 133.3 million).

In Europe, sales totalled 84.2 billion yen (US$702.1 million), 58% of the original first-half year estimate of 146 billion yen (US$ 1.2 billion), and operating loss totalled 0.3 billion yen (US$2.4 million).

In Asia and Oceania, sales of 53.1 billion yen (US$442.8 million) achieved 56% of the original first-half year estimate of 95 billion yen (US$ 0.8 billion), and operating income totalling 5.2 billion yen (US$43.7 million), equalled 74% of the original first-half year estimate of 7 billion yen (US$ 58.3 million).

Notes

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 90,000 people in 31 countries and regions, including Japan. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in Japan

U.S. dollar amounts have been translated, for convenience only, at the rate of 120 yen = US$1, the approximate exchange rate prevailing on June 30, 2003. Billion is used in the American sense of one thousand million.

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