Global consolidated net sales rise 8.1 percent

TOKYO- DENSO Corporation today announced global financial results for the third quarter ended December 31, 2004:

• Consolidated net sales totalled 690.9 billion yen (US$6.7 billion), an 8.1 percent increase from the same time period the previous year.
• Operating income totalled 63.3 billion yen (US$614.6 million), a 2.2 percent increase from the previous year.
• Income before income taxes and minority interests for the year totalled 65.8 billion yen (US$638.8 million), a 0.3 percent increase from the previous year.
• Consolidated net income totalled 39.8 billion yen (US$386.4 million), a 5.0 percent increase from the previous year.

"The increase in domestic and overseas car production for Japanese auto manufacturers contributed to the increase in sales," said Nobuaki Katoh, managing officer, DENSO Corporation.

In Japan, sales totalled 517.2 billion yen (US$5.0 billion), a 7.1 percent increase from the previous year, which was led by domestic car production, and a rise in the popularity of car navigation systems. Operating income totalled 56.9 billion yen (US$552.4 million), a 7.2 percent increase from the previous year due to production volume increase and cost reduction.

Strong car production for Japanese auto manufacturers in North America contributed to the increase in sales for the Americas. The total of 136.5 billion yen (US$1.33 billion) is a 5.7 percent increase from the previous year. Operating income totalled 4.4 billion yen (US$42.7 million), a decrease of 35.7 percent, due to new additions to the product line-up, and start-up costs in Arkansas.

In Europe, the sales expansion of car navigation systems, alternators and starters led to increased sales of 93.2 billion yen (US$904.9 million), a 13.3 percent increase from the previous year. However, start-up costs in Hungary contributed to a 3.5 billion yen (US$34.0 million) operating loss.