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DENSO announced global financial results for its first quarter, ending June 30, 2024, for its 2025 fiscal year, ending March 31, 2025:
- Consolidated revenue totaled 1,753.8 billion yen (US$10.9 billion), a 2.4 percent increase from the previous year.
- Consolidated operating profit totaled 120.6 billion yen (US$0.7billion), a 27.7 percent increase from the previous year.
- Consolidated profit attributable to owners of the parent company totaled 94.5billion yen (US$0.6billion), a 10.5 percent increase from the previous year.
“Revenue in the first quarter increased compared to the previous year, due in part to slowing depreciation of the yen, though suspensions of operations by Japanese customers and lower vehicle production volumes due to poor vehicle sales in Asia did affect overall performance. Operating profit in the first quarter increased compared to the previous year due to foreign exchange gains and improvement efforts though lower production volumes.” said Yasushi Matsui, CFO, Vice President and member of the Board of Directors of DENSO CORPORATION.
“In this fiscal year, we forecast 7,330.0 billion yen (US$45.5 billion) in revenue and 692.0 billion yen (US$4.3 billion) in operating profit. In the first quarter, due to the idling of Japanese customers and lower vehicle production volumes in Asia, both sales revenue and operating profit decreased compared to the announced forecast at the beginning of the year. And from the second quarter onward, the impact of suspended operations by customers in Japan is expected to be reduced, but poor vehicle sales, especially in Asia, are expected to continue. On the other hand, the yen is also expected to continue to depreciate. As we navigate these uncertainties, we commit to execute our plan from the second quarter onward announced at the beginning of the year. Based on the above, our forecast of revenue and operating profit reflects only the downside of the first quarter and revise full-year financial forecast downward.”
- In Japan, revenue increased to 984.6illion yen (US$6.1 billion), up 0.4% from the previous year, and operating profit was 45.1 billion yen (US$280.0 million), up 81.6% from the previous year.
- In North America, revenue increased to 500.1 billion yen (US$3.1 billion), up 17.7% from the previous year, and operating profit was 23.3 billion yen (US$144.6 million) up 270.2% from the previous year.
- In Europe, revenue increased to 199.8 billion yen (US$1.2 billion), up 0.7% from the previous year, and operating profit was 5.0 billion yen (US$31.0 million), down 33.0% from the previous year.
- In Asia, revenue increased to 461.4 billion yen (US$2.9 billion), down 0.6% from the previous year and operating profit was 35.8 billion yen (US$222.0 million), down 11.7% from the previous year.
- In other areas, revenue increased to 29.0 billion yen (US$0.2 billion), up 1.8% from the previous year, and operating profit was 5.9 billion yen (US$36.9 million), up 19.5% from the previous year.
Original – DENSO
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DENSO announced global financial results for its third quarter, ending December 31, 2023, for its 2024 fiscal year, ending March 31, 2024:
- Consolidated revenue totaled 5,354.9 billion yen (US$37.8 billion), a 15.5 percent increase from the previous year.
- Consolidated operating profit totaled 238.6 billion yen (US$1.7billion), a 11.0 percent decrease from the previous year.
- Consolidated profit attributable to owners of the parent company totaled 175.6 billion yen(US$1.2billion), a 11.2 percent decrease from the previous year
“Revenue in the third quarter increased compared to the previous year due to the strong vehicle sales mainly in Japan and North America, foreign exchange gains and expansion of products for electrification, safety and peace of mind areas. Operating profit in the third quarter decreased compared to the previous year due to the continuing rise in the cost of materials, especially electronic components, and the adding provision for quality, though production volume, foreign exchange gains and improvement.” said Yasushi Matsui, CFO, Vice President and member of the Board of Directors of DENSO CORPORATION.
“In this fiscal year, we forecast 7,120.0 billion yen (US$50.2 billion) in revenue and 495.0 billion yen (US$3.5 billion) in operating profit. Forecast of revenue will be based on actuals of foreign exchange gains in the third quarter and forecast in the fourth quarter. Forecast of operating profit will be based on the adding provision for quality.”
In Japan, revenue increased to 3,148.3 billion yen (US$22.2 billion), up 17.0% from the previous year, and operating profit was 22.4 billion yen (US$157.6 million), down 84.8% from the previous year.In North America, revenue increased to 1,286.0 billion yen (US$9.1 billion), up 18.8% from the previous year, and operating profit was 27.5 billion yen (US$194.0 million) (Operating loss of 15.0 billion yen in the same quarter of the previous year).
In Europe, revenue increased to 570.4 billion yen (US$4.0 billion), up 16.2% from the previous year, and operating profit was 22.4 billion yen (US$157.9 million), up 145.6% from the previous year.
In Asia, revenue increased to 1,521.2 billion yen (US$10.7 billion), up 3.5% from the previous year and operating profit was 149.4 billion yen (US$1,053.6 million), up 31.6% from the previous year.
In other areas, revenue increased to 81.9 billion yen (US$0.6 billion), up 6.6% from the previous year, and operating profit was 15.1 billion yen (US$106.3 million), down 2.3% from the previous year.Forecast for Fiscal Year Ending March 31, 2024
Full-Year Forecast Changes from Previous Forecast Revenue 7,120.0 billion yen
[US$50.2 billion]+120.0 billion yen
(+1.7 percent)Operating profit 495.0 billion yen
[US$3.5 billion]-135.0 billion yen
(-21.4 percent)Profit before profit taxes 548.0 billion yen
[US$3.9 billion]-136.0 billion yen
(-19.9 percent)Profit attributable to owners of the parent company 380.0 billion yen
[US$2.7 billion]-90.0 billion yen
(-19.1 percent)ROE 8.1% -1.6% Original – DENSO
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DENSO Corporation announced changes to its organizational structure, executives’ responsibilities and personnel, effective January 1, 2024.
DENSO has stated at “DENSO DIALOG DAY 2023” that it will evolve from being “a Tier 1 supplier that supports the auto industry” to “a Tier 1 supplier that supports a mobility-centered society”, aiming to maximize the value of the entire mobility society, in addition to vehicles.
To achieve this, DENSO has announced its commitment to three challenges: “evolution of mobility,” “strengthening of foundational technology,” and “creating new value.” To materialize these goals, the following organizational and executive changes will be implemented.
In terms of the executive structure, two executive vice presidents will assume responsibility for the company’s major management resources in the following two areas, accelerating the formulation and execution of growth strategies. Additionally, to strengthen and expand technological development areas that will spur new growth, a Chief Innovation Officer (CIO) position will be established.
Original – DENSO
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DENSO CORPORATION hosted its annual Dialog Day on November 15th. Aiming to enhance its concepts “Green” and “Peace of Mind” to evolve from “a Tier 1 supplier that supports the auto industry” to “a Tier 1 supplier that supports a mobility-centered society,” DENSO has announced a new management structure strategy, its corporate value improvement strategy, its fundamental technology strategy and creation of new values.
To evolve from “a Tier 1 supplier that supports the auto industry“ to “a Tier 1 supplier that supports a mobility-centered society,” DENSO is implementing three intiatives: “evolution of mobility,” “strengthening fundamental technologies,” and “creating new value.”
1.Evolution of mobility
・ Electrification
DENSO aims to grow its electrification business to 1.2 trillion yen in sales by 2025 and 1.7 trillion yen in 2030 by strengthening its “product competitiveness,” “product lineups” and “manufacturing.”In terms of “product competitiveness,” the company will refine the functions and performance of its core products, improve competitiveness and provide a wide range of products, from core components to energy management systems, to meet the diverse needs of customers’ “product lineups.” In “manufacturing,” DENSO will shorten the development period in half so it can quickly deliver products to customers around the world. In support of this, the company will establish a mass-production system in 5 regions around the world.
・ADAS
DENSO aims to achieve sales of 520 billion yen by 2025 and 1 trillion yen in 2030 by strengthening its “product competitiveness,” “product lineups” and “technology development.”
For “product competitiveness,” in 2022, the company began mass producing Global Safety Package 3, a new-generation advanced safety system. It achieves optimal driver assistance by connecting ADAS products to HMI (Human Machine Interface) and infrastructure. In terms of “product lineups” DENSO will contribute to safety by increasing the percentage of vehicles equipped with our products and systems that meet the needs of customers and local communities. In “technology development,” we will strengthen the development of emerging technologies that support the evolution of systems and components.2.Strengthening fundamental technologies
・Semiconductor
DENSO will actively invest about 500 billion yen by 2030 and will triple the scale of the business to 700 billion yen from the current level by 2035.
In terms of SiC power semiconductors, which contribute to the improvement of electricity consumption of BEV, the company will accelerate the introduction of SiC power semiconductors to the market by promoting technological initiatives such as the practical application of high-quality wafers and the reduction of costs, and by achieving stable supply through cooperation with our partners. Regarding analog semiconductor ASICs, we will differentiate ourselves by developing in-house products that suppot customers’ needs. In terms of the SoC, we will build an optimal SoC for in-vehicle use by advancing industry cooperation, including the acquisition of chiplet technology.・Software
Relating to our workforce, in 2030, DENSO will increase the number of software engineers to 18,000, 1.5 times more than the current level. In 2035, we increased the size of our business to 800 billion yen, four times more than the current level.
As the scale of in-vehicle software becomes increasingly large and the cross-domain development such as powertrains, body, and communications is required, DENSO will realize a large-scale integrated Electronic Control Unit (ECU) with high quality and high accuracy in software by utilizing the diverse software IP and mounting capabilities DENSO has accumulated over the years. In the age of Software-Defined Vehicles (SDV), when software and hardware are separated and begin to be distributed separately, we will ollaborate with customers to develop business and lead standardization across our customers.3.Creating new value
DENSO aims to grow the new value business to 300 billion yen in sales by 2030 and to 20% of total sales in 2035.
While we are developing technologies and considering commercialization in various fields, we will enter the hydrogen business in the energy field. Utilizing technologies we have developed in the automotive industry, such as ceramics, ejectors, and thermal management, we will introduce SOEC and SOFC to the market. In the food and agriculture sector, we will introduce manufacturing principles to farming to contribute to the stable supply of food,. We will also accelerate our global business development by combining the strengths of the wholly owned Certhon Group with those of DENSO.
Through the three intiatives and under the new management structure, we will advance our business in the field of “Green” and “Peace of Mind” and aim to achieive 7.5 trillion yen in sales by 2030.Management that values our people
DENSO will recruit new employees and shift current ones in mature fields to electrification and software areas to grow that team to about 4,000 employees from 2022 to 2025. The company values the intrinsic talents and passions of every employee, which is the driving force behind all DENSO activities. DENSO will promote management that values its people in order to connect its company philosophy with employees’ motivations.Original – DENSO
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DENSO announced global financial results for its second quarter, ending September 30, 2023, for its 2024 fiscal year, ending March 31, 2024:
- Consolidated revenue totaled 3,513.5 billion yen (US$23.5 billion), a 16.3 percent increase from the previous year.
- Consolidated operating profit totaled 211.8 billion yen (US$1.4 billion), a 36.3 percent increase from the previous year.
- Consolidated profit attributable to owners of the parent company totaled 168.9 billion yen
(US$1.1billion), a 59.7 percent increase from the previous year.
“Revenue in the second quarter increased compared to the previous year due to the strong vehicle sales mainly in Japan and North America, foreign exchange gains and expansion of products for electrification, safety and peace of mind areas though decrease of Japanese, European, and American vehicle sales in China.
Operating profit in the second quarter increased compared to the previous year due to production volume, foreign exchange gains and improvement, though the continuing rise in the cost of materials, especially electronic components, and the accelerating investment for future as R&D.” said Yasushi Matsui, CFO, Vice President and member of the Board of Directors of DENSO CORPORATION.
“In this fiscal year, we forecast 7,000.0 billion yen (US$46.8 billion) in revenue and 630.0 billion yen (US$4.2 billion) in operating profit. Revenue and operating profit will be based on strong sales actuals in the first half and forecast of foreign exchange gains and sales expansions in the third quarter. The annual dividends for the end of the fiscal year will be 52 yen, a 2 yen increase from the previous announcement. This means 208 yen as pre-stock split conversion. We will continue to improve DOE levels over the long term and in a stable manner.”
In Japan, revenue increased to 2061.2 billion yen (US$13.8 billion), up 18.5% from the previous year, and operating profit was 85.2 billion yen (US$569.5 million), down 6.4% from the previous year.
In North America, revenue increased to 856.6 billion yen (US$5.7 billion), up 19.8% from the previous year, and operating profit was 14.2 billion yen (US$94.8 million) (Operating loss of 13.0 billion yen in the same quarter of the previous year).
In Europe, revenue increased to 372.8 billion yen (US$2.5 billion), up 15.8% from the previous year, and operating profit was 13.9 billion yen (US$92.8 million), up 285.0% from the previous year.
In Asia, revenue increased to 974.0 billion yen (US$6.5 billion), up 1.4% from the previous year and operating profit was 88.2 billion yen (US$589.6 million), up 30.9% from the previous year.
In other areas, revenue increased to 60.3 billion yen (US$0.4 billion), up 12.4% from the previous year, and operating profit was 11.5 billion yen (US$76.9 million), up 0.8% from the previous year.
Forecast for Fiscal Year Ending March 31, 2024
Full-Year Forecast Changes from Previous Forecast Revenue 7,000.0 billion yen
[US$46.8 billion]+300.0 billion yen
(+4.5 percent)Operating profit 630.0 billion yen
[US$4.2 billion]+30.0 billion yen
(+5.0 percent)Profit before profit taxes 684.0 billion yen
[US$4.6 billion]+30.0 billion yen
(+4.6 percent)Profit attributable to owners
of the parent company470.0 billion yen
[US$3.1 billion]+26.0 billion yen
(+5.9 percent)ROE 9.7% +0.4% Original – DENSO
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DENSO CORPORATION hosted a press conference at JAPAN MOBILITY SHOW 2023 held at Tokyo Big Sight on October 26. Shinnosuke Hayashi, President and COO introduced the strategy to maximize company’s contributions to “Green” and “Peace of Mind.”
Shinnnouke Hayashi, President and COO of DENSO CORPORATION said that it is a great pleasure that the Tokyo Motor Show, which has attracted much public attention for decades, has been renamed the JAPAN MOBILITY SHOW. This change reflects the fact that we are entering an era of creating new value by addressing various issues from the viewpoint of a mobility-centered society instead of just vehicles and by connecting people and technologies across industries. This means that DENSO must meet major challenges.
To evolve from “a Tier 1 supplier that supports the auto industry “to “a Tier 1 supplier that supports a mobility-centered society” to create value for more diverse customers, the company addresses three intiatives. To promote these three initiatives, DENSO will recruit new employees in the electrification and software field and actively shift the employees from the mature field to the electrification and software fields and strengthen about 4,000 employees during the four years from 2022 to 2025.- The contribution to the “evolution of mobility”
In the “Green” field, “the environment”, in addition to the product lineup in the “horizontal” direction to enable installation in HEVs, PHEVs, BEVs, and FCEVs, the lineup will be expanded in the “vertical” direction ranging from large systems, which link electrification products with energy management, to components, including power modules, thereby meeting the needs of various customers as BEVs proliferate and helping to achieve carbon neutrality in respective countries. In the “Peace of Mind” field, “worry-free society”, in addition to around-vehicle monitoring systems, DENSO will focus on driver status monitoring systems and cloud-based large systems, which connect with the social infrastructure. Through these efforts, the company will help eliminate fatalities.
Furthermore, DENSO will extend its commitment to the evolution of mobility to the sky to help realize more freedom of traveling and expand the possibilities of mobility.
- The challenge to “to create new value”
DENSO has been studying the possibility of developing and commercializing many technologies in non-mobility fields, including energy, food and agriculture, and the circular economy. Specifically, the company plans to market energy system products such as Solid Oxide Electrolysis Cell and Solid Oxide Fuel Cell in 2024 and beyond.
- Strengthening semiconductors and software
In terms of semiconductors, DENSO will actively invest about 500 billion yen by 2030. DENSO will triple the scale of the business from the current level by 2035. To expand production, the company must ensure stable procurement of materials. Thus, DENSO will forge strategic partnerships with various companies.
In the softaware field, the implementation phase to embody concepts, the company will accelerate the planning of electronic platform and over-the-air technology development based on user needs while strengthening partnerships with various customers and promote integrated development across companies. DENSO will increase the number of software engineers and improve their skills and integrate two group companies which have excellent proprietary technologies, into DENSO. One is NSITEXE, which specializes in the semiconductor intellectual property, and the other is AUBASS, which specializes in developing basic in-vehicle software. DENSO will double the speed of development by applying specialized AI, which incorporates company’s knowledge and experience gained through in-vehicle software.
Original – DENSO
- The contribution to the “evolution of mobility”