Half-Year Financial Forecast is Revised due to the loss
Kariya (Japan) ―DENSO Corporation today announced that the extraordinary loss resulting from the disposal of investment securities totaled 20.6 billion yen (US$194.2 million).
“Due to the financial market disturbance caused by the subprime problem, a portion of investment securities owned by DENSO have sharply depreciated in market price,” said Koji Kobayashi, senior managing director of DENSO Corporation. “We considered that it would be difficult for these investment securities to recover for a short-term period under the current market environment, and therefore, we determined to dispose of the depreciated securities, and booked 20.6 billion yen as extraordinary loss for the half-year period.”
Due to the extraordinary loss, the half-year financial forecast was revised as follows.
Forecast for First-Half Fiscal Year Ending September 30, 2008
|
|
Half-Year Forecast
(Original) |
Half-Year Forecast
(Revised) |
Changes by Revisions |
Previous Half-Year Results |
|
Net Sales |
1,920.0 billion yen
(US$18.1 billion) |
1,920.0 billion yen
(US$18.1 billion) |
- |
1,947.8 billion yen
(US$18.4 billion) |
|
Operating Income |
113.0 billion yen
(US$1.1 billion) |
113.0 billion yen
(US$1.1 billion) |
- |
169.1 billion yen
(US$1.6 billion) |
|
Net Income |
76.0 billion yen
(US$716.4 million) |
61.0 billion yen
(US$575.0 million) |
-15.0 billion yen
(-19.7 percent) |
118.3 billion yen
(US$1.1 billion) |
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Its customers include all the world’s major carmakers. Worldwide, the company employs approximately 119,000 people in 32 countries and regions, including Japan. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges. For more information, go to www.globaldenso.com or visit our media website at www.densomediacenter.com.
(Notes)
U.S. dollar amounts have been translated, for convenience only, at the rate of 106.08 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on September 25, 2008. Billion is used in the American sense of one thousand million.