TOKYO -- Japan, Asia and Australia propelled Denso Corp.'s strong earnings in the six months ended Sept. 30.
In North America and Europe, where financially troubled suppliers Delphi Corp. and Visteon Corp. have most of their business, Denso also struggled.
Operating income fell 22 percent in the Americas to 11.83 billion yen, or $104.5 million at current exchange rates.
The drop was caused by costs related to transferring some production from Michigan to a new factory in Arkansas, plus expenses related to expanding the product lineup.
In Europe, Denso reduced its operating loss because of higher sales to the Toyota Motor Corp.-PSA/Peugeot-Citroen SA joint venture in the Czech Republic. But the supplier remained in the red by $7.2 million, compared with a loss of $19.1 million a year earlier.
Overall operating income rose 11.6 percent to 119.74 billion yen, or $1.06 billion at current exchange rates. Revenues rose 11.2 percent to $13.31 billion. Net income rose 1.2 percent to $593.7 million.
Denso ranks No. 4 on the Automotive News list of top 100 global suppliers with worldwide original-equipment sales of $19.93 billion in 2004.
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