TOKYO -- Denso Corp. aims to raise revenues 25 percent over four years while also raising profit margins.
The company announced those goals as part of its new midterm plan. And the Japanese megasupplier jumped off to a good start with its latest quarterly results.
By March 31, 2011, the supplier aims to raise its consolidated revenues to 4 trillion yen, or $34.75 billion at current exchange rates. Revenues were $27.70 billion in the fiscal year ended March 31, up 13.9 percent.
Denso also aims to raise its return on equity to 10 percent by March 31, 2011. Its return was 9.4 percent last fiscal year.
In the quarter ended June 30, Denso's revenues rose 13.6 percent from a year earlier to $7.45 billion. Operating profits rose 16.0 percent to $717.8 million. Net income jumped 62.5 percent to $509.1 million.
Revenues and profits rose because of strong, export-led production by Denso's customers in Japan.
The company also was helped by growing sales to customers abroad, including Toyota Motor Corp. and General Motors. Lower tax rates boosted net.
Denso is part of Toyota Group.
You may e-mail James B. Treece at [email protected]