Toyota supplier Denso cuts full-year operating profit forecast (updated)

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03/02/2023 03:16

(Recasts, adds details on outlook)
       TOKYO, Feb 3 (Reuters) - Japan's Denso Corp  6902.T , a
leading supplier to Toyota Motor Corp  7203.T , on Friday
slashed its annual operating profit forecast by 12.5% as it
warned a chip shortage could cause auto production cuts, missing
analysts' estimates.
    The company, a major manufacturer of automotive parts and
chips, lowered its full-year operating profit forecast to 420
billion yen ($3.26 billion) for the year to end-March, from 480
billion yen expected previously. 
    Denso said the new forecast took into account the pandemic's
impact in China and the risk of vehicle production cuts due to
the ongoing global semiconductor shortage, despite efforts being
taken to reduce costs.
    The downward revision comes after the world's top-selling
auto maker Toyota in November lowered its vehicle production
forecast for the current financial year through March to 9.2
million vehicles from 9.7 million amid the chip shortage. 
    Denso's profit outlook was lower than a 474.21 billion yen
average forecast by 20 analysts, according to Refinitiv data.
    The company, which specialises in systems for running
gasoline engines and driving hybrid and battery electric
vehicles, gets about half of its revenue from the Toyota group,
which also includes Toyota truck unit Hino Motors  7205.T  and
small-car maker Daihatsu.
    Denso, which counts outgoing Toyota President Akio Toyoda as
a board member, posted an operating profit of 112.5 billion yen
for the three months to Dec. 31, versus an average 125.71
billion yen profit estimated by 10 analysts.
        A year earlier, it earned 96.9 billion yen in the third
quarter.      
($1 = 128.6600 yen)
 (Reporting by Daniel Leussink; Editing by Muralikumar
Anantharaman and Jamie Freed)
 ((daniel.leussink@thomsonreuters.com; Twitter:
@danielleussink;))