Toyota supplier Denso cuts full-year profit forecast by 21% (updated)

DENSO

31/10/2024 02:37

(Adds details from briefing, background)
       TOKYO, Oct 31 (Reuters) - Japan's Denso  6902.T , a
leading supplier to Toyota  7203.T , slashed its full-year
operating profit forecast by 21% on Thursday, mainly due to less
favourable conditions in China and wider Asia.
    The company cut its operating profit forecast for the
financial year to March 31 to 550 billion yen ($3.58 billion)
from 692 billion yen, missing the average estimate of 672.2
billion yen, according to 16 analysts surveyed by LSEG.
    Quarterly operating profit also missed analysts'
expectations, but still rose due to foreign exchange gains and
cost control efforts even as it faced pressure from lower
vehicle production and sales volumes in Asia.
    Operating profit for the July-September period rose 11% to
130.7 yen, versus 136.5 billion yen estimated on average by
seven analysts. A year earlier, the company earned 117.4 billion
yen in profit.
    The world's second-biggest maker of automotive components
gets more than half its revenue from the Toyota group, including
truck unit Hino Motors  7205.T  and small-car maker Daihatsu.
    Its shares surged more than 5% after the announcement,
before partly giving back the gains and ending the morning
session 2.8% higher.
    ($1 = 153.5000 yen)
    

 (Reporting by Daniel Leussink; Editing by David Dolan and Shri
Navaratnam)
 ((daniel.leussink@thomsonreuters.com; Twitter:
@danielleussink;))