TOKYO, Feb 3 (Reuters) – Japan’s Denso, a major auto parts supplier to Toyota, slashed its full-year operating profit forecast by nearly a fifth reflecting drag from U.S. import tariffs and a hit from rising material and fixed costs. The company slashed its forecast for the fiscal year ending March 2026 by 17.8% to 535 […]
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Toyota supplier Denso slashes full-year operating profit forecast on higher costs
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TOKYO, Feb 3 (Reuters) – Japan’s Denso, a major auto parts supplier to Toyota, slashed its full-year operating profit forecast by nearly a fifth reflecting drag from U.S. import tariffs and a hit from rising material and fixed costs.
The company slashed its forecast for the fiscal year ending March 2026 by 17.8% to 535 billion yen ($3.44 billion) from 651 billion yen expected previously.
The world’s second-largest vehicle parts manufacturer reported a 9.4% rise in operating profit for the three months ended December 31 to 164.5 billion yen, in line with the average estimate from eight analysts polled by LSEG.
The company posted operating profit of 150.3 billion yen in the same period a year earlier. It said expected gains from a weaker yen helped offset rising cost pressures and a smaller expected impact from steps the company is taking to counter the U.S. tariff hit.
($1 = 155.4600 yen)
(Reporting by Daniel Leussink; Editing by Christian Schmollinger)

