Denso Second-Quarter Operating Profit Drops 18 Percent
Toyota supplier Denso posted an 18 percent drop in second-quarter operating profit due to rising material and component costs. Despite the profit decline, the company maintained its full-year profit forecast and announced a major share buyback program.
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DENSO CORP posted an 18% fall in second-quarter operating profit to 86 billion yen on Thursday morning, missing consensus estimates. The drop stems from higher material and parts costs alongside ongoing investments at the primary auto parts supplier to TOYOTA MOTOR CORP. Despite the regional profit contraction, management maintained its full-year operating profit forecast at 500 billion yen ($3.2B).
