Higher parts and material expenses resulted in an 18 percent decrease in Denso's operating profit for the second quarter. The manufacturer recorded 86 billion yen ($545 million) in operating profit, falling short of the 104.8 billion yen median forecast projected by nine LSEG analysts. The previous year's comparative period yielded 104.2 billion yen in profit. Even with the quarterly contraction, the supplier preserved its existing full-year operating profit target of 500 billion yen.
Key points
Rising material and parts expenses directly compressed quarterly margins for the Japanese…: Rising material and parts expenses directly compressed quarterly margins for the Japanese supplier.
The company's quarterly operating profit missed consensus analyst projections by nearly 1…: The company's quarterly operating profit missed consensus analyst projections by nearly 19 billion yen.
Denso retained its full-year operating profit forecast of 500 billion yen despite current…: Denso retained its full-year operating profit forecast of 500 billion yen despite current headwinds.
Sources checked by our analysis pipeline: 1
TOKYO, Oct 29 : Japan's Denso, a major auto parts supplier to Toyota, reported an 18 per cent fall in second-quarter operating profit on Thursday, as higher parts and material costs weighed on results.
Operating profit for the July-September quarter was 86 billion yen ($545 million), compared with 104.2 billion yen a year earlier and a median forecast of 104.8 billion yen in a poll of nine analysts surveyed by LSEG.
Denso kept its full-year operating profit forecast at 500 billion yen.
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