Toyota supplier Denso posts drop in first-quarter profit
Denso’s signboard its office in Tokyo, Japan, March 24, 2026. REUTERS/Kim Kyung-Hoon
TOKYO, July 31 : Japan's Denso, a major auto parts supplier to Toyota, posted a 21.5 per cent decline in first-quarter operating profit on Friday, as rising parts and material costs outweighed a boost from a weaker yen.
The auto parts supplier, which generates around 55 per cent of its revenue from Toyota group companies, maintained its full-year operating profit forecast of 500 billion yen ($3.1 billion) for the year ending on March 31, 2027.
Operating profit for the three months to end-June totalled 84.2 billion yen, versus a median forecast of 102.4 billion yen in a poll of nine analysts surveyed by LSEG. A year earlier, the company had posted an operating profit of 107.2 billion yen.
Denso shares sold off sharply following the release, last trading down more than 8 per cent compared to a 4.4 per cent rise in the main Nikkei 225 index.
Denso CFO Seiji Maeda told reporters the company has around 30 suppliers on Japan's Kyushu island, which was struck by a magnitude-7.1 earthquake this week.
One supplier had reported being impacted by the quake, while 13 others were still assessing the situation and 16 had confirmed no disruptions, Maeda said. Denso was working with Toyota group companies and suppliers to support recovery efforts, he said.
The quake had not affected Denso's own production at its unit in Miyazaki, south of Kumamoto where the earthquake struck on Tuesday, Maeda said.
($1 = 160.5500 yen)
