TOKYO (Reuters) — Toyota-affiliated supplier Denso Corp. today lowered its full-year net profit forecast by almost 5 percent, saying it expects the yen to strengthen slightly against the U.S. dollar.
The world’s second-largest maker of automotive parts cut its forecast for operating profit in the year ending March 31 to 332 billion yen ($2.78 billion) from a previous forecast of 350 billion.
That would mean a lower net profit of 248 billion, down 4.6 percent from the amount it stated in October, the company said.
Denso also changed its currency rate forecast for the fiscal year to 120 yen against the U.S. dollar, and 132 yen against the euro, from a previous forecast for 121 yen to the dollar and 133 yen to the euro.
For the April-December nine-month period, Denso reported a 2.3 percent increase in operating profit to 243.1 billion yen, boosted by higher sales in North America, Europe and Asia.