Toyota supplier Denso drops as it cuts outlook on FX, quality costs

Published 1 week ago Positive
Toyota supplier Denso drops as it cuts outlook on FX, quality costs
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Toyota (TM [https://seekingalpha.com/symbol/TM]) supplier Denso (OTCPK:DNZOF [https://seekingalpha.com/symbol/DNZOF]) cut its full-year operating profit forecast for the fiscal year ending March 31, 2025, by 21% to 550 billion yen (about $3.58 billion) from a previous estimate of 692 billion yen.

This reduction was mainly due to less favorable market conditions in China and wider Asia.

Despite this, Denso (OTCPK:DNZOF [https://seekingalpha.com/symbol/DNZOF]) posted a slight 11% rise in operating profit for the July-September quarter to 130.7 billion yen.

In a separate announcement, Toyota Industries said its board of directors had agreed for the company to sell its entire stake in Denso between December and March 2027.

Denso stock price slumped more than 6% on Friday on the Tokyo Stock Exchange.

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