TOKYO Feb 3 Denso Corp, the world's
second largest supplier of automotive parts, raised its annual
operating profit forecast by 5.6 percent, slightly below
expectations, as a weaker yen helped boost exports, resulting in
foreign exchange gains.
Denso forecast a 380 billion yen ($3.73 billion) annual
operating profit for the year ending March, up 44.8 percent from
a year ago but lower than the average estimate of 384.7 billion
yen in a Thomson Reuters I/B/E/S poll of 17 analysts.
Denso's nine-month operating profit rose 54.2 percent
year-on-year to 289.9 billion yen after it saw an increase in
car production in North America.
Denso is 22.3 percent owned by Toyota Motor Corp,
which is also a major client. It also supplies parts to Honda
Motor Co Ltd and General Motors Co as well as
other big global automakers.
Denso shares were down as much as 2 percent after the
numbers were released, hitting a six-week low of 5,230 yen.
The shares have risen by more than 75 percent since the
beginning of last year, outpacing a 42 percent rise in Tokyo's
benchmark Nikkei average.