TOKYO, Oct 31 (Reuters) - Japan’s Denso Corp on Wednesday lifted its forecast for full-year operating profit by 0.8 percent after a production boost delivered a smaller-than-expected slide in second quarter profit, sending its shares higher.
Denso, one of the world’s biggest auto component suppliers, said operating profit fell 25.5 percent to 152.4 billion yen ($1.35 billion) in the July-September period due partly to higher investments in new technologies.
However, the profit was higher than a mean estimate of 90.4 billion yen by nine analysts polled by Refinitiv.
Shares of Denso, a major supplier to Toyota Motor Corp , traded as much as 5 percent higher after the earnings announcement.
Denso said it now expected full-year operating profit of 393 billion yen, up from a previous forecast of 390 billion yen and the second time it raised its outlook since the start of the financial year.
The latest profit forecast was still 4.8 percent lower than results a year ago, with Denso expecting higher labour costs and increased R&D spending to drag on its earnings.
Denso also said it would buy back and cancel more than 0.7 percent of its outstanding shares. ($1 = 113.1700 yen) (Reporting by Naomi Tajitsu; editing by Darren Schuettler)
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