Toyota supplier Denso slashes full-year operating profit forecast on higher costs

Japan’s Denso, a major auto parts supplier to Toyota, slashed its full-year operating profit forecast by nearly a fifth, reflecting a drag from U.S. import tariffs and a hit from rising material and fixed costs.

The company cut its forecast for the fiscal year ending in March by 17.8 per cent to 535 billion yen ($3.44 billion) from a previous estimate of 651 billion yen.

The world’s second-largest maker of vehicle parts generates about 56 per cent of its revenue from Toyota group companies.