Denso Corp Friday said it reported 75% drop in net profit in the first fiscal half, Market Watch reported.
The net profit fell due to stronger yen, high material costs and a fall in vehicle production at Japanese car makers after the March earthquake.
The company posted a net profit of Y23.28 billion in the April-September period, down from Y93.70 billion in the same period a year earlier.
Japan’s biggest automobile components maker by revenue logged sales of Y1.409 trillion, down 11% from Y1.590 trillion. The auto parts supplier chalked about half of its annual sales from selling products to Toyota group companies.
Denso Corp has maintained its net profit forecast of Y98 billion for the fiscal year through March. It lowered its sales outlook to Y3.160 trillion from Y3.170 trillion.
It sees encouraging signs of increasing vehicle production at Japanese car makers; it now bases its earnings on a stronger yen, expecting the dollar at Y79 and the euro at Y110, compared with its previous rates of 781 and Y113.
Denso Corporation is a global automotive components manufacturer headquartered in Japan. The company is known for creating the QR code, a two-dimensional barcoding system which is particularly prevalent in Japan.
