TOKYO (Reuters) -Japanese auto parts maker Denso, a top Toyota supplier, posted a near six-fold jump in third-quarter operating profit on Friday, as currency gains and cost-cutting efforts offset a hit from lower vehicle production volumes in Asia.
The world’s second-largest vehicle parts manufacturer reported an operating profit of 150.3 billion yen ($975.97 million) for the three months to Dec. 31, below the average estimate of 152.5 billion yen from eight analysts polled by LSEG. A year earlier, Denso had posted a much smaller operating profit of 26.8 billion yen.
The company maintained its full-year forecast for the fiscal year ending March 2025 at 550 billion yen.
Denso shares briefly rose 2.3% before losing gains and were last down 0.2% at the lunch break.
The company has been trying to overcome less-favourable conditions in China where legacy European and Japanese carmakers face heavy competition, including on price, from Chinese brands.
The automotive components maker has also been hurt by lower vehicle production and sales volumes across the wider region.
Denso gets more than half its revenue from Toyota group companies, including truck unit Hino Motors and small-car maker Daihatsu.
Over the April-December period, revenues from other automakers such as Volkswagen Group, Nissan Motor, Isuzu Motors and Hyundai-Kia have fallen, while that from Toyota group companies has risen.
($1 = 154.0000 yen)
(Reporting by Daniel Leussink; Editing by Jacqueline Wong and Kate Mayberry)
