Denso Corp., Toyota Motor Corp.’s top supplier, says production at the automaker should recover swiftly, leaving Denso on track to beat its own profit forecast for the current fiscal year.
Denso will likely take a profit hit of about ¥20 billion ($182 million) to ¥30 billion in September due to Toyota’s production cuts, Chief Financial Officer Yasushi Matsui said. But that loss is more than covered by the ¥75 billion in potential losses Denso had earlier worked into forecasts for the fiscal year ending March, he said.
"There are automakers that can’t up their production after stumbling, but if Toyota says it will recover, it really will,” Matsui said in an interview at the company’s headquarters in Kariya, Aichi Prefecture, on Friday.