Japan's Denso Corp, a major supplier to Toyota Motor Corp, lowered its operating profit forecast for the current business year by 14 per cent, expecting automakers to undershoot production plans.

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The company, which specialises in vehicle air conditioning, power trains and automated driving systems, lowered its operating profit forecast to 480 billion yen ($3.61 billion) from 560 billion yen for the year ending March 31.

Denso initially estimated automakers' production would be 5 per cent lower than they had planned, but their output fell 22 per cent short of planning in the April-June quarter due to a pandemic lockdown in Shanghai.

Denso has now adjusted its estimate of vehicle production to a 10 per cent shortfall for each of quarter from the second quarter onward, senior executive officer Yasushi Matsui said.

The company reported a 41 per cent slump in first-quarter profit, hurt by automakers' production cuts and by high costs of commodities and logistics.

Denso's operating earnings of 63.6 billion yen for the three months to June 30 fell short of an average estimate of 80.8 billion yen from 10 analysts, according to Refinitiv data. A year earlier, the company earned 107.2 billion yen. Revenue rose 4.3 per cent to 1.42 trillion yen.

Matsui said he was concerned that logistics costs could continue to trend upward. The company would be greatly affected by high shipping charges due to a shortage of containers, he said.