TOKYO -- Denso Corp., the worlds second-biggest auto supplier, reversed its full-year profit forecast to a loss after posting a 68.8 percent tumble in operating income for the first three quarters of its fiscal year.
The Japanese parts maker today predicted an operating loss of ¥62.0 billion ($681.1 million) for the fiscal year ending March 31. Denso had forecast an operating profit of $417.4 million.
The year before, Denso booked a $3.8 billion operating profit on what was then booming business at Toyota Motor Corp., its biggest customer and shareholder. But the global financial meltdown has wiped out those earnings. A soaring yen also hurt results.
In the first nine months of its current fiscal year, Densos operating profit fell to $935.4 million. Sales slid 11.6 percent to $28.9 billion.
Densos business suffered worldwide. No region saw increased sales or operating profit.
In the Americas, sales during the nine months suffered from falling production at Toyota and the Detroit 3, Denso said. Regional operating profit plunged 60.4 percent to $141.4 million in the quarter on a 24.1 percent drop in sales to $5.2 billion.
European operating profit fell 55.5 percent to $84.1 million. A 16.5 percent sales decrease there outweighed Densos efforts to cut costs.
In Japan, Densos biggest market, operating profit all but vanished, tumbling 98.2 percent to $31.5 million from a year earlier.
Sales there declined 10.2 percent as Japanese carmakers slashed output and reeled in exports to the United States and Europe.
On a net income basis, Denso also lowered its outlook.
The company now expects a net loss of $703.1 million instead of an earlier predicted net profit of $109.9 million. Both results mark a dramatic turnaround from the $2.7 billion in net income Denso booked last year.
Denso ranks No. 2 on the Automotive News list of the top 100 global suppliers, with estimated worldwide sales to automakers of $35.70 billion in its 2007 fiscal year.