DENSO’s operating profit forecast for this fiscal year is 87% higher, as all cross-shareholdings continue to be sold | Reuters

At the financial results conference, President Hayashi said that the elimination of cross-shareholdings is important for increasing the competitiveness of the industry as a whole, and that the company will continue to “deepen conversations with related companies to achieve our goal.”

Vice President Yasushi Matsui, who was also present at the press conference, said regarding the sale of cross-shareholdings, “Basically, we are not going to hold a portion of the shares, but rather sell all the shares.” “It’s important to do business properly,” he said, evaluating the company’s strength and product competitiveness. The funds obtained from the sale will be used for growth investments such as technology development and M&A.

The operating profit forecast for this fiscal year of 714 billion yen is slightly lower than the average forecast of 730.9 billion yen of 15 analysts compiled by IBES. The previous highest operating profit was 426.1 billion yen in the fiscal year ended March 2023.

President Hayashi stated that the slowdown in global EV demand is “within expectations,” and believes that EV demand will grow in the medium to long term, but he is not sure how the sales composition ratio of EVs and HVs will change in the future. He said he is ready to respond flexibly.

This fiscal year’s sales revenue, which corresponds to sales, is expected to increase by 2.9% from the previous fiscal year to 7.35 trillion yen, and net income is expected to increase by 68.2% from the previous fiscal year to 526 billion yen. Update all the best.

This fiscal year, the impact of quality-related costs due to fuel pump defects that were recorded in the previous fiscal year will not be affected, and price pass-through due to cost increases such as wage increases will also contribute. The assumed exchange rate for this fiscal year’s forecast is 1 dollar = 145 yen (144.6 yen in the previous fiscal year) and 1 euro = 155 yen (156.8 yen in the previous fiscal year).

Operating profit for the fiscal year ending March 2024 (previous period) was 380.5 billion yen, a decrease of 10.7%. In addition to the soaring prices of electronic parts and quality-related costs, the suspension of vehicle shipments due to certification fraud at Daihatsu Motor Corporation and Toyota Industries Corporation affected the market.

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