First-quarter profit at Denso Corporation, a Japanese company that makes semiconductors for cars, fell 41% over lower production and higher input and logistics costs.
The company, a major Toyota supplier, has been hit by the global shortage of semiconductors.
Denso’s operating earnings of 63.6 billion yen ($473.32 million) 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.
The company lowered its full-year operating forecast to 480 billion yen from 560 billion yen for the year ending March 31.
The two-year long semiconductor crunch and supply disruptions caused by China’s Covid-19 curbs have forced car makers including Toyota to repeatedly cut production.
On Thursday Toyota said production for the April-June quarter fell 10% short of its initial plan.
But a recent glut in chip supplies due to a pullback in demand in other markets like consumer electronics may finally start to ease things for car makers.
- Reuters, with additional editing by George Russell
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