Denso Cuts Operating Profit Outlook on Recalls, Safety Scandals

  • Toyota supplier also impacted by certification issues
  • Faulty fuel pumps have triggered 4.3 million recalls worldwide
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Denso Corp. cut its full-year guidance after one of its parts caused millions of recalls, while multiple fraud scandals disrupt production at a number of the Japanese carmakers it supplies.

The parts manufacturer now forecasts operating profit of ¥495 billion ($3.4 billion) for the fiscal year ending in March, compared with its previous outlook for ¥630 billion, issued Oct. 31.