NAGOYA, Japan -- Brisk autoparts sales in China and corporate tax cuts in the U.S. have prompted five major Toyota Motor group companies to upgrade their net profit forecasts for the year ending in March.
Denso on Friday raised its net profit guidance by 6 billion yen ($54.4 million) to 306 billion yen when announcing April-December results. Sales are now expected to reach 5.03 trillion yen, up 30 billion yen from its earlier projection. Sensors, cameras and other products used in advanced driver-assist systems for autonomous vehicles have sold well. And air conditioning systems enjoyed strong demand from Chinese automakers.
Aisin Seiki, which revised its net profit guidance up to 129 billion yen from 127 billion yen, raised its operating profit expectations for Japan and China. With sales of automatic transmissions rising in China and elsewhere, the company now projects their sales to grow 13% to 9.8 million units.
Toyota Industries boosted its net profit projection by 15 billion yen to 157 billion yen, with the upgrade solely linked to lower deferred tax liabilities stemming from the U.S. tax cuts.
Toyoda Gosei, which makes autoparts and lighting products, kept its net profit guidance unchanged thanks to the tax cuts, despite a downgrade to the operating profit outlook due to struggling European operations.
The U.S. tax cut "will continue to be a positive factor going forward," said Yasushi Matsui, a Denso executive director.