TOKYO -- Denso, the Toyota Group company that is Japan's biggest auto parts supplier, reported a 23 percent decline in operating profit for the latest fiscal year.
Operating profit retreated to 316.2 billion yen ($2.8 billion) in the 12 months ended March 31 amid rising investment costs and market slowdowns in Europe and China, the company said in a statement on Friday. Revenue increased 5 percent to 5.36 trillion yen ($48.3 billion).
Increased outlays for r&d and new production facilities hit financial results in both North America and Japan, where regional operating profit declined, Denso said.
CEO Koji Arima predicted that revenue and operating profit will increase in the current fiscal year ending March 31, 2020, thanks to rising sales of electrification and safety related products.
Denso announced separately April 26 that Akio Toyoda, president of Toyota Motor, will be appointed to its board, pending approval at Denso's annual shareholder meeting.
Toyota Motor is Denso's biggest shareholder with a 24 percent stake.
