Toyota supplier Denso posts 48% rise in Q1 profit

TOKYO (Reuters) - Japan's Denso, a leading supplier to Toyota, posted a 48% rise in first quarter profit on Friday and raised its full-year outlook, citing a weaker yen and strong sales.

The major manufacturer of automotive parts and chips said operating profit totalled 94.38 billion yen ($678 million) in the three months to end-June, versus 63.6 billion yen a year earlier.

That came short of the average of 145.78 billion yen in a poll of 10 analysts. Denso also raised its full-year outlook, saying it now expects profit to total 600 billion yen, from 510 billion yen previously.

Denso counts Toyota Chairman Akio Toyoda as a board member, testifying to its close ties with the world's largest automaker by sales. About half of Denso's revenue comes from the Toyota group, which also includes Toyota truck unit Hino Motors and small-car maker Daihatsu.

It makes systems for running gasoline engines and driving hybrid and battery-powered vehicles. Its shares, which have risen about 45% this year, were down some 2.6% by the close of morning trade on Friday.

($1 = 133.5300 yen)

(Reporting by Daniel Leussink; Editing by David Dolan)