Denso Corp, the world'slargest listed auto parts supplier, on Friday cut its first halfnet profit forecast by a fifth due to losses on the sale of bondsissued by U.S. financial institutions.



Denso, a core supplier of the Toyota Motor Corp group, kept its operating profit and sales forecasts unchanged.



The company, a top maker of electronics and other auto partsrivalling Germany's unlisted Robert Bosch , said itwould book a special loss of 20.6 billion yen ($194 million) inthe first half to Sept. 30 on the bonds.



'We considered that it would be difficult for theseinvestment securities to recover for a short-term period underthe current market environment,' Koji Kobayashi, senior managingdirector at Denso, said in a statement.



Denso now expects to post a first-half net profit of 61billion yen instead of its prior forecast of 76 billion yen. Itkept its sales and operating profit estimates unchanged at 1.92trillion yen and 113 billion yen.



The company said it was still calculating how the loss mightaffect its full-year estimates.



Denso spokeswoman Miwa Kurokawa said the company has nowdisposed of all bonds at risk of not being recoverable.