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Takata Expects $235 Million Loss on Airbag Recalls
Takata Corp. says it will probably incur a record net loss of 24 billion yen ($235 million) in the current fiscal year because of costs associated with recalls of faulty airbag inflators.
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Takata Corp. says it will probably incur a record net loss of 24 billion yen ($235 million) in the current fiscal year because of costs associated with recalls of faulty airbag inflators.
The company previously expected to post a 16 million-yen ($156 million) profit in the year ending next March 31. Takata booked a 45 billion-yen ($440 million) charge in April-June toward the recall cost.
Six carmakers are recalling an estimated 6.5 million vehicles this year to replace the defective inflators, which could explode and spray metal fragments into the passenger compartment. Ten car companies have called back some 10.5 million vehicles worldwide over the past five years to fix the same problem.
The company's stock price has dropped about one-third this year because of the company's widening woes.
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