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Takata Hikes Loss Estimate 24% for Airbag Recalls
Takata Corp. now expects worldwide recalls of its airbag inflators to generate a net loss for the company of 31 billion yen ($261 million) in the fiscal year ending March 31.
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Takata Corp. now expects worldwide recalls of its airbag inflators to generate a net loss for the company of 31 billion yen ($261 million) in the fiscal year ending March 31.
Takata's previous guidance was a loss of 25 billion yen. But the company continues to emphasize it is virtually impossible to predict the eventual cost of the campaigns. Recalls have involved 11 carmakers and some 14 million vehicles in the past two years alone.
Takata reports its operating profit climbed 9% to 23.4 billion yen ($197 million) in April-December, largely because of increasing auto production in the U.S.
But the company's net loss for the period nearly quadrupled to 32.5 billion yen ($274 million). Takata has put aside some 51 billion yen ($429 million) to cover recall costs.
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