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Takata’s Profits Fall 33%
Beleaguered airbag maker Takata Corp. reports its net income in April-June sagged to 2.1 billion yen ($20 million) from 3.1 billion yen in the same period last year.
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Beleaguered airbag maker Takata Corp. reports its net income in April-June sagged to 2.1 billion yen ($20 million) from 3.1 billion yen in the same period last year.
The company says it booked a charge of 3.5 billion yen ($35 million) against lawsuits filed over its exploding airbag inflators. The devices have been blamed for at least 13 deaths and more than 130 injuries to date, sparking recalls by 16 carmakers of roughly 100 million vehicles worldwide.
Takata affirms its guidance of a 13 billion-yen ($128 million) profit in the fiscal year ending next March 31. The forecast assumes 14 billion yen ($138 million) in recall-related costs.
Takata continues to seek a financial backer, emphasizing its ability to continue as a restructured airbag maker. But the company still cannot estimate the impact of recall costs on its future.
A report issued last month by Germany’s Fraunhofer Institute into the cause of the inflator failures should enable Takata to begin talks with its automotive customers about paying for a portion of their recall costs, which have been estimated at 1.3 trillion yen ($12.8 billion). The analysis does not affix blame for the defective devices.
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