February 11, 2017
Tokyo - Struggling air bag maker Takata Corp. said Friday it expects to post a group net loss of 64 billion yen for the year ending next month, the largest annual loss since its stock listing on the Tokyo Stock Exchange’s first section in 2006.
The dismal outlook comes as the Japanese company last month agreed to pay one billion dollars in fines to settle a US Justice Department investigation into its handling of rupture-prone air bags.
Takata thus expects to post a third consecutive year of net loss. It previously projected a net profit of 20 billion yen.
The US settlement forced the company to book 96.9 billion yen in special loss for the first nine months of the year.
As a result, Takata swung to a net loss of 67,125 million yen in the nine-month period from a profit of 2,519 million yen a year before.
A panel of experts commissioned by the company recently recommended Chinese-owned US auto parts supplier Key Safety Systems Inc. as its favored candidate to sponsor Takata’s turnaround efforts.
Key Safety Systems is considering bankruptcy protection to bail out Takata, sources familiar with the situation said. But Takata aims to restructure its debts through an out-of-court settlement with automakers, the sources said.
More than 100 million Takata air bags are being recalled globally, with total costs expected to exceed one trillion yen. In Japan , the United States and Canada alone, the figure totals 84.7 million units, Takata said. (Jiji Press)
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