TOKYO (dpa) – Japan’s Takata Corp on Thursday expanded its net loss outlook for the current financial year amid growing costs to deal with the global recall of its defective airbags.
Takata now estimates a group net loss of 31 billion yen (264.5 million dollars) for the year to March, compared with a 25-billion-yen loss projected in November.
More than 21 million vehicles have been recalled worldwide to repair Takata’s defective airbags. A malfunctioning inflator in the airbag may have caused some to rupture and spray metal fragments at drivers and passengers.
The Japanese supplier maintained its operating profit forecast for the year at 28 billion yen while revising up its sales outlook to 620 billion yen from 600 billion yen estimated three months ago.
For the October-to-December period, Takata posted a net profit of 2.8 billion yen, down 65.6 per cent from the same period in 2013 while its operating profit grew 4.5 per cent to 8.6 billion yen. Sales rose 17.1 per cent to 167.9 billion yen.