Takata posts profit gains despite the massive airbag scandal image

The Japanese automotive supplier reported an increase of its quarterly profits, despite the airbag scandal developing and expanding almost on weekly basis.

Despite the ongoing, massive global safety crisis caused by its defective airbag inflators, Takata boosted its revenue during the last three financial quarters. The company’s net income rose to 8.1 billion yen (69 million dollars) in the quarter ending in December from 2.8 billion yen a year earlier, while revenue for the quarter climbed to 184.1 billion yen from 167.9 billion yen. The increase was pushed by strong sales in the US and Asia, the Japanese supplier said in its report on Friday. The revenue for the recent three quarters totaled 543.4 billion yen, up 15.7 percent, with a 37.7 percent rise for the operating income to 32.2 billion yen from a year earlier. Takata did not change its net profit forecast for the full financial year ending March 31, keeping it to 5 billion yen (42.81 million dollars), after posting a net profit of 2.52 billion yen for the first three quarters. However, the company said it did not take into consideration the most recent massive recalls that could cause a significantly boost of costs.

These positive results come out immediately after Honda announced last week that Takata’s faulty inflators forced the automaker to expand its recall campaign in North America, by adding 2.23 million more vehicles. Furthermore, Honda said on Friday it was recalling another 443,000 vehicles including its Fit compact cars in Japan over the same potentially faulty airbags. As the pressure on the Japanese automotive supplier is over the edge, Takata plans to make a move to ease up some of it by preparing a restructuring program and bringing it in front of carmakers, a plan that also includes a proposal of sharing the recall costs, people familiar with the matter told Bloomberg.

Via Bloomberg