Takata to post another annual loss image

The Japanese auto part supplier is getting ready to announce another unsuccessful financial year, as the costs over the airbag crisis have kept mounting up.

Not so long ago, Takata was quite optimistic over the financial year ended in March, as it projected a 5-billion-yen (46.36-million-dollar) profit. However, the airbag crisis has re-gained a massive amplitude over the recent months, alongside any related-costs. Therefore, after it reported a net loss of 29.6 billion yen (274.45 million dollars) a year back, the Japanese supplier expects another loosing year, as the loss will probably total 13 billion yen (121 million dollars), according to a preliminary results filing to the Tokyo stock exchange. The company is due to announce its full financial results on May 11.

Takata said last week it was raising its provision by 16.6 billion yen (156 million dollars) for the year, for the total special losses to rise to 20.1 billion yen (189 million dollars). However, shortly afterwards, it received another blow, as the US National Highway Traffic Safety Administration ordered the carmakers to recall another 35 million to 40 million inflators by December 2019, thus raising the number of affected automakers to 17 and that of the recalled airbags to 69 million.

The recalls level may further increase, as Takata produced between 260 million and 285 million ammonium nitrate-based inflators worldwide between 2000 and 2015, out of which nearly half wound up in US vehicles, one of the former company managers told Reuters last month, citing the firm’s production records.

Via Automotive News