Takata to book $440 million special loss for wave of recalls
TOKYO (Reuters) -- Takata Corp. will book a special loss of around 45 billion yen ($440 million) in the April-June quarter after several carmakers recalled vehicles due to potential problems with the supplier's airbags.
Honda Motor Co., Toyota Motor Corp., BMW AG and other automakers have recalled millions of vehicles to fix Takata-made airbags that could explode and shoot out shrapnel.
The cost of the latest recalls, announced in June and July, could increase if a U.S safety investigation finds evidence that driving in high humidity increases the risk of the airbags exploding, or if automakers decide to expand the recalls beyond certain U.S. regions.
Takata said it is still studying the impact of the special loss on its full-year financial forecast. The company currently expects to post 16 billion yen in net profit for the year ending in March 2015.
In the year to March 2013, Takata took a $300 million charge and posted a record 21.1 billion yen net loss after automakers recalled 4 million vehicles worldwide over passenger-side airbags.
Takata shares ended down 2.2 percent at 1,916 yen prior to the announcement, underperforming Tokyo's benchmark Nikkei average that fell 1.0 percent. Takata shares have dropped nearly 15 percent over the last month, after automakers started to announce the most recent round of recalls.
More than 12 million vehicles have been recalled over the last five years by multiple automakers due to potential problems with Takata airbags.Contact Automotive News