News

Takata Reports $562M Net Loss in 2016

Order Reprints

Feb. 10, 2017—Takata Corp., the troubled airbag manufacturer that’s been the center of several recent recalls, reported it will likely report a third consecutive annual loss.

This announcement comes on the heels of reaching a settlement with the U.S. Department of Justice over Takata's scheme spanning years to conceal the deadly defect in its air bag inflators, which can explode with too much force, sending shrapnel spewing.

The net loss will be around $562 million in the year through March, compared with a November forecast for a $176 million profit, Takata said in a statement on Friday. The loss would be the widest since listing in 2006. The supplier posted a net loss of $115.4 million one year earlier.

The company has admitted to hiding risks in air bags that have been linked to at least 17 deaths worldwide. It has agreed to pay U.S. regulators, consumers and car manufacturers $1 billion in penalties.

The Japanese component maker is still in the process of selecting a sponsor, Takata said in the statement. The company is considering selling some more non-core businesses, cutting capital expenditure and producing in low-cost countries, it said.

Recommended Products

2016 Ratchet+Wrench Shop Performance Survey: Complete Report

2016 Ratchet+Wrench Shop Technology Survey: Complete Report

2017 Ratchet+Wrench Shop Technology Survey: Complete Report

Related Articles

Ford Gets Initial OK on $300M Deal to Exit Takata Litigation

Mazda Recalls 270K Vehicles with Takata Air Bags

Takata Air Bag Recall Expands by 3.3M Vehicles

You must login or register in order to post a comment.