Takata Reports $562M Net Loss in 2016
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.