Takata holds a significant portion of the global market for airbags. But the recall that for months now has been affecting the automakers that have installed Takata’s products is devastating the company’s bottom line.
The net loss will probably be 31 billion yen ($US264 million) in the year ending March, the Tokyo-based company said today. In November, Takata had widened its loss forecast to 25 billion yen and said that it’s difficult to estimate the amount of damage claims it has received in the U.S.
Takata lost roughly four times as much money in 2014 as it did in 2013, due largely to the massive recall, which has impacted millions of autos sold over more than a decade.
However, as Jie and Horie note, Takata is still booking operating profits — up 9% in the company’s most recent fiscal year — as demand for replacement airbag components rises in the US, an inevitable consequence of such as massive recall.
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