Takata Posts Third Full-Year Loss
Takata reported its third full-year loss in four years as it grapples with the rising costs of recalling airbags.
The Japanese airbag maker announced a net loss of 13.1 billion yen ($120.5 million) for its financial year ending in March.
Takata has been hit by a huge recall of faulty, potentially deadly, airbags used by car makers worldwide, which may affect more than 100 million vehicles.
The fault has been linked to the loss of 11 lives and more than 100 injuries.
The company has acknowledged some airbag inflators explode with too much force and spray metal shrapnel into the car.
Takata has paid out $70 million in fines so far and the company’s market value has dropped more than 80% since 2014.
Some 50 million vehicles have been recalled globally and last week, US authorities added up to 40 million more.
US regulators believe the volatile chemical used in the inflators, ammonium nitrate, can cause airbags to explode with excessive force.
Globally, 12 car makers are affected with Honda being the worst hit.
Toyota, Honda, Mazda and Ford have said they will stop using Takata airbags containing ammonium nitrate for their future models.
Takata also produces seatbelts, child seats, and other safety-related car parts.
For the current year, the company forecast a net profit of 13 billion yen.
Takata shares ended on May 11 2.5% higher, after losing 11% this week and more than 80% over the year.