Takata Q1 profit slides after $35m special loss over air bag lawsuits
TOKYO (Reuters) – Embattled Takata Corp posted a one-third drop in first-quarter net profit after booking a special loss of 3.5 billion yen ($34.63 million) for lawsuits in the United States related to the massive global recall of its air bags.
The Japanese auto parts supplier reported a net profit of 2.1 billion yen for April-June, down from 3.1 billion yen in the year-ago period.
It maintained its full-year forecast to post a net profit of 13.0 billion yen, excluding the impact of most recalls.
The company did not hold a briefing after announcing its results.
Once one of the world’s largest air bag suppliers, Takata is at the centre of a massive global recall of its of air bag inflators, which can inflate violently, releasing metal shrapnel into vehicles.
They have been linked to at least 14 deaths and more than 150 injuries globally, mainly in the United States.
The company has enlisted a subcommittee to find a financial backer to help it overhaul its businesses and manage ballooning costs related to the global auto industry’s biggest product recall and its related liabilities.
Chief Executive Shigehisa Takada, the company’s third-generation leader, has said he would resign once the company comes under new management.
(Reporting by Naomi Tajitsu; Editing by Muralikumar Anantharaman)