Takata expects bigger annual loss due to airbag recall

Takata logo Image copyright AFP
Image caption Losses over potentially deadly airbags mount for Japanese firm Takata

Japanese airbag maker Takata now expects its annual net loss to be 24% higher than it had previously forecast as charges for vehicle recalls jump.

The company said it paid nearly $30m (£19.7m) in extra charges for vehicle recalls to replace potentially deadly airbag inflators that it produces.

That pushes it towards an annual loss of 31bn yen ($264m; £173m), from a previous forecast of $25bn yen.

Its airbags have led to the recall of 25 million cars globally since 2008.

It has also been linked to six deaths in connection with vehicles made by its biggest customer, carmaker Honda.

Takata is under criminal investigation in the US.

The company said on Thursday that it had a net loss of 32.5bn yen in the nine months to December.

The firm booked a loss of 53.1bn yen to cover recalls and other quality-related costs in the same time period. It had already seen a loss of 49.4bn yen for the first half of its fiscal year to September.

Takata's earnings announcement was made in a published statement without a news conference, according to Reuters.

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