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Takata posts third annual loss in past 4 years on recall costs

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Embattled Japanese auto parts maker Takata Corp reported on Wednesday a full-year net loss of 13.1 billion yen (S$164.9 million), dragged down by an increase in costs for recalls of its potentially deadly airbag inflators.

[TOKYO] Embattled Japanese auto parts maker Takata Corp reported on Wednesday a full-year net loss of 13.1 billion yen (S$164.9 million), dragged down by an increase in costs for recalls of its potentially deadly airbag inflators.

The loss for the year ended in March, in line with estimates given earlier this week, was its third in the past four financial years.

For the current year, Takata forecast a net profit of 13 billion yen although the company will be grappling with a huge recall expansion.

US transport authorities last week announced a recall of up to 40 million more of the company's air bags, on top of the more than 50 million that have already been recalled globally.

REUTERS