Takata forecasts 13b yen loss from charges on recalls and consumer settlements

Tokyo

TAKATA Corp is struggling to get ahead of its airbag recall crisis, with the latest full-year financial forecasts failing to take into account the US regulator ordering a near-doubling in number of devices to be replaced.

The embattled Japanese supplier chalked up its latest forecast - for a 13 billion yen (S$163.1 million) annual loss for the year ended in March - to charges it's booking for recall costs and settlements with consumers injured by its rupture-prone airbags. Those 20.1 billion yen in provisions were announced days before a US regulator's order that may add 35 million to 40 million devices to the recall list.