Takata Issues Newer, Wider Annual Loss Forecast For FY 2014
The hits keep coming for Takata as its airbag debacle moves forward, this time with announcement that its annual loss forecast will grow wider than previously stated.
Automotive News reports the new forecast calls for a loss of ¥25 billion ($218 million USD) during FY 2014, a ¥1 billion ($8.7 million) difference compared to the forecast made in August; both figures are record losses for the automotive supplier.
Additionally, Takata will skip a dividend this year, the first time in eight years it has done so. The company took a ¥45 billion ($390 million) charge in Q1 2014 as a result of the airbag recalls, and has said future charges would be limited.
CFO Yoichiro Nomura apologized before the Tokyo Stock Exchange, saying his company hadn’t meant to worry its customers, automakers and investors who were all affected by its products. Takata shares declined 1.4 percent in trading, falling from ¥1,579 ($13.69) to ¥1,527 ($13.23) by the closing bell Thursday afternoon.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
More by Cameron Aubernon
Comments
Join the conversation
"his company hadn’t meant to worry its customers" True enough. Takata only meant to perpetuate blissful ignorance. That doesn't disturb "the Wa". They're still golden by Confucian standards. It's the effing gaijin that will blow this all out of proportion. Stupid long-noses.
They knew they had a problem 10 years ago and covered it up. They researched it again five years ago and covered it up. But hey, this is clearly just a witch hunt. Pieces of hot metal and plastic shrapnel blowing into your neck and face during an airbag deployment is something you should be able to anticipate. I'm an awesome driver - and if my airbag went off, I'd use my mad Neo Matrix skills to move around missing those pieces of flying debris moving around in my car. Because I'm awesome like that.