Tokyo: Takata Corporation, the Japanese company at the centre of a massive global air bag recall, is sticking to its forecast of posting a 13 billion yen ($129 million) profit for the fiscal year through March.
It yesterday reported an April-June profit of 2bn yen ($19.8m), down 33 per cent from the same period the previous year, as quarterly sales slipped 7pc to 169bn yen.
Tokyo-based Takata, which had two straight years of losses over the recalls, has said it will return to the black this fiscal year, although some analysts note that recall costs now being shouldered by carmakers will be billed to Takata.
Takata also faces class-action lawsuits over its defective air bag inflators that can explode with too much force, sending shrapnel spewing.
Faulty air bags are responsible for 11 deaths and more than 100 injuries worldwide. Two more deaths are under investigation in Malaysia. The recalls are likely to tally more than 100m inflators globally.
Takata has said it is seeking new investment as it reshapes its inflator operations and works to fix the problems.
Takata, which also makes seat belts and child seats, said sales were still holding up and it still had enough cash, although things could change depending on how expenses related to the recalls develop.
A recent study by Kelley Blue Book found consumer awareness about the Takata recalls low, at about half of the respondents in the US, although it’s the largest recall in US history affecting one in every eight vehicles on US roads.
Karl Brauer, senior analyst for Kelley Blue Book, called it “another unfortunate case of people thinking it won’t happen to me.”