Air bag maker Takata raises full-year profit forecast

Fri Nov 4, 2016 2:32am EDT
 
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TOKYO (Reuters) - Japanese air bag maker Takata Corp (7312.T: Quote) raised on Friday its forecast for full-year profit as the firm expects the proceeds of asset sales to boost its bottomline even as it struggles with costs related to a massive global recall of its air bags.

Takata expects net profit for the year to March to come in at 20.0 billion yen ($193.87 million) compared with a net loss of 13.1 billion yen a year ago. The new forecast is an improvement from its previous expectations for a net profit of 13.0 billion yen, although this excludes the impact of the recalls.

The auto parts supplier posted a net profit of 18.3 billion yen in the April-September period, reversing a loss during the same period last year. Higher earnings in the United States and Asia were curbed by the impact of a stronger yen.

The company is seeking a financial investor to help pay for huge liabilities from the world's biggest auto recall, with defective air bag inflators linked to at least 16 deaths globally.

(Reporting by Naomi Tajitsu; Editing by Muralikumar Anantharaman)

 
A logo of Takata Corp is seen with its display as people are reflected in a window at a showroom for vehicles in Tokyo, November 6, 2015. REUTERS/Toru Hanai/File Photo