Troubled airbag supplier Takata Corporation said it expects to book non-operating income (foreign exchange gain) and special losses (recall costs) in the third quarter of the current fiscal year ending 31 March, 2017.
Having booked a first half JPY5,680m foreign exchange loss as a non-operating expense, exchange rates have now swung in the company’s favour and it made a gain of JPY9,751m in the third quarter, leading to a nine-month boost of JPY4,071m.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
On the other hand it expects losses of JPY10,628m to cover costs incurred for settlements related to recalls of airbags/inflators made by its US subsidiary. JPY7,097m had previously been booked in interim results for the full year.
Takata also expects to record a provision of JPY96,927m as a US Department of Justice (DoJ) settlement amount for payment of a fine and the establishment of a compensation fund totaling US$1bn associated with an agreement reached with the DoJ on 13 January. The JPY96,927m (US$862m) represents the difference between the total amount of the settlement
of US$1,000m minus product warranty provisions already recorded of US$138m.
Takata said it would elaborate once it had fully assessed the effect of the costs.
