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.
The post Takata Issues Newer, Wider Annual Loss Forecast For FY 2014 appeared first on The Truth About Cars.
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