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Takata, the Japanese automotive supplier at the centre of a global recall crisis over exploding airbags, has warned of bigger losses ahead.
For the fiscal year through March 2017, the company anticipates a net loss of ¥64bn ($562m) versus its earlier forecast of a profit of ¥20bn after Takata agreed in mid-January to plead guilty and pay a $1bn criminal penalty in the US for fraud.
In addition to the fine, Takata also booked a charge of ¥10.6bn for the estimated $10bn-plug bill to replace potentially defective airbags, which is currently being shouldered by more than 10 carmakers including Honda, Toyota and Volkswagen.
The loss warning is expected to increase pressure on the Japanese group to speed up its search for an outside investor to help it survive the safety scandal.
Earlier this month, Takata said a committee of outside experts, commissioned by the company, has recommended Key Safety Systems, a US airbag manufacturer owned by China’s Ningbo Joyson Electronic, as the preferred financial sponsor.
People close to the talks have said KSS was among several bidders for Takata that preferred a court-led restructuring to minimise their exposure to the company’s liabilities.
In a statement on Friday, the company said it was continuing negotiations with carmakers for the investor search. Takata has argued for an out-of-court restructuring agreement with carmakers to avert bankruptcy and supply disruption.
Takata booked a net loss of ¥67.1bn versus a year-earlier profit of ¥2.5bn for the nine months through December, while revenue fell 9.5 per cent to ¥491.6bn.