TOKYO – Takata Corp. is expecting a loss instead of a profit for the fiscal year ended in March because of ballooning costs from a massive air-bag recall.
Tokyo-based Takata said Monday its annual net loss will total 13 billion yen ($120 million). The Japanese air-bag and seatbelt manufacturer had earlier projected a profit of 5 billion yen ($46 million). The company is scheduled to give its earnings report Wednesday.
The U.S. National Highway Traffic Safety Administration said last week that it's adding up to 40 million Takata air bags to the ongoing recall of 28.8 million air bags.
Inflators inside the air bags can explode with too much force and spew shrapnel into the vehicle. The inflators are responsible for at least 11 deaths worldwide and more than 100 injuries.