Japan's embattled Takata Corp. logs 3rd straight annual loss

Japan's Takata Corporation on Wednesday reported a full-year group net loss of 79.59 billion yen (698.80 million U.S. dollars), marking its third consecutive year of red ink as it struggles with costs related to a slew of recalls of potentially faulty airbag inflators.

The company, which is looking for a backer to underwrite its recall-linked liabilities, booked a special loss of 132.98 billion yen owing to costs connected to a global recall, it said.

The global recall, the biggest-ever faced by the auto industry, follows a number of fatal airbag inflator ruptures, which saw the auto parts maker in February plead guilty to a U.S. felony charge related to the recalls.

The settlement of around 1 billion U.S. dollars includes compensation for the victims of the faulty airbag inflators, the recall costs of which have also been shouldered by Takata's clients including automakers such as Honda Motor Co., Volkswagen AG and Toyota Motor Corp.

The recalls began in 2008 and are expected to cost the embattled maker in the region of 10 billion U.S. dollars, according to industry sources familiar with the matter.

In fiscal 2016, Takata's operating profit dropped 7.5 percent to 38.96 billion yen, on sales of 662.53 billion yen, down 7.7 percent, it said.

It is currently forecasting a group net profit of 9 billion yen for the fiscal year ending March 2018.

"We want to solve problems as soon as possible to prevent corporate value from deteriorating further and to stop staff from leaving," Yoichiro Nomura, Takata's chief financial officer, was quoted as saying at a press conference. Enditem