Japanese air bag maker Takata Corp <7312.T> raised on Friday its forecast for full-year profit as the firm expects the proceeds of asset sales to boost its bottomline even as it struggles with costs related to a massive global recall of its air bags.
Continue Reading Below
Takata expects net profit for the year to March to come in at 20.0 billion yen ($193.87 million) compared with a net loss of 13.1 billion yen a year ago. The new forecast is an improvement from its previous expectations for a net profit of 13.0 billion yen, although this excludes the impact of the recalls.
The auto parts supplier posted a net profit of 18.3 billion yen in the April-September period, reversing a loss during the same period last year. Higher earnings in the United States and Asia were curbed by the impact of a stronger yen.
The company is seeking a financial investor to help pay for huge liabilities from the world's biggest auto recall, with defective air bag inflators linked to at least 16 deaths globally.
(Reporting by Naomi Tajitsu; Editing by Muralikumar Anantharaman)