Takata expects worse red ink after reporting quarterly loss due to global air-bag recall woes

MarketsAssociated Press

Takata Corp., the Japanese seatbelt and air-bag maker at the center of a defect scandal, is expecting more red ink for the fiscal year through March.

It is projecting a 31 billion yen ($264 million) loss, worse than the previous forecast for a 25 billion yen ($214 million) loss, despite higher sales expected for the fiscal year.

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Tokyo-based Takata also reported a fiscal third quarter loss of 32.5 billion yen ($278 million), a reversal from 8.8 billion yen profit a year earlier.

Quarterly sales rose 16 percent year-on-year to 469.9 billion yen ($4 billion).

Takata is under fire for air bag inflators that can explode, shooting out metal and plastic pieces. At least five deaths and dozens of injuries have been linked to the problem worldwide.