Struggling air bag maker Takata Corp. reported Wednesday a group net loss of ¥79.59 billion ($698.88 million) for the business year that ended March 31 — its third straight year in the red — against a backdrop of recall-related costs.
The auto parts maker booked a special loss of ¥132.98 billion due mainly to extra costs related to a global recall following a spate of fatal air bag inflator ruptures, making its net loss much bigger than the previous year's loss of ¥13.08 billion. In fiscal 2016, the Tokyo-based company's operating profit fell 7.5 percent to ¥38.96 billion, on sales of ¥662.53 billion, down 7.7 percent.
The air bag manufacturer is projecting a group net profit of ¥9 billion for the fiscal year ending March 2018.
Takata pleaded guilty earlier this year to criminal wrongdoing and agreed to a $1 billion settlement, of which $850 million has yet to be paid.
"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, said at a news conference.
The earnings figures were released as Takata is making final arrangements to hammer out a restructuring plan.
Creditor banks and automakers are considering plans for Takata to spin off its profitable operations, such as its seat belt and child-seat businesses, into a separate company, a source close to the matter said.
Chinese-owned auto parts manufacturer Key Safety Systems Inc. is eager to invest in the newly created firm, the source added.
Nomura declined to comment on when Takata will finalize its rehabilitation plan, saying only that the company is "in negotiations" with other entities such as sponsors.