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Takata Profit Drops 33% as Air-Bag Maker Plans Restructuring

  • Full-year profit forecast maintained at 13 billion yen
  • Company books 3.5 billion yen charge on air bag lawsuits

Takata Profit Drops 33% to $20.5M

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Takata Corp., the air-bag maker behind the biggest automotive recall, said quarterly profit plunged by a third as the supplier drafted restructuring plans in the face of billions of dollars in potential costs related to its defective safety products.

Net income fell to 2.07 billion yen ($20.5 million) in the quarter ended in June, from 3.1 billion yen a year earlier, Takata said in a statement Friday. The company booked a 3.5 billion yen charge in the period related to air-bag lawsuits.