TOKYO -- Takata Corp. posted a one-third drop in quarterly profit after booking a special loss of 3.5 billion yen ($34.63 million) for U.S. lawsuits related to the massive global recall of its airbags.
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 today.
The Japanese supplier maintained its full-year forecast to post a net profit of 13.0 billion yen, excluding the impact of most recalls.
The profit drop underscores the difficulties Takata faces as it courts potential saviors. Challenges include dispelling uncertainties surrounding its future, as it has yet to compensate automakers for the bulk of repair costs and faces a litany of consumer litigation and regulatory scrutiny.
Takata reiterated its belief that there is no material uncertainty about its ability to continue as a going concern but said it cannot estimate the costs of responding to its airbag woes.
Airbag inflators made by Takata have deployed too forcefully and ruptured, spraying plastic and metal at vehicle occupants. As many as 15 deaths, including 10 in the U.S., have been linked to the malfunctioning devices, which may eventually force auto manufacturers led by Honda Motor to recall more than 100 million airbags globally.
Scientists at the Fraunhofer Institute in Germany have been investigating the root cause of the ruptures. Takata received a report by Fraunhofer in July, which doesn’t specify whether responsibility rests with the supplier or carmakers, according to spokeswoman Akiko Watanabe.
Takata has enlisted a subcommittee to find a financial backer to help it overhaul its businesses and manage ballooning costs related to the global auto industry's biggest product recall and its related liabilities.
A third-party panel appointed by the parts maker plans to make restructuring proposals and announce their recommendations in September or October.
Both parts manufacturers and buyout firms are expressing interest in Takata's business. Key Safety Systems, the world’s fourth-largest airbag maker that was recently acquired by a Chinese parts supplier, is said to plan a bid for Takata, while buyout firms including Bain Capital, PAG Asia Capital and KKR & Co. have expressed interest, Bloomberg News has reported.
Takata’s efforts to restructure and secure potential buyers could be complicated by findings of pervasive data manipulation and misrepresentations to automakers. An ongoing audit commissioned jointly by Takata and Honda has found the supplier routinely manipulated results of airbag inflator tests reported to the carmaker.
CEO Shigehisa Takada, the company's third-generation leader, has said he would resign once the company comes under new management.
Bloomberg contributed to this report