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Air bag maker Takata's loss warning

Thursday, November 06, 2014 - 01:41

Takata Corp, whose potentially defective air bags have been linked to four deaths in the U.S. states, has warned of a bigger full-year loss and skipped its dividend. As Tara Joseph reports the Japanese automotive safety equipment maker has been beset by chronic problems with defective inflators in its air bags.

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Under pressure - with losses mounting - Takata air bag executives on Thursday make a sombre bow - a desperate plea for forgiveness. (SOUNDBITE/ENGLISH TRANSLATION) (Japanese) EXECUTIVE VICE PRESIDENT OF TAKATA CORPORATION, YOICHIRO NOMURA, SAYING: "We deeply apologize from the bottom of our heart for all the angst and worry caused. We are in the red for this term. We are extremely sorry." Takata also forecasting the monetary pain it now faces , forecasting an annual loss of 219 million dollars. The company has a major image problem. Now known across the globe as the company that produces faulty goods - requiring massive carmaker recalls due to safety concerns. But the company is seeking to salvage its brand saying it has not heard of any orders being cancelled for the second half of the year. Reuters Mari Saito was at the press conference in Tokyo: (SOUNDBITE) (English): MARI SAITO, REUTERS REPORTER IN TOKYO, SAYING: "The company does seem very apologetic, although reporters were asking the executive during the press conference and after, when is the chief executive going to hold a press conference and explain this fully to consumers? That's something that hasn't happened yet." Takata dominates the global air bag deflator market with a near quarter share - Even if shunned as a supplier it take would likely take several years for that to shrink substantially given the 2-3 year product cycle for car manufacturers. Competitors are trying to step in as fast as they can - Japan's Daicel today pushed up its profits forecast by nearly 15 - percent. Its shares have soared 25 percent in the past two weeks on hopes it can win business away from its rival Takata.

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Air bag maker Takata's loss warning

Thursday, November 06, 2014 - 01:41