Japan’s Takata warns of annual net loss as recall costs mount

A sign with the Takata logo is seen outside the Takata Corporation building in Auburn Hills, Michigan, U.S. May 20, 2015. REUTERS/Rebecca Cook/File Photo

Japan’s Takata Corp (7312.T) warned it would post an annual net loss of 13 billion yen ($120 million) for the past financial year, revising its previous estimate for a 5 billion yen profit as costs mount due to a massive global recall of its air bag inflators.

The company also cut its estimates for full-year revenue and recurring profit, although it raised its operating profit estimate by 5 percent to 42 billion yen.

Takata’s recall woes continue to expand after U.S. transport authorities last week announced an additional recall that would affect up to 40 million more air bags manufactured by the company.