August 25, 2017 / 4:06 AM / in 7 months

Japan automaker Subaru to book $741.5 million special loss over Takata recall

TOKYO (Reuters) - Subaru Corp on Friday said it would book a special loss of 81.3 billion yen ($741.45 million) in the first half as it expects increased expenses related to the global recall of airbag inflators made by Takata Corp after the air bag maker filed for bankruptcy in June.

FILE PHOTO: A Subaru insignia is seen on a car In Warsaw, Poland June 1, 2017. REUTERS/Kacper Pempel/File Photo

As a result, the Japanese automaker said it expected full-year net profit to come in at 228.5 billion yen (1.6 billion pounds), down from a previous forecast for 285 billion yen and lower than last year’s 282.35 billion yen.

In May, Subaru said that as of March, it had accrued expenses of around 73.5 billion yen related to the recall of Takata inflators, but later said the bankruptcy filing by the auto parts maker would create uncertainty over whether it could claim compensation from Takata to recoup these costs.

Reporting by Naomi Tajitsu

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