Scandal-Hit KYB to Log 10-B.-Yen Net Loss for April-Sept.

Economy

Tokyo, Nov. 5 (Jiji Press)--KYB Corp. <7242> is set to report a group net loss of 10 billion yen for April-September, due to swelling costs to replace earthquake shock absorbers for which performance data were falsified, informed sources said Monday.

The net loss projection by the Tokyo-based hydraulic damper maker will be made public on Tuesday along with the replacement costs totaling around 15 billion yen and other earnings data for the first half of fiscal 2018, the sources said. Initially, the company estimated 7.2 billion yen in net profit for the period.

KYB may incur further losses because it has not taken into account its possible payment of compensation to users of products in question for business halts to be caused by the replacement work, the sources said.

Nearly 11,000 substandard dampers are used or believed to be used at 980 buildings across the country.

The company plans to replace all but products confirmed to have nothing to do with the misconduct, the sources said, adding that production of placement dampers will be completed by September 2020.

[Copyright The Jiji Press, Ltd.]

Jiji Press