Scandal-Hit KYB Braces for 1st Annual Loss in 3 Years
Tokyo, Nov. 6 (Jiji Press)--Scandal-hit KYB Corp. <7242> on Tuesday projected its first consolidated net loss in three years in fiscal 2018, lowering its bottom-line forecast to a loss of 2.3 billion yen from 16 billion yen in profit.
The downward revision for the year through March 2019 is due chiefly to the costs of replacing earthquake-mitigating oil dampers affected by the group's data manipulation scandal.
For April-September, KYB booked 14.4 billion yen in reserves mainly for product replacement.
At present, KYB expects that more than 10,000 dampers need to be replaced. But the company remains unable to fix the total costs for replacement and compensation to those affected.
The company's loss is therefore likely to expand further.
[Copyright The Jiji Press, Ltd.]