Troubled Akebono Brake to Fall into Net Loss in FY 2018
Tokyo, Feb. 12 (Jiji Press)--Struggling Japanese auto parts maker Akebono Brake Industry Co. <7238> said Tuesday that it now expects to report a consolidated net loss of 19.2 billion yen for fiscal 2018, which ends in March, against the earlier estimated net profit of 2 billion yen.
The downward revision came as the company booked an impairment loss of 13.5 billion yen on fixed assets due to its poor business performance in North America.
For April-December 2018, the firm incurred a group net loss of 17,748 million yen, compared with the year-before net profit of 2,259 million yen. As of the end of December, Akebono Brake had 5 billion yen in negative equity capital.
The latest earnings report includes a note that substantial doubts may arise about the firm's continuation as a going concern.
Akebono Brake has faced a drop in orders after a client U.S. automaker conducted a changeover in its mainstay vehicle model.
[Copyright The Jiji Press, Ltd.]