Honda restates earnings after airbag recall costs increase

TOKYO (Reuters) — Honda Motor Co. restated its financial results for the fiscal year ended in March, to account for additional costs to cover an expanded recall of cars equipped with Takata Corp. airbags.

The automaker said today it revised its operating profit to 606.88 billion yen ($4.92 billion) under U.S. accounting standards, from 651.68 billion yen stated in April. The new figure represents a 19 percent decline from the previous year.

Under international accounting standards, which Honda adopted from this year, operating profit was 670.6 billion yen last year, down 19 percent from the previous year, it said, stating results under the new standards for the first time.

Honda earlier this month said it would restate its earnings as it had to book an additional cost of 44.8 billion yen after Takata, its top airbag supplier, agreed to an expanded recall in the United States last month.

Takata is at the center of the recall of millions of vehicles equipped with airbag inflators that can explode with too much force and spray metal fragments inside vehicles.

Regulators have linked eight deaths to the component — all in cars made by Honda.

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