TOKYO — Japan’s Akebono Brake Industry now expects a net loss of 19.2 billion yen ($174 million) for the fiscal year ending in March as the poor U.S. performance necessitated an asset write-down.
The new forecast released Tuesday marks a sharp downgrade from the previous projection of a 2 billion yen profit.
The grim outlook throws the company’s plight into sharp relief. Akebono filed last month for an out-of-court debt resolution process and asked creditors for debt relief. The company’s shareholders’ equity fell to negative 4.9 billion yen as of the end of December.
“We’re not thinking of withdrawing from our U.S. business, but we’ll adjust staffing levels at four plants,” Chief Financial Officer Yoshimasa Ogino told reporters. “We’ll also consider adjustments to nonregular staff at Japanese plants.”
Read more at asia.nikkei.com.