Beset by a massive recall scandal Takata cut its outlook for the full year, but shares bounced on Friday, suggesting that investors believe Japan's biggest airbag maker will survive the crisis.
"Takata's operating profit remains solid," said Advanced Research auto analyst Koji Endo. "Even if recall-related costs continue to rise, it is unlikely to go bankrupt."
Takata logged a special loss of 32.5 billion yen ($277 million) in the nine months to the end of December 2014, after taking a special charge of 53.1 billion to cover the cost of the recalls. It also warned that its full-year loss will be 31 billion yen, larger than the previously forecast 25 billion, but in line with analysts' forecasts.
However, operating profit grew 8.9 percent on year to 23.4 billion yen, thanks to a weaker yen and stronger performance in all its major markets except Europe. Sales rose 15.6 percent to 469.9 billion yen.
"The core business remained firm, there were no major changes in the recall situation, which investors are focusing most closely on and which remains ongoing," said Credit Suisse analyst Masahiro Akita in a note.
Shares rose 4 percent on Friday but are down 52 percent from a year ago.