Linamar Corp. had a $48.4-million loss in the second quarter as revenue declined by 40 per cent on "significant volume reductions in global vehicle markets," the auto parts company said yesterday.
The Guelph, Ont.-based manufacturer said its loss equalled 75 cents a share for the second quarter. Sales fell 39.6 per cent to $378-million from $625.4-million in the same period a year ago, when the company had a profit of $32-million or 48 cents.
Linamar said it incurred one-time charges of $38.3-million including capital asset impairments related to the bankruptcy filings of Chrysler and General Motors, severance costs and facility amalgamation costs as it cut its operations to save money during a worldwide slump in auto sales.
Without these unusual items, the adjusted net loss for the quarter was $10.1-million or 16 cents a share.
In one bright spot, the company said its North American content per vehicle increased 9.2 per cent. Linamar was also awarded a contract by an unnamed "major European auto manufacturer" in the quarter that will exceed $200-million in annualized volume at full production.
It was also awarded another $250-million in takeover and quick-start contracts in the second quarter.
Broken down by segment, Linamar's powertrain/driveline sales decreased 31.7 per cent to $324.3-million while industrial segment sales were down 64.4-per cent to $53.7-million.
Despite this, the company generated more than $60-million in cash in the quarter through reductions in non-cash working capital.
"We also had a fantastic quarter in terms of new business, both takeover and longer term, lining us up for continued growth in the coming months and year," said Linamar chief executive officer Linda Hasenfratz.
Linamar declared a quarterly dividend of 3 cents a share.
Linamar (LNR)
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