GUELPH, Ont. — Canadian auto supplier Linamar Corp. posted a quarterly net loss of $37.9 million and saw its sales slashed by more than half amid the COVID-19 pandemic.
The company based in Guelph, Ont., says sales for the three months ended June 30 totalled $923.6 million — down from roughly $2.086 billion in the same time the previous year.
It says second-quarter sales in its industrial segment fell 56.7 per cent and in its transportation segment 55.3 per cent partly due to adverse conditions associated with the pandemic.
The manufacturer says its net loss of $37.9 million — or 58 cents per diluted share — compared to a net profit of $150.2 million or $2.28 per share in the same quarter of 2019.
Linamar says its normalized net loss totalled $22 million or 34 cents per share for the quarter, down from a net profit of $158.3 million or $2.40 a share.
Analysts expected a net loss of $72.45 million or $1.34 per share, and a normalized net loss of $23 million or 80 cents per share, according to financial markets data firm Refinitiv.
The parts maker kept a tight lid on costs in an effort to weather the demand fallout from the COVID-19 pandemic.
The company, which supplies to General Motors, also pointed to a strengthening return in volumes as automotive production in North America and Europe restarted in May.
“We are through the toughest part and now laser-focused on restarting... and recovering,” CEO Linda Hasenfratz said.
Still, a resurgence in new coronavirus cases in southern and southwestern U.S. states has cast a shadow over the prospect of a quick recovery in the automotive market.
The company said it cut capital expenditure by 81 per cent to $24 million in the second quarter and had $1.1 billion in cash and cash equivalents and available credit at the end of June 30.
The Canadian Press and Reuters contributed to this report.