TORONTO — Martinrea International Inc. swung to a large loss in its recent quarter as automotive plant closures during the COVID-19 pandemic took a big bite out of its revenues.
The autoparts manufacturer says it lost $146.9 million or $1.84 per share in the second quarter, compared with net income of $28.1 million or 34 cents per share a year earlier.
The adjusted loss was $73.1 million or 91 cents per share, down from an adjusted profit of $54.6 million or 66 cents per share in the second quarter of 2019.
Revenues for the three months ended June 30 plunged 51.4 per cent to $460.6 million from $948.5 million in the prior year.
Martinrea was expected to report an adjusted loss of 74 cents per share on $420.8 million of revenues, according to financial markets data firm Refinitiv.
The company says it expects a strong third quarter as automakers replenish low vehicle inventories, with sales of $850 million to $950 million and adjusted earnings of 40 to 50 cents per share, including the newly acquired Metalsa, that will continue to be a drag on earnings for the rest of the year.
“Our third quarter will not reach the record earnings levels of 2019, but we expect it will be one of the best third quarters in the history of the company, and that’s great news,” stated CEO stated Pat D’Eramo.
“We believe that our industry hit its low point in the second quarter, and looking forward, we see a steady, gradual recovery. We expect that the second half of 2020 will be much better than the first half, and, while the rate of growth is still somewhat unclear, we expect growth in 2021 from this year’s levels and further growth in 2022 and beyond,” added executive chairman Rob Wildeboer.
This report by The Canadian Press was first published Aug. 10, 2020.
Companies in this story: (TSX:MRE)
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