Auto-parts maker Linamar says GM’s U.S. strike costing $1-million a day; shares drop – The Globe and Mail

Ontario auto-parts maker Linamar Corp. says it is costing as much as $1-million a day in profit as the economic damage mounts from a strike by 49,000 General Motors Co. workers in the United States that is nearing the end of its third week. The U.S. GM employees, members of the United Auto Workers, walked…

Auto-parts maker Linamar says GM’s U.S. strike costing $1-million a day; shares drop – The Globe and Mail

Ontario auto-parts maker Linamar Corp. says it is costing as much as $1-million a day in profit as the economic damage mounts from a strike by 49,000 General Motors Co. workers in the United States that is nearing the end of its third week. The U.S. GM employees, members of the United Auto Workers, walked off the job on Sept. 16, which led to a halt of almost all GM’s auto production in North America, causing thousands of layoffs in Southern Ontario and a plunge in orders at GM suppliers Linamar, Martinrea International Inc., Magna International Inc. and others. “The resultant decline in GM orders is currently estimated to impact Linamar earnings at a [daily] rate of up to $1-million,” Linamar said in a brief market-conditions update issued late on Wednesday. Linamar is based in Guelph, Ont., and makes transmission, drivetrain, chassis and other components. Its share price fell by 10 per cent on the Toronto Stock Exchange on Thursday. The company employs 28,000 people at 61 factories and 35 sales and research sites in Canada, the United States, Mexico, China and other countries. The automotive market accounted for 68 per cent of its $7.6-billion sales total for 2018. Linamar also makes industrial and agricultural equipment. “The strike is impacting us, of course, as long as it continues,” chief executive officer Linda Hasenfratz said in an e-mail on Thursday. “We hope to see some recovery in volumes after GM gets back to work to make up for depleted inventories.” She declined to say how many people Linamar has laid off as a result of the strike, noting it changes as they are reassigned within the company. Most of Linamar’s Canadian production is shipped to plants in the United States, Ms. Hasenf
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