Canadian supplier Linamar Corp. reported a decline in fourth-quarter sales in its transportation segment as a result of the UAW strike at General Motors last year.
The supplier of transmission gears, all-wheel-drive systems and e-axles said Wednesday that overall sales decreased nearly 7 percent to $1.17 billion (USD) in the fourth quarter. The strike cost the company about $93 million in sales.
The strike lasted from the third quarter into the fourth and impacted several other major suppliers. Linamar previously estimated that the strike was costing the company up to $750,000 in earnings a day.
Linamar, based in Guelph, Ontario, Canada, said its fourth-quarter net earnings fell 60 percent to $36 million.
Normalized earnings before interest, taxes, depreciation and amortization fell 10 percent to $160.6 million.
Free cash flow was approximately $275 million in the fourth quarter.
“A few factors were a challenge this quarter and hurt our results,” CEO Linda Hasenfratz said in a call with investors Wednesday evening.
“First of all, clearly the GM strike took a big bite out of the quarter.” Hasenfratz said global market declines also had an impact on fourth-quarter results, but that strong launches in the transportation sector in Europe and Asia helped drive the supplier’s performance. Hasenfratz also said she expects consistent growth in Asia from electrified vehicle program launches.
