November 04, 2021 - 2:44 PM
TORONTO - Martinrea International Inc. says it swung to a loss of $17.1 million in the third quarter compared with earnings of $45.6 million last year as supply chain issues and inflating costs cut into revenue.
The autoparts manufacturer says the net loss worked out to 21 cents per share for the quarter ending Sept. 30, compared with earnings of 57 cents per share for the same quarter last year.
Sales for the quarter came in at $848.5 million, down 12.6 per cent from $971.1 million last year.
Company chief executive Pat D'Eramo says the quarter was a challenge as the combination of supply chain disruptions and inflating costs of labour, materials and energy are "wreaking havoc on the automotive supply base."
He says that the company has been hit by work stoppages at auto assemblers and that the low visibility on schedules means it's been difficult to adjust labour costs, especially given the tight labour market.
The company says that it expects production volumes to improve next year, and remains confident in meeting its 2023 objective of reaching total sales of between $4.6 billion and $4.8 billion.
This report by The Canadian Press was first published Nov. 4, 2021.
Companies in this story: (TSX:MRE)
News from © The Canadian Press, 2021