VAUGHAN, Ont. — Auto parts manufacturer Martinrea said it has a positive long-term outlook as it improved sales and earnings in its second quarter, even as semiconductor supply issues disrupt the auto industry.
The Vaughan, Ont.-based company reported a net income of $23.9 million for the quarter ended June 30, compared to a net income loss of $146.9 million in the same quarter last year.
That equates to a net earnings of 30 cents per share, compared to a net loss of $1.84 per share in the previous year.
On an adjusted basis, Martinrea's net income was $27 million or 34 cents per share, compared to an adjusted net loss of $73.1 million or 91 cents per share last year.
The company said its margins were affected by a heavier new business launch cycle than usual this quarter, and from difficulties around labour availability in some regions.
It said it has a positive long-term outlook due to strong demand and record inventory lows for vehicles.
"Our current launch activity is expected to generate future sales growth as well as strong margins once supply bottlenecks are removed, and production normalizes," said Pat D’Eramo, president and chief executive officer. "Our future remains bright, and our team continues to manage well under challenging circumstances."
This report by The Canadian Press was first published Aug. 10, 2021.
Companies in this story: (TSX:MRE)
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