MRO Magazine

Linamar shares tumble after warning about impact of GM strike on earnings


Industry

October 4, 2019
October 4, 2019
The Canadian Press


Industries

TORONTO – Shares of Linamar Corp. lost 10 per cent Thursday after the auto parts maker warned that a strike at General Motors in the U.S. was taking a bite out of its bottom line.

Linamar shares closed down $4.23 to $36.74 after falling as low as $35.33 in trading on the Toronto Stock Exchange.

The Ontario-based company says a strike-related decline in GM orders is affecting Linamar’s earnings by up to $1 million a day.

The strike by the United Auto Workers at GM began on Sept. 16.

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The work stoppage has halted GM production in the United States and cut output in Mexico and Canada.

In addition, Linamar says conditions in its non-automotive markets have softened since the company’s second-quarter results were reported in August.

 


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