Linamar shares tumble after warning about impact of GM strike on earnings
The Canadian PressIndustry Manufacturing
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.
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.