Martinrea International caps difficult year with Q4 profits dropping to $45 million

·2 min read

TORONTO — Martinrea International Inc. capped a difficult year in which it faced automotive plant closures with its net profit falling 12 per cent to nearly $45 million in the final quarter of 2020.

The autoparts manufacturer says it earned 56 cents per diluted share in the fourth quarter, down from 63 cents per share or $51.2 million a year earlier.

The adjusted profit surged 30.7 per cent to $44.2 million or 55 cents per share, up from $33.8 million or 42 cents per share in the fourth quarter of 2019.

Revenues for the three months ended Dec. 31 increased 16.7 per cent to $1.07 billion from $917.6 million in the prior year.

Martinrea was expected to report an adjusted profit of 52 cents per share on $1 billion of revenues, according to financial markets data firm Refinitiv.

For the full-year, it lost $27.3 million or 34 cents per share, compared with a profit of $181.2 million or $2.19 per diluted share in 2019.

Adjusted profits dropped to $46.9 million or 58 cents per share, down from $187.7 million or $2.27 per share a year earlier.

Revenues decreased 12.6 per cent to $3.37 billion, from $3.86 billion in 2019.

"Looking at 2020, after a challenging second quarter where we generated minimal sales and an operating loss, our results rebounded sharply in the back half of the year, which saw us generate record adjusted diluted net earnings per share in both the third and fourth quarters," stated CEO Pat D'Eramo.

"Our fourth-quarter results were characterized by continued strong volumes and an adjusted operating income margin above year-ago levels — a strong result despite renewed lockdowns and other public health restrictions in November and December as a result of the COVID-19 pandemic, which impeded some integration and launch activities."

This report by The Canadian Press was first published March 4, 2021.

Companies in this story: (TSX:MRE)

The Canadian Press