Linamar withdraws 2020 financial outlook over virus impact
Auto parts manufacturer moved quickly to cut costs and capital spending, expects to be profitable for the year.
GUELPH, Ont. — Auto parts supplier Linamar Corp. says it is withdrawing its 2020 financial outlook until market conditions become clearer for the global automotive industry.
Global light vehicle production is expected to be 21% or 18.6 million units lower this year from the December forecast for 88.6 million vehicles.
The Guelph, Ont.,-based manufacturer says most of its North American operations are deemed essential and not required to close because of the COVID-19 pandemic, while factories in Europe have shuttered.
Reduced consumer demand has forced the shutdown of most operations in the transportation and industrial segments.
Linamar says it moved quickly to cut costs and capital spending, has more than $1.1 billion in cash and available credit and expects to be profitable for the year.
It is working on several ventilator programs to help companies build the artificial breathing machines required for the most critically ill novel coronavirus patients.