Canadian provider Martinrea International Inc. reported a fourth-quarter lack of 9.65 million Canadian {dollars} ($7.62 million) because the affect of the microchip scarcity, rising inflation and prices associated to new enterprise launches dragged down outcomes.
The quarterly loss compares with web revenue of CA$44.97 million ($35.47 million) a yr earlier. Income for the quarter fell 1.6 p.c to CA$1.05 billion ($831.1 million), Martinrea said.
Martinrea Govt Chairman Rob Wildeboer pinned the loss largely on the fallout of the COVID-19 pandemic, corresponding to a semiconductor shortage that has hammered new-vehicle manufacturing during the last yr and financial impacts together with inflation.
“Arguably, the challenges we confronted in 2021 have been better than the challenges we confronted within the early days of the COVID-19 pandemic,” Wildeboer mentioned on a Thursday name with analysts.
He mentioned the corporate can also be within the midst of launching the most important quantity of recent packages in its historical past, saying “elevated” launch prices contributed to the fourth-quarter outcomes.
The decline in income was pushed largely by North American outcomes, which fell 2.5 p.c from a yr earlier to CA$772.2 million ($608.5 million). Gross sales in Europe rose 1.9 p.c from a yr earlier.
Martinrea mentioned its 2021 web revenue reached CA$35.88 million ($28.27 million), in contrast with a lack of CA$27.32 million ($21.56 million) in 2020. Annual gross sales rose 12 p.c from a yr earlier.
Wildeboer known as 2022 a yr of “renewed optimism” that pandemic-related monetary headwinds may recede, boosting Martinrea’s monetary efficiency and the trade’s total well being. Nonetheless, challenges persevered in early 2022, together with the impacts of the Russian invasion of Ukraine and the fallout from protesters shutting down the vital Ambassador Bridge U.S.-Canada border crossing final month.
“Undoubtedly, there might be extra challenges. We dwell in a troubled world,” Wildeboer mentioned. “Nonetheless, as we glance ahead, we imagine there are causes to be constructive. Our fourth-quarter outcomes have been higher than our third-quarter outcomes, and we’re off to a superb begin within the early a part of 2022.”
Martinrea ranks No. 73 on the Automotive News list of the highest 100 international suppliers, with worldwide components gross sales to automakers of $2.45 billion in 2020.