Auto suppliers excluded from the profit windfall

0

Lear Corp., the world’s ninth-largest auto parts supplier, reported a third-quarter loss of $ 27 million this month, up from $ 174 million in net profit a year earlier, lower production vehicles that have eaten away at the company’s finances.

In a call with investors this month, Lear CEO Ray Scott pointed out that unpredictability was the problem.

“Our financial results were negatively affected not only by significant volume reductions compared to last year,” said Scott, “but also by low visibility from our customers resulting in short-term production shutdowns. “

Similarly, Canadian giant Magna International Inc., North America’s largest supplier, reported third-quarter net income of $ 11 million, a 97% drop from the $ 405 million made. one year earlier.

Cooper-Standard Automotive Inc. said it suffered a net loss of $ 123.2 million in the third quarter. In response to the situation, CEO Jeff Edwards told investors he was renegotiating contracts with customers, with the goal of recouping $ 100 million in losses.

“We have requested recoveries from October 1,” said Edwards. “Obviously we can ask what we want, and we are at the negotiating stage where, in some cases, we have achieved it. In other cases, negotiations are still ongoing. “


Source link

Share.

Comments are closed.