August 6, 2009 / 10:27 PM / 9 years ago

UPDATE 1-Martinrea International posts Q2 loss

* Q2 net loss C$0.12/shr vs EPS C$0.16 year ago

* Q2 revenue C$243.3 vs C$410.9 mln year ago

* Sees positive operational cash flow in Q3

Aug 6 (Reuters) - Martinrea International Inc (MRE.TO) reported a second-quarter loss as the Canadian auto parts maker continued to be hit by weakness in the North American automotive industry and customer pricing pressures.

“The second quarter of 2009 demonstrated continued weakness in revenues and volumes in the North American automotive industry, and included the bankruptcy filings of two of our largest customers, General Motors and Chrysler in the United States,” CEO Fred Jaekel said in a statement.

For the quarter, the company posted a net loss of C$8.5 million ($7.89 million), or 12 Canadian cents a share, compared with a profit of C$11.3 million, or 16 Canadian cents a share, a year ago.

Revenue fell about 41 percent to C$243.3 million. Excluding items, the company posted a loss of 7 Canadian cents a share.

Analysts on average expected a loss of 12 Canadian cents a share, excluding items, on revenue of C$223.2 million, according to Reuters Estimates.

During the quarter, automotive industry volumes were roughly half of what they were in the same period last year, Martinrea said, adding that it saw long plant closures at a number of its customers.

The company, however, said it expects operational cash flow to be positive in the third quarter, and sees sales levels and overall production volumes to be higher in the second half of the year, leading to increased revenue.

Shares of the company closed at C$6.54 Thursday on the Toronto Stock Exchange. ($1=1.077 Canadian Dollar) (Reporting by Ashutosh Joshi in Bangalore; Editing by Deepak Kannan)

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