May 7, 2009 / 10:15 PM / 9 years ago

UPDATE 1-Auto parts maker Martinrea posts Q1 loss

* Revenue down 52.7 pct

* Sees higher Q2 revenue to rise from Q1

May 7 (Reuters) - Canadian auto parts maker Martinrea International Inc (MRE.TO) reported a first-quarter loss as the ongoing recession forced the company’s customers to reduce production.

For the quarter ended Jan 31, the company posted a net loss of C$11.8 million ($10.11 million), or 16 Canadian cents per share, compared with a profit of C$10 million, or 14 Canadian cents per share, in the year-ago quarter.

Excluding certain items, the company’s adjusted loss was C$10.5 million, or 15 Canadian cents per share for the first quarter.

Revenue fell 52.7 percent to C$205.0 million, primarily due to significant production cuts by customers in North American light vehicle platforms as a result of the economic recession and customer pricing pressures.

Analysts, on average, were expecting the company to report a loss of 17 Canadian cents per share on revenue of C$218.57 million, according to Reuters Estimates.

Martinrea noted that the expected plant closings of its customers including General Motors Corp (GM.N) and Chrysler will affect the company in the second quarter. GM is the company’s largest customer, it said.

The company, however, said for the second quarter of 2009, it anticipates revenue to be slightly higher than the first quarter revenue provided current customer production schedules do not change.

Martinrea shares, which have gained 86 percent in the last three months, closed at C$4.72 Thursday on the Toronto Stock Exchange. ($1=1.167 CANADIAN DOLLAR) (Reporting by R. Manikandan in Bangalore, Editing by Dinesh Nair)

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