* Revenue C$424.87 mln vs C$614.52 mln
* Analysts had expected a Q1 loss of C$0.17 a share
TORONTO, May 4 (Reuters) - Linamar Corp (LNR.TO) reported a quarterly loss on Monday as the auto industry’s global slump slashed demand for its parts, but it said it was picking up market share and on track with plans to cut costs and pay off debt.
Linamar, which makes precision components for engines and transmissions, lost C$12.6 million ($10.8 million), or 19 Canadian cents a share, in its first quarter, ended March 31. That was down from a profit of C$29.5 million, or 43 Canadian cents a share, a year earlier.
Analysts had expected, on average, a loss of 17 Canadian cents a share, according to Reuters Estimates.
Guelph, Ontario-based Linamar said that losses from continuing operations were C$894,000 in the quarter, compared with earnings of C$29.5 million in the 2008 period.
Sales fell to C$424.87 million from C$614.52 million.
The company said it generated C$72.8 million in operational cash flow, C$29 million of which was from reductions in working capital.
Linamar’s syndicated revolving credit facility was C$249.6 million as of March 31, up C$32.3 million from Dec. 31.
“Despite Q1 2009 being one of the most difficult economic periods to manage through in our company’s history, Linamar has managed to dramatically increase market share, execute on significant cost savings and generate more than C$30 million of cash to pay down debt levels,” Linamar Chief Executive Linda Hasenfratz said in a statement “We have a plan, are successfully executing on such and seeing the results.”
During the quarter, some analysts had said Linamar might default on its covenants when US$80 million in notes come due in October. But the company said it withdrew C$100 million from its credit line in April to put toward the notes.
Linamar said on Thursday, after Chrysler filed for Chapter 11 bankruptcy protection, that it was confident it would recover the majority of receivables owed by the auto maker.
Linamar said the outstanding balance owing from Chrysler that was older than 20 days was estimated at less than C$700,000.
The company also said it had limited exposure to GM on receivables.
Linamar declared a quarterly dividend of 3 Canadian cents
The company reported its results after market close. Its shares ended the day up 12 Canadian cents at C$4.49 on the Toronto Stock Exchange. ($1=$1.17 Canadian) (Reporting by John McCrank; Editing by Frank McGurty)