October 3, 2019 / 5:16 PM / 20 days ago

Linamar flags C$1 million/day profit hit from GM strike; shares tumble

(Reuters) - Shares of Linamar Corp (LNR.TO) tumbled more than 12% on Thursday after the Canadian auto parts maker estimated a profit impact of up to C$1 million per day due to a fall in orders from its customer General Motors Co (GM.N).

GM workers have been on a two-week long strike, forcing the No.1 U.S. automaker to halt production at its pickup and transmission plant in Mexico and crippling its operations across North America.

Linamar said the strike was hurting the automotive market and forecast a decline in the global light vehicle production.

The company, which also supplies equipment to agriculture and construction sectors, said the prolonged U.S.-China trade war coupled with stagnant commodity prices could hurt its sales as farmers delay investment decisions.

Reporting by Arundhati Sarkar in Bengaluru; Editing by Arun Koyyur

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