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GM strike sends ripples across auto parts suppliers

(Adds Magna International)

Nov 8 (Reuters) – Several auto parts makers and suppliers have lowered their full-year forecasts and disclosed hits to quarterly earnings from the 40-day strike at No.1 U.S. carmaker General Motors.

Last month, members of the United Auto Workers ratified a new four-year labor deal, ending the strike that began on Sept. 16 over higher pay, greater job security, a bigger share of profit and protection of healthcare benefits.

Below are companies impacted by the strike:

MAGNA INTERNATIONAL INC

The Canadian auto parts maker said the labor strike at General Motors, its biggest customer, will potentially hit full-year sales by about $500 million.

The strike will also hit consolidated margins by about 30 basis points, the company said.

AMERICAN AXLE & MANUFACTURING HOLDINGS INC

The driveline and drivetrain systems maker said the strike reduced third-quarter sales by $57 million and also warned of an about $250 million hit to full-year revenue, prompting the company to lower its 2019 forecast.

APTIV PLC

The auto parts maker said the strike wiped off $70 million from the company’s revenue and reduced profit by 10 cents per share in the third quarter.

The company’s full-year forecast includes an estimated $250 million impact from the GM strike.

TENNECO INC

The auto parts maker expects the strike to have a negative impact of about $35 million on fourth-quarter EBITDA.

AK STEEL HOLDING CORP

The company cut its forecast for full-year earnings and flat-rolled steel shipments, citing the strike.

It predicted a reduction of flat-rolled steel shipments to between 5.3 and 5.4 million tons for the full year, citing the strike.

KAISER ALUMINUM CORP

The company said it had lower-than-expected automotive shipments in the third quarter, partly due to the GM strike, and flagged a potential $3 million to $6 million EBITDA impact.

PULTEGROUP INC

The U.S. homebuilder said it saw an impact on demand in many of Midwest markets from the lengthy labor dispute.

GENTEX CORP

The automatic-dimming rearview mirror maker said the GM strike hit third-quarter net sales by about 2%.

Gentex also lowered its full-year sales forecast, and said it expects about $7 million to $8 million in lost sales per week of the strike.

PAM TRANSPORTATION SERVICES

The U.S. truckload services provider said the GM-UAW strike impacted its quarterly earnings.

LINAMAR CORP

The Canadian auto parts maker said it estimated a profit impact of up to C$1 million ($761,035) per day due to a fall in orders from General Motors. ($1 = 1.3140 Canadian dollars) (Compiled by Sanjana Shivdas in Bengaluru; Editing by Sriraj Kalluvila and Shailesh Kuber)


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