Linamar Shares Drop After Adjustment in Contract Revenue

Shares of auto parts manufacturer Linamar Corp. (LIMAF.PK) were down more than 7% Wednesday afternoon after the company adjusted the value of some takeover contracts awarded to the company in 2008.

Total sales related to these contracts were originally expected to be approximately C$235-million, but are now forecast to be closer to C$150-million, the company said.

In a statement, Linamar CEO Linda Hasenfratz said:

Although we are obviously disappointed by the lower volume level around our takeover business projects we still feel it is a substantial and material amount of new business for us. We continue to focus on other takeover opportunities with other replacement business for these program commitments.