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Automodular loss lower than last year

Car parts maker Automodular Corp. reported a first-quarter net loss yesterday of $200,000, improved from a year-earlier loss of $1 million, but dragged down by the impact of General Motors cancelling its contracts with the supplier of auto parts and assembly line services.

Car parts maker Automodular Corp. reported a first-quarter net loss yesterday of $200,000, improved from a year-earlier loss of $1 million, but dragged down by the impact of General Motors cancelling its contracts with the supplier of auto parts and assembly line services.

Toronto-based Automodular said the quarter includes a $1.5-million pretax charge for severance costs and $3.3-million impairment charge related to the General Motors termination announced in April.

The loss amounted to one cent per share in the most recent period, versus a loss of four cents per share in the comparable period of 2009.

The cancelled contracts — to supply parts and services for the assembly of the Camaro muscle car at GM’s Oshawa plant — accounted for about 20 per cent of Automodular’s overall business, but it continues to supply GM’s plant in Lordstown, Ohio as well as Ford Canada’s plant in Oakville.

 
 
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