TORONTO - Tesma International Inc. reported a slimmer profit on Thursday as the parts maker posted a writedown on some of its German assets, but the company said it sees rising sales in 2003.
The maker of engine and transmission parts reported a profit of C$4 million ($2.7 million), or 12 Canadian cents a share, for the two-month period ended Dec. 31. This was down from a profit C$6.6 million, or 22 Canadian cents a share, for the corresponding period a year earlier.
Tesma, part of the Magna International Inc. group of companies, took an after-tax writedown of about C$13 million, or 41 Canadian cents a share, on assets at its Eralmetall die casting facility in Germany.
Three analysts polled by Thomson First Call had expected earnings of 47 Canadian cents a share before writedowns.
The company said last year it was switching to a Dec. 31 year end from July and would start reporting in U.S. dollars beginning with its first-quarter results, in order to be compared more easily with other auto companies.
Sales for the period were C$235.2 million, up 19 percent from C$198.3 million in 2001, as Tesma's largest customer, General Motors, boosted production by 3 percent in the previous year.
Tesma said it increased its content per vehicle by 12.5 percent to C$61.58 in North America and by 24 percent to 15.74 euros (C$22) in Europe. Also helping sales was a C$6.9 million increase in tooling sales, a strengthening of the euro against the Canadian dollar and growth in export sales.
For 2003, Tesma expects sales to rise 10 percent, despite a projected 3 percent decline in North American vehicle production and flat production in Europe.
Tesma said capital spending should be about C$150 million for the year.
The company also declared a dividend of 11 Canadian cents per share, payable to shareholders of record on March 3.