TORONTO - Decoma International Inc. reported a higher first-quarter profit on Monday helped by higher European and North American sales.
But the autoparts maker said lower production volumes and production launches in both North America and in Europe would cut into earnings this year.
CFO Randy Smallbone told shareholders that net income was $27 million, or 30 cents a share, in the quarter ended March 31, up from $24 million, or 27 cents a share, in the same period a year earlier.
That beat an average estimate of 25 cents a share among analysts polled by Thomson First Call.
Decoma, which makes exterior car parts such as plastic bumpers and body panels, is controlled by auto parts giant Magna International Inc.
The company said sales were $561 million for the quarter, up from $497 million for the same period a year earlier.
Smallbone also said the company expects 2003 sales to range between $2.15 billion and $2.23 billion, with 2003 diluted earnings per share in the range of 84 cents to 98 cents.
For all of 2002 sales were $2.06 billion and diluted earnings per share were C$1.03.
"Looking ahead, 2003 is a transition year for Decoma. Anticipated lower production volumes and new production launches in both North America and in Europe, combined with substantial investments in new facilities, will reduce earnings for the full year, particularly in the second half of 2003," Smallbone said in a release accompanying the results.
The company said North American content per vehicle is expected to range between $85 and $88 for 2003, while content per vehicle in Europe is expected to approach $40.