TORONTO -- Parts maker Decoma International Inc. reported a lower second-quarter profit on Wednesday in part because new facility and product-launch costs took a bite out of earnings.
Decoma said its profit fell to $24.6 million for the period ended June 30. That compares with profit of $33.8 million in the year-before period.
Decoma, which makes exterior car parts such as bumpers and plastic body panels and lighting components, said revenues rose 13 percent to $668.2 million from $592.1 million last year. The company credited its newer European facilities for much of the increase in revenues.
The Concord, Ontario, firm, part of the Magna International group, said profits were also hurt by pricing pressures and said tough market conditions would weigh on margins in the second half of the year.