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Linamar Hungary 2009 profit plunges 54%

Automotive parts and farm machinery maker Linamar Hungary's net income dropped 53.6% to HUF 330 million in 2009 as revenue fell faster than costs and financial expenses grew, the company's IFRS report for the period published late Monday shows.

Sales dropped 27.9% to HUF 22.9 billion. Cost of sales fell at a slower rate, slipping 25.8% to HUF 20.9 billion, causing gross profit to plunge 44.1% to HUF 1.96 billion.

Operating profit fell 73.7% to HUF 451 million.

Linamar's bottom line was helped by financial profit of HUF 402 million, well over HUF 152 million in the previous year.

Automotive component and precision machining generated 59.9% of Linamar's sales in 2009, while agricultural equipment and general machinery accounted for the remaining 40.1%.

Linamar racked up a HUF 525 million loss in Q4 as revenue fell faster than costs and it paid tax deferred earlier.

Fourth-quarter sales fell 33% to HUF 4.32 billion. Cost of sales dropped 30% to HUF 4.33 million to give the company a slight loss already on the gross profit line.

About HUF 279m in taxes caused losses to grow further.

Financial profit came to HUF 266 million in Q4, growing from HUF 124 million in the same period a year earlier.

In Q4 2008, Linamar had pre-tax profit of HUF 114 million, but a HUF 653 million tax bill gave it a loss. (MTI-ECONEWS)