By Adriano Marchese
Linamar Corp. said Monday that supply chain disruptions are impeding its ability to meet market demand, and higher costs are weighing on its margins.
The Canadian advanced manufacturing company said agricultural commodity prices and farm incomes continue to rise, which have driven demand.
However, Linamar said continued supply chain disruptions affect the company’s ability to meet new demand levels, while its margins are under pressure by higher materials, commodity, energy and logistics costs.
Meanwhile, the company noted that light vehicle production forecast has decreased in line with expectations, and that it expects fewer units will be produced in 2022.
In particular, this is concentrated primarily in Europe due to the Russian invasion of Ukraine, while its North America and Asia Pacific regions remain relatively unchanged.
Write to Adriano Marchese at [email protected]
