Donnelly revises third-quarter outlook due to lower automotive productionDonnelly revises third-quarter outlook due to lower automotive production

Donnelly Corporation has revised its third-quarter earnings estimate as a result of lower-than-expected North American automotive production levels. A weakening production environment, which began in …

Donnelly Corporation has revised its third-quarter earnings estimate as a result of lower-than-expected North American automotive production levels. A weakening production environment, which began in August, accelerated after the 11 September terrorist attacks and had a negative impact on Donnelly“s financial results. “All of our North American automotive customers have slowed production to reduce inventories, and many have experienced production interruptions over the past several weeks,” said chairman and chief executive officer Dwane Baumgardner. “This resulted in reduced sales, leading Donnelly to revise its third-quarter outlook to an operating loss of US$ 0.28 to US$ 0.38 per share.” In addition, as announced in July, Donnelly“s third-quarter results will also reflect a restructuring charge of approximately US$ 3 million, or US$ 0.30 per share, at net income as a result of its recent restructuring activities in North America and Europe. Donnelly is a technology-driven, customer-focused automotive supplier that has been based in Holland, Michigan, US, since 1905. Through its various product lines, Donnelly serves every major automotive manufacturer in the world.