Budd Canada ends year in red, forecasts 2002 loss

TORONTO, Nov 27 Reuters reports that automobile chassis maker Budd Canada Inc. (Toronto:BUD.TO - news) which has been plagued by manufacturing problems, said on Tuesday it ended its 2001 fiscal year with a loss and warned of another loss next year.

The company did not disclose its fourth-quarter net results, but for the fiscal year ended Sept. 30 had a net loss of C$94.2 million, or C$25 per share, compared with a net profit of C$2 million, or 54 Canadian cents a share, the year before.

The company attributed its loss to problems associated with the launch of its new GMT360 frame, which required it to build one of the world's largest hydroforming operations. Problems with the facility earlier led to a management change.

``Despite significant enhancements to manufacturing operation and ongoing productivity improvements, the corporation expects to experience a net loss in fiscal 2002,'' the company said in a statement.