Martinrea International (T.MRE) falls 19% on corporate update: Canadian market movers

Elizabeth Walters Elizabeth Walters, Stockhouse
0 Comments| December 19, 2013


Here are the most active stocks on Thursday mid-morning on the TSX and TSX Venture Exchange.

On Thursday, the top TSX mover was Martinrea International Inc. (TSX: T.MRE, Stock Forum). It slipped 19% and was trading at $7.63 on volume of 4.9 million shares.
 
On December 18, the automotive parts manufacturer reported that management had identified an issue with the historical reporting of one of the company's Canadian plants and immediately notified the Board and its external auditor KPMG. The review is not complete; however it appears at this point that the plant misreported its financial statements over a number of years dating back to 2005. The discrepancies identified in the plant's financial statements appear to be rooted in the tracking of production and tooling inventories.
 
Additionally, while the vast majority of the company's plants are performing according to the fourth quarter forecast, Martinrea has been experiencing operational issues at its Hopkinsville plant, as it deals with new program launches, copes with customer-requested engineering changes which are impacting productivity and continues to deal with the overall ramp-up in production volumes being experienced in the automotive industry. 
 
As a result the company anticipates that net earnings for the fourth quarter will be negatively impacted by these unusual items and expenses and will likely fall short of previously provided earnings guidance for the quarter. 
 
Detour Gold Corp. (TSX: T.DGC, Stock Forum) was the second most active stock on the TSX. The stock was down 6.2% and trading at $4.21 on volume of 3.6 million.

The exploration and development company had no related news to explain the high volume in trading.
 
Zedi Inc. (TSX: V.ZED, Stock Forum) was the volume leader on the TSX Venture Exchange. It rose 6.2% and was trading at $1.03 on volume of 8.4 million.
 
Today, the software company announced that it has entered into a definitive arrangement agreement, pursuant to which a management-led group will acquire all of the issued and outstanding common shares of Zedi at a price of $1.05 per share. The transaction is valued at approximately $125 million.
 
The second most active stock on the TSX Venture was Fission 3.0 Corp. (TSX: V.FUU, Stock Forum) It gained 36.4% and was trading at $0.15 after three million shares changed hands.

The uranium-focused junior had no news.
 


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