The auto industry faces months of disruption because of Russia’s war in Ukraine, but production will recover as companies find alternative sources for components, according to the head of one of Canada’s largest parts makers. 

Linamar Corp. Chief Executive Officer Linda Hasenfratz said her firm expects to endure “another month to two months” of supply-chain problems directly related to the war. The conflict and widespread sanctions against Russia have forced companies from Stellantis NV to General Motors Co. to Ferrari NV to stop doing business there. 

“I think that we shouldn’t get too carried away with expectations of massive declines in the market in Europe,” Hasenfratz said Thursday in an interview with BNN Bloomberg Television. 

“Obviously there’s going to be some short-term impact. There’s suppliers in Ukraine who are unable to supply. So our customers are rapidly looking at where can they resource those components and systems, and executing on that as we speak,” she said.

Linamar still expects double-digit growth in sales and earnings per share this year. The shares fell 2 per cent to $50.79 in Toronto, the lowest closing price since November 2020, after the company reported fourth-quarter sales and EPS that missed the average analyst estimate.      

The war has added more problems to an automotive supply chain that was already snarled by a shortage of semiconductors. Auto stocks have been hit hard: the Stoxx 600 index of European automakers and parts companies has dropped more than 20 per cent since Feb. 23, the day before Russia’s invasion of its neighbor.  

Guelph, Ontario-based Linamar has been the second-worst-performing stock in Canada’s benchmark S&P/TSX Composite Index since that date, falling 23.4 per cent, according to data compiled by Bloomberg. Larger rival Magna International Inc. has dropped 20.6 per cent. 

Hasenfratz said supply chains are also clogged in the company’s industrial unit, which manufactures farm equipment, lifts for construction sites and other products. 

“The demand is huge. I mean, the order book is massively up from last year,” she said. “It’s been a struggle to get products from suppliers.” The company still expects to produce double-digit growth in revenue and earnings this year, she said, even though commodities costs will likely remain elevated.