Executives at Martinrea International Inc.

are optimistic about its prospects for electric vehicles, even as a microchip shortage hits the auto industry.

Executives at Martinrea International Inc. told analysts they were optimistic on the company’s prospects for electric vehicles, even as a shortage of microchips has become a burden on the auto industry.

The comments came as Martinrea capped a difficult year in which it faced automotive plant closures with its net profit falling 12 per cent to nearly $45 million in the final quarter of 2020.

Martinrea executives said there have been “hiccups” around semiconductors amid a worldwide shortage, and that it’s likely to be “bumpy” going forward.

General Motors said this week than an Ontario plant would have more downtime through at least mid-April. GM is one of several automakers to idle plants this spring amid the chip shortage.

Martinrea executives said that there is sometimes only a week’s notice of whether chip shipments will come to the automakers, and that the whole industry had “underestimated” the issue.

The company has also been making big bets on graphene through investments in a company called NanoXplore, but has faced challenges around other commodities like aluminum. Executives said it has also been a struggle to get staff to plants abroad amid travel restrictions.

The auto parts manufacturer earned 56 cents per diluted share in the fourth quarter, down from 63 cents per share or $51.2 million a year earlier.

The adjusted profit surged 30.7 per cent to $44.2 million or 55 cents per share, up from $33.8 million or 42 cents per share in the fourth quarter of 2019.

Revenues for the three months ended Dec. 31 increased 16.7 per cent to $1.07 billion from $917.6 million in the prior year.