Linamar Corporation (TSX:LNR) -
-- Sales increase 24.4% over the first quarter of 2011 ("Q1 2011") to reach
$840 million;
-- Operating earnings up 58.8% over Q1 2011 to reach $57.5 million;
-- Adjusted EPS is up 55.3% over Q1 2011 to reach $0.59;
-- New business wins continue to be strong, launch book at nearly $2.5
billion;
-- Industrial segment sales up 113.1% over Q1 2011
-- Industrial segment operating earnings return to profitability with a
4.6% operating margin; an improvement of 425% from Q1 2011;
-- Powertrain/Driveline segment sales up 14.7% and operating earnings up
33.5%;
-- Return on Capital Employed improved by 16.5% from Q1 2011; and
-- Return on Equity reaches 16.9%
Three Months Ended
March 31
(in millions of dollars, except earnings per
share figures) 2012 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Sales $ 839.8 $ 675.2
Operating Earnings (Loss)
Powertrain/Driveline 51.0 38.2
Industrial 6.5 (2.0)
----------------------------------------------------------------------------
Operating Earnings (Loss) $ 57.5 $ 36.2
Net Earnings Attributable to Shareholders of
the Company $ 39.6 $ 24.9
Unusual Items (1.2) -
----------------------------------------------------------------------------
Net Earnings (Loss) Attributable to
Shareholders of the Company - Adjusted $ 38.4 $ 24.9
Earnings per Share $ 0.61 $ 0.38
----------------------------------------------------------------------------
Earnings (Loss) per Share - Adjusted 0.59 0.38
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Unusual Items
Taxable Items before Tax
1) Exchange loss (gain) on the Private
Placement Notes (1.6) -
Tax Impact 0.4 -
----------------------------------------------------------------------------
Total Unusual Items (1.2) -
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Operating Highlights
Sales for the first quarter of 2012 ("Q1 2012") were $839.8
million, up $164.6 million from $675.2 million in Q1 2011.
Sales for the Powertrain/Driveline segment increased by $89.6
million, or 14.7% in Q1 2012 to $698.5 million compared to $608.9
million in Q1 2011. The sales increase in the first quarter was
impacted by:
-- higher volumes on increased consumer demand in the US;
-- significant levels of newly launched programs from the Company's
substantial book of launch business; and
-- higher sales from new and expanded facilities such as the acquisition in
France of the Famer Group, the Company's new German facility and
expanded facilities in Mexico and Hungary.
Industrial segment sales increased 113.1%, or $75.0 million from
Q1 2011 to $141.3 million. The sales increase was:
-- primarily due to significant increases in demand in the access equipment
markets resulting from fleet replacement initiatives.
The company's operating earnings for Q1 2012 were $57.5 million.
This compares to $36.2 million in Q1 2011, an increase of $21.3
million.
Q1 2012 operating earnings of $51.0 million for the
Powertrain/Driveline segment were higher by $12.8 million from
operating earnings of $38.2 million in Q1 2011. The segment
experienced the following in Q1 2012:
-- improved margins as production volumes increased on launching and mature
programs; and
-- lower amount of start-up costs in comparison to the level of start-up
activity in Q1 2011.
The Q1 2012 operating earnings for the Industrial segment was
$6.5 million, a 425% improvement from an operating loss of $2.0
million in Q1 2011. The Industrial operating earnings were
predominantly driven by:
-- margin improvements on the increased volumes in the access equipment
market; partially offset by
-- launch costs associated with the energy programs.
"We are delighted with our first quarter results with new
records hit on both sales and earnings," said Linamar CEO Linda
Hasenfratz. "Earnings growth is outpacing sales growth driving
better margins, the industrial segment is solidly back into profit
and all of that is driving great improvements in ROCE and ROE. We
are in a great position at the moment to enjoy a period of
sustained strong performance even as we continue to solidify longer
term growth prospects."
Dividends
The Board of Directors today declared an eligible dividend in
respect to the quarter ended March 31, 2012 of CDN$0.08 per share
on the common shares of the company, payable on or after June 4,
2012 to shareholders of record on May 25, 2012.
Risk and Uncertainties (forward looking statements)
Linamar no longer provides a financial outlook.
Certain information provided by Linamar in these unaudited
interim financial statements, MD&A and other documents
published throughout the year that are not recitation of historical
facts may constitute forward-looking statements. The words
"estimate", "believe", "expect" and similar expressions are
intended to identify forward-looking statements. Persons reading
this report are cautioned that such statements are only predictions
and the actual events or results may differ materially. In
evaluating such forward-looking statements, readers should
specifically consider the various factors that could cause actual
events or results to differ materially from those indicated by such
forward-looking statements.
Such forward-looking information may involve important risks and
uncertainties that could materially alter results in the future
from those expressed or implied in any forward-looking statements
made by, or on behalf of, Linamar. Some risks and uncertainties may
cause results to differ from current expectations. The factors
which are expected to have the greatest impact on Linamar include
but are not limited to (in the various economies in which Linamar
operates): the extent of OEM outsourcing, industry cyclicality,
trade and labour disruptions, pricing concessions and cost
absorptions, delays in program launches, the Company's dependence
on certain engine and transmission programs and major OEM
customers, currency exposure, and technological developments by
Linamar's competitors.
A large proportion of the Company's cash flows are denominated
in foreign currencies. The movement of foreign currency exchange
rates against the Canadian dollar has the potential to have a
negative impact on financial results. The Company has employed a
hedging strategy as appropriate to attempt to mitigate the impact
but cannot be completely assured that the entire exchange effect
has been offset.
Other factors and risks and uncertainties that could cause
results to differ from current expectations are discussed in the
MD&A and include, but are not limited to: fluctuations in
interest rates, environmental emission and safety regulations,
governmental, environmental and regulatory policies, and changes in
the competitive environment in which Linamar operates. Linamar
assumes no obligation to update the forward-looking statements, or
to update the reasons why actual results could differ from those
reflected in the forward-looking statements.
Q1 2012 Conference Call Information
Linamar will hold a conference call on May 9, 2012 at 5:00 p.m.
EST to discuss its first quarter results. The numbers for this call
are (647) 427-3383 (local/overseas) or (888) 424-9894 (North
America) confirmation number 47891230, with a call-in required 10
minutes prior to the start of the conference call. The conference
call will be chaired by Linda Hasenfratz, Linamar's Chief Executive
Officer. A copy of the company's full quarterly/year end financial
statements, including the Management's Discussion & Analysis
will be available on the company's website after 4 p.m. EST on May
9, 2012 and at www.sedar.com by the start of business on May 10,
2012. A taped replay of the conference call will also be made
available starting at 6:00 p.m. on May 9, 2012 for seven days. The
number for replay is (855) 859-2056, Conference ID 47891230. The
conference call can also be accessed by web cast at
www.linamar.com, by accessing the investor relations/events menu,
and will be available for a 7 day period.
Audio only streaming of the conference call available. Please go
to our website (www.linamar.com) and follow the link.
Q2 2012 Conference Call Information
Linamar will hold a conference call on August 8, 2012 at 5:00
p.m. EST to discuss its second quarter results. The numbers for
this call are (647) 427-3383 (local/overseas) or (888) 424-9894
(North America) confirmation number 76899563, with a call-in
required 10 minutes prior to the start of the conference call. The
conference call will be chaired by Linda Hasenfratz, Linamar's
Chief Executive Officer. A copy of the company's quarterly
financial statements, including the Management's Discussion &
Analysis will be available on the company's website after 4 p.m.
EST on August 8, 2012 and at www.sedar.com by the start of business
on August 9, 2012. A taped replay of the conference call will also
be made available starting at 6:00 p.m. on August 8, 2012 for seven
days. The number for replay is (855) 859-2056, Conference ID
76899563. The conference call can also be accessed by web cast at
www.linamar.com, by accessing the investor relations/events menu,
and will be available for a 7 day period.
Audio only streaming of the conference call available. Please go
to our website (www.linamar.com) and follow the link.
Frank Hasenfratz Linda Hasenfratz
Chairman of the Board Chief Executive Officer
Guelph, Ontario
May 9, 2012
Contacts: Linamar Corporation Linda Hasenfratz (519) 836-7550
www.linamar.com
Linamar (TSX:LNR)
Historical Stock Chart
From May 2024 to Jun 2024
Linamar (TSX:LNR)
Historical Stock Chart
From Jun 2023 to Jun 2024
