GUELPH, ON, March 6, 2013 /CNW/ - (TSX: LNR)
- Sales increase 12.6% over 2011 to reach $3.22 billion;
- Adjusted operating earnings up 32.7% over 2011 to reach a
record level of $218.5 million;
- Adjusted net earnings up 36.7% over 2011;
- Adjusted EPS is up 36.6% over 2011 to reach $2.24;
- New business wins continue to be strong, launch book at more
than $2.3 billion;
- Industrial segment sales up 47.2% and operating earnings up
433.8%, ends year in the black;
- Powertrain/Driveline segment sales up 8.1% and adjusted
operating earnings up 14.2% over 2011;
- Return on Capital Employed improved by 21% from Q4 2011 to
reach 13.08%;
- Total Debt levels reduced further from the third quarter of
2012 ("Q3 2012") and Debt to Total Capitalization continues to
improve reaching 39.9%.
|
Three Months
Ended |
Year Ended |
|
December 31 |
December 31 |
|
2012 |
2011 |
2012 |
2011 |
(in millions of dollars, except
earnings per share
figures) |
$ |
$ |
$ |
$ |
Sales |
756.5 |
718.0 |
3,221.9 |
2,861.4 |
Operating Earnings (Loss) |
|
|
|
|
|
Powertrain/Driveline |
48.0 |
37.5 |
195.8 |
163.8 |
|
Industrial |
0.3 |
(3.9) |
22.7 |
(6.8) |
Operating Earnings (Loss) |
48.3 |
33.6 |
218.5 |
157.0 |
|
Unusual Items |
- |
9.8 |
- |
7.6 |
Operating Earnings (Loss) -
Adjusted |
48.3 |
43.4 |
218.5 |
164.6 |
|
|
|
|
|
Net Earnings Attributable to
Shareholders of the Company |
30.7 |
27.0 |
146.1 |
101.4 |
|
Unusual Items |
- |
0.9 |
(1.2) |
4.6 |
Net Earnings (Loss) Attributable to
Shareholders of the Company - Adjusted |
30.7 |
27.9 |
144.9 |
106.0 |
|
|
|
|
|
Net Earnings per Share |
0.47 |
0.42 |
2.26 |
1.57 |
Net Earnings (Loss) per Share -
Adjusted |
0.47 |
0.43 |
2.24 |
1.64 |
|
|
|
|
|
Unusual Items |
|
|
|
|
Taxable Items before Tax |
|
|
|
|
|
1) Exchange loss
(gain) on the 2017 and 2021 Private Placement Notes |
- |
(4.1) |
(1.6) |
3.9 |
|
2) SES
Cancellation |
- |
9.8 |
- |
9.8 |
Tax Impact |
- |
(1.5) |
0.4 |
(3.6) |
Non-Taxable Items |
|
|
|
|
|
3) Bargain purchase
gain on Famer acquisition |
- |
- |
- |
(2.2) |
|
4) Lower than
expected effective tax rate |
- |
(3.3) |
- |
(3.3) |
Total Unusual Items |
- |
0.9 |
(1.2) |
4.6 |
Operating Highlights
Sales for the fourth quarter of 2012 ("Q4 2012")
were $756.5 million, up $38.5 million from $718.0
million in Q4 2011.
Sales for the Powertrain/Driveline segment
increased by $20.7 million, or 3.2%
in Q4 2012 to $667.7 million compared
to $647.0 million in the fourth
quarter of 2011 ("Q4 2011"). The sales increase in the fourth
quarter was impacted by:
- significant levels of newly launched programs from the
Company's substantial book of launch business; and
- higher volumes on increased consumer demand in the US and
Asia; partially offset by:
- decreased demand in the on and off highway commercial vehicles
markets primarily in Europe;
and
- decreased demand in other European markets for mature
programs.
Industrial segment sales increased 25.1%, or
$17.8 million from Q4 2011 to
$88.8 million. The sales increase
was:
- primarily due to increases in demand in the access equipment
markets resulting from fleet replacement initiatives.
The company's operating earnings for Q4 2012
were $48.3 million. This
compares to adjusted operating earnings of $43.4 million in Q4 2011, an increase of
$4.9 million.
Q4 2012 operating earnings of $48.0 million for the Powertrain/Driveline
segment were higher by $0.7 million
from adjusted operating earnings of $47.3
million in Q4 2011. The segment experienced the
following in Q4 2012:
- improved margins as production volumes increased on launching
and mature programs;
- the cancellation of the SES solar program recognized in Q4 2011
that did not recur in Q4 2012; and
- lower amount of start-up costs in comparison to the level of
start-up activity in Q4 2011; partially offset by:
- investment in fixed labour and overhead costs to support the
future growth of the market; and
- decreases due to the reduced volumes in the on and off highway
commercial markets.
The Q4 2012 operating earnings for the
Industrial segment were $0.3 million,
a 107.7% improvement from operating losses of $3.9 million in Q4 2011. The Industrial
operating earnings were predominantly driven by:
- margin improvements on the increased volumes in the access
equipment market;
- the strengthening US dollar and EUR against other currencies in
the quarter compared to the same period in 2011 that resulted in a
foreign exchange gain in Q4 2012 as compared to a foreign exchange
loss in Q4 2011; and
- decreased launch costs associated with the energy programs;
partially offset by:
- continued investment in labour and fixed overhead costs at
Skyjack to support the future growth in the market.
"We are very pleased to see 2013 close as a
record year on all counts," said Linamar CEO Linda Hasenfratz. "Earnings growth
continues to outpace sales growth by a significant factor, our
balance sheet continues to strengthen positioning us well for
continued growth and investment and we continue to see great
improvements in ROCE and ROE. Our team has worked together to
deliver fantastic results and the future looks great for us here at
Linamar!"
Dividends
The Board of Directors today declared an
eligible dividend in respect to the quarter ended December 31, 2012 of CDN$0.08 per share on the common shares of the
company, payable on or after April 16,
2013 to shareholders of record on April 2, 2013.
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.
Conference Call Information
Q4 2012 Conference Call Information
Linamar will hold a conference call on
March 6, 2013 at 5:00 p.m. EST to discuss its fourth quarter/year
end results. The numbers for this call are (647) 427-3383
(local/overseas) or (888) 424-9894 (North
America) confirmation number 61988753, 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/year end financial
statements, including the Management's Discussion & Analysis
will be available on the company's website after 4 p.m. EST on March 6,
2013 and at www.sedar.com by the start of business on
March 7, 2013. A taped replay
of the conference call will also be made available starting at
11:00 p.m. on March 6, 2013 for seven days. The number
for replay is (855) 859-2056, Conference ID 61988753. 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. Follow this link to connect
http://www.meetview.com/linamar20130306
Q1 2013 Conference Call Information
Linamar will hold a conference call on
May 8, 2013 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 98663569, 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 May 8,
2013 and at www.sedar.com by the start of business on
May 9, 2013. A taped replay of
the conference call will also be made available starting at
11:00 p.m. on May 8, 2013 for seven days. The number for
replay is (855) 859-2056, Conference ID 98663569. 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. Follow this link to connect
http://www.media-server.com/m/p/9648w6ew
Linamar Corporation (TSX:LNR) is a diversified global
manufacturing Company of highly engineered products powering
vehicles, motion, work and lives. The Company is made up of 2
operating segments - the Powertrain/Driveline segment and the
Industrial segments which are further divided into 4 key divisions
- Manufacturing, Driveline, Industrial Commercial Energy ("ICE")
and Skyjack, all world leaders in the design, development and
production of highly engineered products. The Company's
Manufacturing and Driveline divisions focus on precision metallic
components, modules and systems for engine, transmission and
driveline systems designed for passenger vehicle markets. The
ICE group concentrates on similar products for on and off highway
vehicle, energy and other industrial markets. The Company's
Skyjack division is noted for its innovative, high quality mobile
industrial equipment, notably its class-leading aerial work
platforms and telehandlers. With more than 17,200 employees in 40
manufacturing locations, 5 R&D centers and 15 sales offices in
12 countries in North America,
Europe and Asia, Linamar generated sales of more than
$3.22 Billion in 2012. For more
information about Linamar Corporation and its industry leading
products and services, visit www.linamar.com
(signed)
Frank Hasenfratz
Chairman of the Board |
|
|
(signed)
Linda Hasenfratz
Chief Executive Officer |
SOURCE Linamar Corporation