GUELPH, ON, May 8, 2013 /CNW/ - (TSX: LNR)
- Operating earnings up 24.7% over the first quarter of 2012 ("Q1
2012") to reach $71.7 million;
- Adjusted net earnings up 26.0% over Q1 2012 to reach
$48.4 million;
- Adjusted EPS is up 27.1% over Q1 2012 to reach $0.75;
- New business wins continue to be strong, launch book at nearly
$2.5 billion;
- Industrial segment operating earnings up 120.0% to $14.3 million on slightly declining sales;
showing significant margin improvements from Q1 2012;
- Powertrain/Driveline operating earnings up 12.5% from Q1 2012
on sales up 1.5% despite market declines; and
- Return on Equity reaches 17.9% and Return on Capital Employed
improves to 13.3%.
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Three Months Ended |
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|
March 31 |
|
|
|
2013 |
2012 |
(in millions of dollars, except
earnings per share
figures) |
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$ |
$ |
Sales |
|
|
846.6 |
839.8 |
Operating Earnings (Loss) |
|
|
|
|
|
Powertrain/Driveline |
|
|
57.5 |
51.0 |
|
Industrial |
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|
14.2 |
6.5 |
Operating Earnings (Loss) |
|
|
71.7 |
57.5 |
|
|
|
|
|
Net Earnings Attributable to
Shareholders of the Company |
|
|
48.4 |
39.6 |
|
Unusual Items |
|
|
- |
(1.2) |
Net Earnings (Loss) Attributable to
Shareholders of the Company - Adjusted |
|
|
48.4 |
38.4 |
|
|
|
|
|
Net Earnings per Share |
|
|
0.75 |
0.61 |
Net Earnings (Loss) per Share -
Adjusted |
|
|
0.75 |
0.59 |
|
|
|
|
|
Unusual Items |
|
|
|
|
Taxable Items before Tax |
|
|
|
|
|
1) Exchange loss
(gain) on the 2021 Private Placement Notes |
|
|
- |
(1.6) |
Tax Impact |
|
|
- |
0.4 |
Total Unusual Items |
|
|
- |
(1.2) |
Operating Highlights
Sales for the first quarter of 2013 ("Q1 2013")
were $846.6 million, up $6.8 million from $839.8
million in Q1 2012.
Sales for the Powertrain/Driveline segment
increased by $10.6 million, or 1.5%
in Q1 2013 to $709.1 million compared
to $698.5 million in Q1 2012.
The sales increase in the first quarter was impacted by:
- increased North American sales as a result of the significant
levels of newly launched programs being largely offset by
reductions in the on and off highway commercial vehicle
markets;
- increased European sales due to substantial levels of programs
being launched being offset by the reduction in both the automotive
vehicle and the on and off highway commercial vehicle markets;
and
- increased Asian sales as a result of the ramp up of programs in
launch and higher volumes on mature programs.
Industrial segment sales decreased slightly by
2.7% or $3.8 million from Q1 2012 to
$137.5 million. The sales decrease
was:
- due to decreases in demand in the access equipment markets in
Europe; largely offset by:
- higher sales from newly established operations in emerging
global markets such as Brazil.
The company's operating earnings for Q1 2013
were $71.7 million, an increase of
$14.2 million or 24.7%.
Q1 2013 operating earnings of $57.4 million for the Powertrain/Driveline
segment were higher by $6.4 million
from operating earnings of $51.0
million in Q1 2012. The segment experienced the
following in Q1 2013:
- improved margins as production volumes increased on launching
and mature programs;
- better margins as a result of productivity and efficiency
improvements;
- higher margins as a result of a favourable sales mix to highly
capital intensive programs which inherently have higher margins to
meet return expectations;
- lower amount of start-up costs in comparison to the level of
start-up activity in Q1 2012; partially offset by:
- decreases due to the reduced volumes in the on and off highway
commercial markets in Europe and
North America; and
- investments in fixed labour and overhead costs to support the
future growth of the market.
The Q1 2013 operating earnings for the
Industrial segment were $14.3
million, a 120.0% improvement from operating earnings of
$6.5 million in Q1 2012. The
Industrial operating earnings were predominantly driven by:
- the strengthening EUR against other currencies in the quarter
compared to the same period in 2012 that resulted in a foreign
exchange gain in Q1 2013 as compared to a foreign exchange loss in
Q1 2012;
- margin improvements on product launches in the access equipment
market;
- decreased launch costs associated with the energy programs;
and
- favourable mix towards higher margin sales.
"We are thrilled with our first quarter results,
notching another new record in earnings performance," said Linamar
CEO Linda Hasenfratz.
"Launches are performing extremely well, our launch book continues
to grow and a strong focus on efficiency and productivity is
driving fantastic margin improvement. Despite a reasonably
flat outlook for global markets our outlook remains extremely
positive for double digit earnings growth in 2013."
Dividends
The Board of Directors today declared an
eligible dividend in respect to the quarter ended March 31, 2013 of CDN$0.08 per share on the common shares of the
company, payable on or after June 3,
2013 to shareholders of record on May
24, 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
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
Q2 2013 Conference Call Information
Linamar will hold a conference call on August 14, 2013 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 59537009, 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 14, 2013 and at www.sedar.com
by the start of business on August 15,
2013. A taped replay of the conference call will also
be made available starting at 11:00
p.m. on August 14, 2013 for
seven days. The number for replay is (855) 859-2056,
Conference ID 59537009. 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/zkhimd7j
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 17,400 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 |
Guelph, Ontario
May 8, 2013
SOURCE Linamar Corporation