GUELPH, ON, Nov. 13, 2013 /CNW/ - (TSX: LNR)
- Sales increase 15.5% over the third quarter of 2012 ("Q3 2012")
to reach $893.3 million;
- Operating earnings up 53.4% over Q3 2012 to reach $73.5 million;
- EPS is up 53.8% over Q3 2012 to reach $0.80;
- New business wins continue to be very strong, launch book at
more than $2.6 billion;
- Industrial segment showed significant margin improvements from
Q3 2012 with operating earnings up 837.5% to $7.5 million on a sales increase of 25.1%;
- Powertrain/Driveline showed strong margin improvements with
operating earnings up 40.1% to $66.0
million from Q3 2012 on a sales increase of 14.0%;
- Return on Capital Employed reached 16.11% continuing our trend
of solid improvements for the last several quarters;
- Return on Equity improved 26.3% from Q3 2012 to reach 17.02%;
and
- Positive cash flow reduces Net Debt by $52.8 million from the second quarter of 2013
("Q2 2013")
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Three Months
Ended |
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Nine Months
Ended |
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September 30 |
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September 30 |
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2013 |
2012 |
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2013 |
2012 |
(in millions of dollars, except
earnings per share
figures) |
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$ |
$ |
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$ |
$ |
Sales |
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893.3 |
773.4 |
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2,669.4 |
2,465.4 |
Operating Earnings (Loss) |
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Powertrain/Driveline |
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66.0 |
47.1 |
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188.5 |
147.9 |
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Industrial |
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7.5 |
0.8 |
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46.8 |
22.3 |
Operating Earnings (Loss) |
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73.5 |
47.9 |
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235.3 |
170.2 |
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Net Earnings (Loss)
Attributable to Shareholders of the Company |
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52.0 |
33.7 |
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161.1 |
115.4 |
Unusual items |
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- |
- |
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(1.2) |
Net Earnings (Loss) -
Adjusted |
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52.0 |
33.7 |
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161.1 |
114.2 |
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Net Earnings (Loss) per
Share |
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0.80 |
0.52 |
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2.49 |
1.78 |
Net Earnings (Loss) per Share -
Adjusted |
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0.80 |
0.52 |
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2.49 |
1.77 |
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Unusual items |
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Taxable items before tax |
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1) Exchange loss (gain) on the 2021 Private
Placement Notes |
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- |
- |
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- |
(1.6) |
Tax impact |
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- |
- |
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0.4 |
Total unusual items |
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- |
- |
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- |
(1.2) |
Operating Highlights
Sales for the third quarter of 2013 ("Q3 2013")
were $893.3 million, up $119.9 million from $773.4
million in Q3 2012.
Sales for the Powertrain/Driveline segment
("Powertrain/Driveline") increased by $94.3
million, or 14.0% in Q3 2013 compared with Q3 2012.
The sales increase in Q3 2013 was impacted by:
- increased North American sales as a result of the significant
levels of newly launched programs being slightly offset by
reductions in the on and off highway commercial vehicle markets and
expected levels of business ending.
- increased Asian sales as a result of the ramp up of programs in
launch and higher volumes on mature programs; and
- increased European sales due to substantial levels of programs
launching.
The Industrial segment ("Industrial") product
sales increased 25.1% or $25.6
million to $127.6 million in
Q3 2013 from Q3 2012. The sales increase was due to:
- increases in demand in the access equipment markets; and
- higher sales from emerging global markets such as Brazil.
The company's operating earnings for Q3 2013
were $73.5 million. This
compares to $47.9 million in Q3 2012,
an increase of $25.6 million.
Q3 2013 operating earnings for
Powertrain/Driveline were higher by $18.9
million or 40.1% over Q3 2012. The
Powertrain/Driveline segment experienced the following in Q3
2013:
- improved margins as production volumes increased on launching
and mature programs;
- better margins as a result of productivity and efficiency
improvements;
- lower amount of start-up costs in comparison to the level of
start-up activity in Q3 2012; partially offset by:
- decreases due to the reduced volumes in the on and off highway
commercial markets in North
America; and
investments in labour and overhead costs to support the future
growth of the market.
Industrial operating earnings in Q3 2013
increased $6.7 million or 837.5% over
Q3 2012. The increase in operating earnings was:
- predominantly driven by market share growth and increased
demand in the access equipment market; and
- by productivity and efficiency improvements driven by higher
volumes on new products and cost savings initiatives on mature
products.
"We are delighted to register another solid
quarter of double digit sales and earnings growth along with solid
free cash flow, both driving continued building of margins and
returns," said Linamar CEO Linda
Hasenfratz. "We saw a huge quarter in new business
wins and continue to quote an unprecedented book of new business
opportunities. The completion of our assembled camshaft division
acquisition will support our future growth by adding another
critical tool to our technology and innovation toolbox. The
combination of these new business opportunities with the fantastic
results for the quarter adds up to a great recipe for continued
success."
Dividends
The Board of Directors today declared an
eligible dividend in respect to the quarter ended September 30, 2013 of CDN$0.08 per share on the common shares of the
company, payable on or after December 12,
2013 to shareholders of record on November 26, 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
Q3 2013 Conference Call Information
Linamar will hold a conference call on November 13, 2013 at 5:00
p.m. EST to discuss its third quarter results. The
numbers for this call are (647) 427-3383 (local/overseas) or (888)
424-9894 (North America)
confirmation number 26291572, 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
November 13, 2013 and at
www.sedar.com by the start of business on November 14, 2013. A taped replay of the
conference call will also be made available starting at
11:00 p.m. on November 13, 2013 for seven days. The
number for replay is (855) 859-2056, Conference ID 26291572.
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
Q4 2013 Conference Call Information
Linamar will hold a conference call on March
5, 2014 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 26291572, 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
March 5, 2014 and at www.sedar.com by
the start of business on March 6,
2014. A taped replay of the conference call will also
be made available starting at 11:00
p.m. on March 5, 2013 for
seven days. The number for replay is (855) 859-2056,
Conference ID 26291572. 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 at
www.linamar.com under Investor Relations.
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 18,000 employees in 42
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
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(signed) |
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(signed) |
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Frank Hasenfratz |
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Linda Hasenfratz |
Chairman of the Board |
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Chief Executive Officer |
Guelph, Ontario
November 13, 2013
SOURCE Linamar Corporation