GUELPH, ON, Nov. 4, 2014 /CNW/ - (TSX: LNR)
- Sales increase 14.3% and operating earnings increase 49.4% over
the third quarter of 2013 ("Q3 2013");
- Net earnings up 52.7% over Q3 2013 and earnings per share up
53.8% over Q3 2013 reaching $79.4
million and $1.23
respectively;
- Net margins reach 7.8%;
- Launch book at more than $3.3
billion;
- Industrial segment showed significant margin improvements from
Q3 2013 with operating earnings up 265.3%% to $27.4 million on a sales increase of 32.0%;
- Powertrain/Driveline segment showed strong margin improvements
as well with operating earnings up 24.8% to $82.4 million from Q3 2013 on a sales increase of
11.3%;
- Return on Capital Employed reached 22.6% continuing our trend
of solid improvements for the last 13 quarters;
- Completed the acquisition of Carolina Forge Company, LLC's
("CFC") business of high volume hot forged products, located in
Wilson, North Carolina; and
- Continued cash generation of nearly $20
million despite the acquisition of CFC to drive one of the
strongest balance sheets in our peer group.
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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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2014
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2013
|
2014
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2013
|
(in millions of
dollars, except earnings per share
figures)
|
$
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$
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$
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$
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Sales
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1,020.7
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893.3
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3,168.6
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2,669.4
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Operating Earnings
(Loss)
|
|
|
|
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Powertrain/Driveline
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82.4
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66.0
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250.5
|
188.5
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Industrial
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27.4
|
7.5
|
95.7
|
46.8
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Operating Earnings
(Loss)
|
109.8
|
73.5
|
346.2
|
235.3
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Net Earnings
(Loss)
|
79.4
|
52.0
|
248.8
|
161.1
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Net Earnings (Loss)
per Share
|
1.23
|
0.80
|
3.84
|
2.49
|
|
|
|
|
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Operating Highlights
Sales for the third quarter of
2014 ("Q3 2014") were $1,020.7
million, up $127.4 million
from $893.3 million in Q3 2013.
Sales for the Powertrain/Driveline segment
("Powertrain/Driveline") increased by $86.6
million, or 11.3% in Q3 2014 compared with Q3 2013.
The sales increase in Q3 2014 was impacted by:
- the significant levels of newly launched programs and volume
increases on mature programs in North
America;
- increased European sales due to substantial levels of programs
launching and our new German camshaft business acquired in Q4
2013;
- increased volumes and launching business from the Company's on
and off highway vehicle customers in all three regions; and
- the ramp up of launching programs and volume increases on
mature programs in Asia.
The Industrial segment ("Industrial") product sales increased
32.0% or $40.8 million to
$168.4 million in Q3 2014 from Q3
2013. The sales increase was due to:
- increased North American and European sales from higher market
demand for access equipment;
- market share growth for scissor lifts in Europe; and
- market share growth for booms in North America.
The Company's operating earnings for Q3 2014 were $109.8 million. This compares to
$73.5 million in Q3 2013, an increase
of $36.3 million.
Q3 2014 operating earnings for Powertrain/Driveline were higher
by $16.4 million or 24.8% over Q3
2013. The Powertrain/Driveline segment experienced the
following in Q3 2014:
- improved margins as production volumes increased on launching
and mature programs;
- higher margins as a result of a favourable sales mix to highly
capital intensive programs, which inherently have higher margins to
meet return expectations; and
- better margins as a result of productivity and efficiency
improvements; partially offset by
- increased management and sales costs supporting
growth.
Industrial segment operating earnings in Q3 2014 increased
$19.9 million or 265.3% over Q3 2013.
The increase in Industrial operating earnings was predominantly
driven by:
- increased demand and market share growth in the access
equipment markets;
- productivity and efficiency improvements driven by higher
volumes on new products and cost savings initiatives on mature
products; partially offset by
- management and sales costs supporting growth.
"We are very pleased to report another outstanding quarter of
double digit top and bottom line growth and margin expansion," said
Linamar CEO Linda Hasenfratz.
"We have had an exceptional quarter on several fronts; financially
of course, but also in terms of excellent new business wins to
drive continued substantial growth over the next 5 years and
execution on our strategic goals of vertically integrating into the
forging field. We are delivering terrific results today and
positioning for continued excellent performance in the long
term."
Dividends
The Board of Directors today declared an
eligible dividend in respect to the quarter ended September 30, 2014 of CDN$0.10 per share on the common shares of the
company, payable on or after December 12,
2014 to shareholders of record on November 26, 2014.
Risk and Uncertainties (forward looking
statements)
Linamar no longer provides a financial
outlook.
Certain information provided by Linamar in these unaudited
interim financial statements, Management Discussion & Analysis
("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 Original
Equipment Manufacturers ("OEMs") 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 2014 Conference Call Information
Linamar will hold
a conference call on November 4, 2014
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 3096792, 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 MD&A will be available on the
company's website after 4 p.m. EST on
November 4, 2014 and at www.sedar.com
by the start of business on November
5, 2014. A taped replay of the conference call will
also be made available starting at 11:00
p.m. on November 4, 2014 for
seven days. The number for replay is (855) 859-2056,
Conference ID 30967921. 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 seven day
period.
Audio only streaming of the conference call available at
http://www.media-server.com/m/p/bssei47m
Q4 2014 Conference Call Information
Linamar will hold
a conference call on March 4th, 2015
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 12315094,
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 MD&A will be available on
the company's website after 4 p.m.
EST on March 4th, 2015 and at
www.sedar.com by the start of business on March 5th, 2015. A taped replay of the
conference call will also be made available starting at
7:45 p.m. on March 4th, 2015 for ten days. The number
for replay is (855) 859-2056, Conference ID 12315094. The
conference call can also be accessed by web cast at
www.linamar.com, by accessing the investor relations/events
menu.
Audio only streaming of the conference call available at
http://www.media-server.com/m/p/tfvcrbw3
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 segment which are further divided into 3 operating
groups – Machining & Assembly, Forging, and Skyjack, all world
leaders in the design, development and production of highly
engineered products. The Company's Machining & Assembly
and Forging operating groups focus on precision metallic
components, modules and systems for engine, transmission and
driveline systems designed for global vehicle and industrial
markets. The Company's Skyjack operating group is noted
for its innovative, high quality mobile industrial equipment,
notably its class-leading aerial work platforms and
telehandlers. With more than 19,000 employees in 45
manufacturing locations, 5 R&D centers and 15 sales offices in
14 countries in North and South
America, Europe and
Asia, Linamar generated sales of
$3.6 billion in 2013. For more
information about Linamar Corporation and its industry leading
products and services, visit www.linamar.com
(signed)
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(signed)
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Frank
Hasenfratz
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Linda
Hasenfratz
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Chairman of the
Board
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Chief Executive
Officer
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Guelph,
Ontario
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November 4,
2014
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SOURCE Linamar Corporation