GUELPH, ON, Aug. 5, 2015 (TSX: LNR)
- Sales increase 23.8% over the second quarter of 2014 ("Q2
2014") to reach record levels of $1.37
billion on global vehicle markets up 0.3% and access markets
up 13%;
- Operating earnings up 33.2% over Q2 2014 to reach record levels
of 165.6 million;
- Net earnings and earnings per share up 33% over Q2 2014
reaching record levels of $120.1
million and $1.84
respectively;
- Continued business wins drive launch book to nearly
$3.7 billion;
- Industrial segment delivers excellent growth and margin
improvements from Q2 2014 with operating earnings up 43.7% to
$54.6 million on a sales increase of
29%;
- Powertrain/Driveline delivers excellent growth and margin
improvements with operating earnings up 28.6% to $111.0 million from Q2 2014 on a sales increase
of 22.5%; and
- Content per vehicle growth in every market and market share
growth on scissors and booms globally.
|
Three Months
Ended
|
Six Months
Ended
|
|
June 30
|
June 30
|
|
2015
|
2014
|
2015
|
2014
|
(in millions of
dollars, except earnings per share
figures)
|
$
|
$
|
$
|
$
|
Sales
|
1,368.1
|
1,105.1
|
2,645.6
|
2,147.9
|
Operating Earnings
(Loss)
|
|
|
|
|
|
Powertrain/Driveline
|
111.0
|
86.3
|
222.5
|
168.1
|
|
Industrial
|
54.6
|
38.0
|
98.9
|
68.3
|
Operating Earnings
(Loss)
|
165.6
|
124.3
|
321.4
|
236.4
|
Net Earnings
(Loss)
|
120.1
|
89.7
|
233.8
|
169.4
|
Net Earnings
(Loss) per Share
|
1.84
|
1.38
|
3.59
|
2.61
|
Operating Highlights
Sales for the second quarter of
2015 ("Q2 2015") were $1,368.1
million, up $263.0 million
from $1,105.1 million in Q2 2014.
Sales for the Powertrain/Driveline segment
("Powertrain/Driveline") increased by $199.3
million, or 22.5% in Q2 2015 compared with Q2 2014.
The sales increase in Q2 2015 was impacted by:
- the acquisition of our new forging businesses in Europe and North
America in Q1 2015 and Q4 2014 respectively;
- significant levels of newly launched programs in North America;
- higher sales resulting from favourable changes in foreign
exchange rates; and
- the ramp up of launching programs in Europe and Asia.
The Industrial segment ("Industrial") product sales increased
28.9% or $63.7 million to
$284.1 million in Q2 2015 from Q2
2014. The sales increase was due to:
- increased North American, Asian and European sales from higher
market demand for access equipment;
- higher sales resulting from favourable changes in foreign
exchange rates;
- market share growth for booms in North America, Europe and Asia; and
- market share growth for scissor lifts in North America, Europe and Asia.
The company's operating earnings for Q2 2015 were $165.6 million. This compares to
$124.3 million in Q2 2014, an
increase of $41.3 million.
Q2 2015 operating earnings for Powertrain/Driveline were higher
by $24.7 million or 28.6% over Q2
2014. The Powertrain/Driveline segment experienced the
following in Q2 2015:
- improved margins as production volumes increased on launching
programs;
- better margins as a result of productivity and efficiency
improvements;
- earnings related to the acquisition of our new forging
businesses in Europe and
North America in Q1 2015 and Q4
2014 respectively; and
- higher margins as a result of a favourable sales mix to highly
capital intensive programs, which inherently have higher margins to
meet return expectations; partially offset by
- increased management and sales costs supporting growth.
Industrial segment operating earnings in Q2 2015 increased
$16.6 million or 43.7% over Q2 2014.
The increase in Industrial operating earnings was predominantly
driven by:
- increased demand and market share growth in the access
equipment markets; and
- higher margins resulting from favourable changes in foreign
exchange rates; partially offset by
- lower margins due to a less favourable customer and product mix
of the units sold in the quarter; and
- increased management and sales costs supporting growth.
"We have completed another outstanding quarter at Linamar with
solid market share gains again driving record levels of sales and
earnings," said Linamar CEO Linda
Hasenfratz. "Financially we saw double digit sales and
earnings growth in line with goals and have once more improved our
margin performance. Strategically, we initiated our light
metal casting strategy with our announced global partnership with
GF Automotive. Our diversification strategy continues to
deliver outstanding opportunities in a variety of markets,
processes and products driving consistent sustainable growth for
us. We are excited by what our team is achieving and what the
future holds."
Dividends
The Board of Directors today declared an
eligible dividend in respect to the quarter ended June 30, 2015 of CDN$0.10 per share on the common shares of the
company, payable on or after September 11,
2015 to shareholders of record on August 25, 2015.
Forward Looking Information, Risk and Uncertainties
Linamar no longer provides a financial outlook.
Certain information provided by Linamar in this MD&A, the
unaudited interim financial statements and other documents
published throughout the year which are not recitation of
historical facts may constitute forward-looking statements. The
words "may", "would", "could", "will", "likely", "estimate",
"believe", "expect", "plan", "forecast" and similar expressions are
intended to identify forward-looking statements. Readers 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 of the factors and risks
and uncertainties that cause results to differ from current
expectations include, but are not limited to, changes in the
various economies in which Linamar operates, fluctuations in
interest rates, environmental emission and safety regulations, the
extent of OEM outsourcing, industry cyclicality, trade and labour
disruptions, world political events, 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, technological developments by
Linamar's competitors, governmental, environmental and regulatory
policies and changes in the competitive environment in which
Linamar operates.
The foregoing is not an exhaustive list of the factors that may
affect Linamar's forwarding looking statements. These and other
factors should be considered carefully and readers should not place
undue reliance on Linamar's forward-looking statements. 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
Q2 2015 Conference Call Information
Linamar will hold
a conference call on August 5, 2015
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 12322880,
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 5, 2015 and at www.sedar.com by the start
of business on August 6, 2015.
A taped replay of the conference call will also be made available
starting at 7:45 p.m. on August 5, 2015 for ten days. The number for
replay is (855) 859-2056, Conference ID 12322880. 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/4ue3o9zi
Q3 2015 Conference Call Information
Linamar will hold
a conference call on November 4, 2015
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 12325574, 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 4,
2015 and at www.sedar.com by the start of business on
Novmeber 5, 2015. A taped replay of the conference call will
also be made available starting at 7:45
p.m. on November 4, 2015 for
ten days. The number for replay is (855) 859-2056, Conference
ID 12325574. 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/kqge7s7i
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 4 operating
groups – Machining & Assembly, Forging, Light Metal Castings
and Skyjack, all world leaders in the design, development and
production of highly engineered products. The Company's
Machining and Assembly, Forging and Casting operating groups focus
on precision metallic components, modules and systems for engine,
transmission and driveline systems designed to drive lightweight,
fuel efficient function in 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 19,500 employees in 48 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 $4.2 billion in 2014. For more information about
Linamar Corporation and its industry leading products and services,
visit www.linamar.com.
Frank
Hasenfratz
|
Linda
Hasenfratz
|
Chairman of the
Board
|
Chief Executive
Officer
|
|
|
Guelph,
Ontario
|
August 5,
2015
|
SOURCE Linamar Corporation