GUELPH, ON, March 9, 2016 /CNW/ - (TSX: LNR)
- Sales increase 24% over 2014 to reach $5.2 billion;
- Operating earnings increase 33% over 2014 to reach $597.0 million;
- Net earnings up 36% and earnings per share up 36% over 2014
reaching $436.7 million and
$6.71 respectively;
- Continued business wins drive launch book to nearly
$3.8 billion;
- Industrial segment delivers excellent sales and operating
earnings growth with operating earnings up 42% to $156.2 million on a sales increase of 23%;
- Powertrain/Driveline delivers excellent sales and operating
earnings growth as well with operating earnings up 31% to
$440.8 million from 2014 on a sales
increase of 24%; and
- Content per vehicle growth in every market and market share
growth on booms and telehandlers.
|
Three Months
Ended
|
Twelve Months
Ended
|
December
31
|
December
31
|
(in millions of
dollars, except earnings per share figures)
|
2015
|
2014
|
2015
|
2014
|
$
|
$
|
$
|
$
|
Sales
|
1,243.0
|
1,003.0
|
5,162.4
|
4,171.6
|
Operating Earnings
(Loss)1
|
|
|
|
|
|
Powertrain/Driveline
|
111.1
|
87.1
|
440.8
|
337.7
|
|
Industrial
|
20.3
|
14.0
|
156.2
|
109.7
|
Operating Earnings
(Loss)
|
131.4
|
101.1
|
597.0
|
447.4
|
Net Earnings
(Loss)
|
95.3
|
71.8
|
436.7
|
320.6
|
Net Earnings (Loss)
per Share
|
1.46
|
1.11
|
6.71
|
4.95
|
Operating Highlights
Sales for the fourth quarter of
2015 ("Q4 2015") were $1,243.0
million, up $240.0 million
from $1,003.0 million in Q4 2014.
Sales for the Powertrain/Driveline segment
("Powertrain/Driveline") increased by $220.6
million, or 25.1% in Q4 2015 compared with Q4 2014.
The sales increase in Q4 2015 was impacted by:
- higher sales resulting from favourable changes in foreign
exchange rates;
- the acquisition of the forging businesses in Europe in Q1 2015; and
- significant levels of newly launched programs in North America and Europe.
The Industrial segment ("Industrial") product sales increased
15.8% or $19.4 million to
$142.5 million in Q4 2015 from Q4
2014. The sales increase was due to:
- higher sales resulting from favourable changes in foreign
exchange rates;
- significant market share growth for booms in North America, Europe and Asia
Pacific;
- market share growth for scissors in Asia Pacific; and
- market share growth for telehandlers in North America; partially offset by
- somewhat lower sales for scissors in North America.
The company's operating earnings for Q4 2015 were $131.4 million. This compares to
$101.1 million in Q4 2014, an
increase of $30.3 million.
Q4 2015 operating earnings for Powertrain/Driveline were higher
by $24.0 million or 27.6% over Q4
2014. The Powertrain/Driveline segment experienced the
following in Q4 2015:
- improved earnings as production volumes increased on launching
programs;
- higher earnings resulting from favourable changes in foreign
exchange rates across multiple currencies and Linamar's growing
global presence; and
- earnings related to the acquisition of the forging businesses;
partially offset by
- increased management and sales costs supporting growth.
______________________________________________
1
For more information refer to the section entitled "Non-GAAP and
Additional GAAP Measures" in the Company's separately released
Management's Discussion and Analysis ("MD&A").
Industrial segment operating earnings in Q4 2015 increased
$6.3 million or 45.0% over Q4 2014.
The increase in Industrial operating earnings was predominantly
driven by:
- higher margins resulting from favourable changes in foreign
exchange rates;
- increased volumes as described above; partially offset by
- increased management and sales costs supporting growth.
"We are thrilled to deliver another record year on sales and
earnings at Linamar, our fifth consecutive year of doing so," said
Linamar CEO Linda Hasenfratz.
"Financially we again saw strong, industry leading double digit top
and bottom line growth. Strategically, we have made enormous
progress in 2015 in our vertical integration strategy, successfully
acquiring or joint venturing with three world leading forging and
aluminum casting companies. We are perfectly positioned for
continued exciting market share growth driving continued
exceptional performance in 2016 and beyond."
Dividends
The Board of Directors today declared an
eligible dividend in respect to the quarter ended December 31, 2015 of CDN$0.10 per share on the common shares of the
company, payable on or after April 15,
2016 to shareholders of record on April 1, 2016.
Forward Looking Information, Risk and Uncertainties
Linamar no longer provides a financial outlook.
Certain information provided by Linamar in this press release,
MD&A, the consolidated 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
Q4 2015 Conference Call Information
Linamar will hold
a conference call on March 9, 2016 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 68602541,
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 9, 2016 and at www.sedar.com by the start
of business on March 10, 2016.
A taped replay of the conference call will also be made available
starting at 7:45 p.m. on March 9, 2016 for ten days. The number for
replay is (855) 859-2056, Conference ID 68602541. 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.icastpro.ca/lin160309
Q1 2016 Conference Call Information
Linamar will hold
a conference call on May 4, 2016 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 56698204, 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 4,
2016 and at www.sedar.com by the start of business on
May 5, 2016. A taped replay of
the conference call will also be made available starting at
7:45 p.m. on March 9, 2016 for ten days. The number for
replay is (855) 859‑2056, Conference ID 56698204.
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, Light Metal Casting, Forging and
Skyjack, all world leaders in the design, development and
production of highly engineered products. The Company's
Machining and Assembly, Casting and Forging operating groups focus
on precision metallic components, modules and systems for engine,
transmission, driveline and body 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 23,000 employees
in 56 manufacturing locations, 6 R&D centers and 15 sales
offices in 17 countries in North and South America, Europe and Asia, Linamar generated sales of $5.2 billion in 2015. For more information
about Linamar Corporation and its industry leading products and
services, visit www.linamar.com.
Guelph, Ontario
March 9, 2016
SOURCE Linamar Corporation