GUELPH, ON, May 4, 2016 /CNW/ - (TSX: LNR)
- Sales increase 18.8% over the first quarter of 2015 ("Q1 2015")
to reach record levels of $1.5
billion;
- Operating earnings increase 10.5% over Q1 2015 to reach record
levels of $172.1 million;
- Net earnings up 11.2% and earnings per share up 10.9% over Q1
2015 reaching record levels of $126.4
million and $1.94
respectively;
- Continued business wins leave launch book with $3.7 billion;
- Powertrain/Driveline delivers excellent sales and operating
earnings growth with operating earnings up 29.1% to $144.0 million from Q1 2015 on a sales increase
of 23.8%;
- Content per vehicle growth in every market;
- Market share growth on newly launched products at Skyjack.
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Three Months
Ended
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March 31
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2016
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2015
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(in millions of
dollars, except earnings per share figures)
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$
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$
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Sales
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1,518.1
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1,277.5
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Operating Earnings
(Loss)1
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Powertrain/Driveline
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144.0
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111.5
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Industrial
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28.1
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44.3
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Operating Earnings
(Loss)
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172.1
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155.8
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Net Earnings
(Loss)
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126.4
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113.7
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Net Earnings (Loss)
per Share
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1.94
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1.75
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_______________________
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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").
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Operating Highlights
Sales for the first quarter of 2016 ("Q1 2016") were
$1,518.1 million, up $240.6 million from $1,277.5 million in Q1 2015.
Sales for the Powertrain/Driveline segment
("Powertrain/Driveline") increased by $252.5
million, or 23.8% in Q1 2016 compared with
Q1 2015. The sales increase in Q1 2016 was impacted
by:
- the acquisition of Montupet S.A. in Q1 2016;
- higher sales resulting from favourable changes in foreign
exchange rates across multiple currencies and Linamar's growing
global presence; and
- significant levels of newly launched programs in North America and Europe.
The Industrial segment ("Industrial") product sales decreased
5.5% or $11.9 million to $203.6 million in Q1 2016 from Q1 2015. The
sales decrease was due to:
- a delay in spending of larger national customers seen in the
quarter; partially offset by
- higher sales resulting from favourable changes in foreign
exchange rates across multiple currencies and Linamar's growing
global presence;
- market share growth for telehandlers in North America; and
- significant global market share growth for booms.
The company's operating earnings for Q1 2016 were $172.1 million. This compares to
$155.8 million in Q1 2015, an
increase of $16.3 million.
Q1 2016 operating earnings for Powertrain/Driveline were higher
by $32.5 million or 29.1% over Q1
2015. The Powertrain/Driveline segment experienced the
following in Q1 2016:
- improved earnings as production volumes increased on launching
programs;
- earnings related to the acquisition of Montupet S.A.; and
- higher earnings resulting from favourable changes in foreign
exchange rates across multiple currencies and Linamar's growing
global presence; partially offset by
- increased management and sales costs supporting growth;
and
- acquisition costs related to the purchase of Montupet S.A.
Industrial segment operating earnings in Q1 2016 decreased
$16.2 million or 36.6% over Q1 2015.
The decrease in Industrial operating earnings was predominantly
driven by:
- delayed earnings as a result of the spending delays of larger
national customers;
- lower margins as a result of the product mix favouring new
launching products such as booms and telehandlers with lower
margins;
- increased management and sales costs supporting growth;
and
- the result of a bad debt provision related to a Canadian
customer operating primarily in the oil & gas industry;
partially offset by
- higher margins resulting from favourable changes in foreign
exchange rates across multiple currencies and Linamar's growing
global presence.
"We are off to a solid start in 2016 with another quarter of
record financial results and double digit growth," said Linamar CEO
Linda Hasenfratz. "Markets are
in good shape enhancing the key driver of our performance; market
share growth. Content per vehicle hit new highs in every
region and Skyjack continues to build market share in key products,
both are doing a fantastic job of driving our great growth today
and will continue to do so in the future."
Dividends
The Board of Directors today declared an eligible dividend in
respect to the quarter ended March 31,
2016 of CDN$0.10 per share on
the common shares of the company, payable on or after June 2, 2016 to shareholders of record on
May 23, 2016.
Forward Looking Information, Risk and Uncertainties
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
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 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 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 May 4, 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.
Q2 2016 Conference Call Information
Linamar will hold
a conference call on August 10, 2016
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) conference ID 3028764, 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 10,
2016 and at www.sedar.com by the start of business on
August 11, 2016. A taped replay
of the conference call will also be made available starting at
8:00 p.m. on August 10, 2016 for ten days. The number
for replay is (855) 859-2056, Conference ID 3028764. The
conference call can also be accessed by web cast at
www.linamar.com, by accessing the investor relations/events
menu.
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 24,000 employees
in 57 manufacturing locations, 6 R&D centers and 21 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 or follow us on Twitter at
@LinamarCorp.
Guelph,
Ontario
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May 4,
2016
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SOURCE Linamar Corporation