GUELPH, ON, Aug. 10, 2016 /CNW/ - (TSX: LNR)
- Sales increase 21% over the second quarter of 2015 ("Q2 2015")
to reach record levels of $1.66
billion;
- Operating earnings increase 29% over Q2 2015 to reach record
levels of $213.7 million;
- Net earnings up 31% and earnings per share, on a diluted basis,
up 30.6% over Q2 2015 reaching record levels of $157.3 million and $2.39 respectively;
- Continued business wins take launch book to $3.9 billion;
- Powertrain/Driveline delivers excellent sales and operating
earnings growth with operating earnings up 45% to $160.9 million from Q2 2015 on a sales increase
of 26% on global light vehicle markets up 3.2%;
- Content per vehicle growth in every market; and
- Market share growth on newly launched telehandler and boom
products at Skyjack in core North American market.
|
Three Months
Ended
|
Six Months
Ended
|
June
30
|
|
June
30
|
(in millions of dollars,
except earnings per share figures)
|
2016
|
2015
|
2016
|
2015
|
$
|
$
|
$
|
$
|
Sales
|
1,657.2
|
1,368.1
|
3,175.3
|
2,645.6
|
Operating Earnings
(Loss)1
|
|
|
|
|
|
Powertrain/Driveline
|
160.9
|
111.0
|
305.0
|
222.5
|
|
Industrial
|
52.8
|
54.6
|
80.8
|
98.9
|
Operating Earnings
(Loss)
|
213.7
|
165.6
|
385.8
|
321.4
|
Net Earnings
(Loss)
|
157.3
|
120.1
|
283.8
|
233.8
|
Net Earnings (Loss) per
Share – Diluted
|
2.39
|
1.83
|
4.31
|
3.56
|
Operating Highlights
Sales for the second quarter of 2016 ("Q2 2016") were
$1,657.2 million, up $289.1 million from $1,368.1 million in Q2 2015.
Sales for the Powertrain/Driveline segment
("Powertrain/Driveline") increased by $283.1
million, or 26.1% in Q2 2016 compared with Q2 2015.
The sales increase in Q2 2016 was impacted by:
- the acquisition of Montupet S.A. in Q1 2016;
- significant levels of newly launched programs in North America and Europe;
- higher sales resulting from favourable changes in foreign
exchange rates; and
- higher sales on mature programs in North America and Asia.
The Industrial segment ("Industrial") product sales increased
2.1%, or $6.0 million, to
$290.1 million in Q2 2016 from Q2
2015. The sales increase was due to:
- significant market share growth for telehandlers in
North America; partially offset
by
- a delay in spending of larger national customers seen in the
quarter.
The company's operating earnings for Q2 2016 were $213.7 million. This compares to
$165.6 million in Q2 2015, an
increase of $48.1 million.
Q2 2016 operating earnings for Powertrain/Driveline were higher
by $49.9 million, or 45.0% over Q2
2015. The Powertrain/Driveline segment experienced the
following in Q2 2016:
- earnings related to the acquisition of Montupet S.A.;
- improved earnings as production volumes increased on both
mature and launching programs;
- better margins as a result of productivity and efficiency
improvements; 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.
Industrial segment operating earnings in Q2 2016 decreased
$1.8 million or 3.3% over Q2 2015.
The decrease in Industrial operating earnings was predominantly
driven by:
- lower margins as a result of the spending delays of larger
national customers; and
- lower margins as a result of the product mix favouring new
launching products such as telehandlers with lower margins;
partially offset by
- increased demand and market share growth in North America for the telehandler
business.
"2016 is shaping up to be another record year of double digit
top and bottom line growth," said Linamar CEO Linda Hasenfratz. "We saw record results
in Q2 which is fantastic and we feel confident in our ability to
continue to grow. Business wins are at a record level,
markets are stable and opportunities globally significant."
Dividends
The Board of Directors today declared an eligible dividend in
respect to the quarter ended June 30,
2016 of CDN$0.10 per share on
the common shares of the company, payable on or after September 12, 2016 to shareholders of record on
August 25, 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
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.
Q3 2016 Conference Call Information
Linamar will hold
a conference call on November 2, 2016
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) conference ID 3049804, 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 2, 2016 and at www.sedar.com
by the start of business on November
3, 2016. A taped replay of the conference call will
also be made available starting at 8:00
p.m. on November 2, 2016 for
ten days. The number for replay is (855) 859-2056, Conference
ID 3049804.
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 24,500 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
August 10, 2016
__________________________
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").
SOURCE Linamar Corporation