GUELPH, ON, Nov. 2, 2016 /CNW/ - (TSX: LNR)
- Sales increase 14.3% over the third quarter of 2015 ("Q3 2015")
to reach $1.46 billion;
- Operating earnings increase 13.7% over Q3 2015 to reach
$163.9 million;
- Net earnings up 13.6% and earnings per share, on a diluted
basis, up 13.4% over Q3 2015 reaching $122.2
million and $1.86
respectively;
- Continued business wins maintain strong launch book at nearly
$3.9 billion;
- Powertrain/Driveline delivers excellent sales and operating
earnings growth with operating earnings up 15.8% to $124.2 million from Q3 2015 on a sales increase
of 15.4% on global light vehicle markets up 5.4%; and
- Industrial segment delivers sales and earnings growth on strong
scissor sales and solid market share gains in telehandlers.
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
September
30
|
|
September
30
|
|
2016
|
2015
|
2016
|
2015
|
(in millions of
dollars, except earnings per share figures)
|
$
|
$
|
$
|
$
|
Sales
|
1,455.5
|
1,273.9
|
4,630.8
|
3,919.5
|
Operating Earnings
(Loss)1
|
|
|
|
|
|
Powertrain/Driveline
|
124.2
|
107.3
|
429.1
|
329.7
|
|
Industrial
|
39.7
|
36.9
|
120.6
|
135.9
|
Operating Earnings
(Loss)
|
163.9
|
144.2
|
549.7
|
465.6
|
Net Earnings
(Loss)
|
122.2
|
107.6
|
406.0
|
341.4
|
Net Earnings (Loss)
per Share – Diluted
|
1.86
|
1.64
|
6.16
|
5.19
|
________________________
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").
|
Operating Highlights
Sales for the third quarter of 2016 ("Q3 2016") were
$1,455.5 million, up $181.6 million from $1,273.9 million in Q3 2015.
Sales for the Powertrain/Driveline segment
("Powertrain/Driveline") increased by $163.7
million, or 15.4% in Q3 2016 compared with Q3 2015.
The sales increase in Q3 2016 was impacted by:
- the acquisition of Montupet S.A. in Q1 2016;
- significant levels of newly launched programs in Europe and Asia; and
- higher sales resulting from favourable changes in foreign
exchange rates; partially offset by
- lower sales on commercial vehicles in North America and Europe.
The Industrial segment ("Industrial") product sales increased
8.5%, or $17.9 million, to
$228.1 million in Q3 2016 from Q3
2015. The sales increase was due to:
- strong scissor sales growth due to good market and market share
growth in Asia and North America; and
- strong telehandler sales growth due to excellent market share
growth despite a softer market in North
America; partially offset by
- decreased booms sales due to very soft market conditions in
North America, which overwhelmed
the market share growth in the region; and
- lower sales resulting from unfavourable changes in foreign
exchange rates.
The company's operating earnings for Q3 2016 were $163.9 million. This compares to
$144.2 million in Q3 2015, an
increase of $19.7 million.
Q3 2016 operating earnings for Powertrain/Driveline were higher
by $16.9 million, or 15.8% over Q3
2015. The Powertrain/Driveline segment experienced the
following in Q3 2016:
- better margins as a result of productivity and efficiency
improvements;
- earnings related to the acquisition of the Montupet S.A.;
- the net recovery related to the premature ending of customer
contacts primarily related to off highway commercial vehicles;
- higher earnings resulting from favourable changes in foreign
exchange rates across multiple currencies and Linamar's growing
global presence; and
- improved earnings as production volumes increased on launching
programs; partially offset by
- lower earnings as production volumes decreased on commercial
vehicles.
Industrial segment operating earnings in Q3 2016 increased
$2.8 million or 7.6% over Q3 2015.
The increase in Industrial operating earnings was predominantly
driven by:
- better margins as a result of changes in product mix and
productivity improvements;
- improved margins as a result of the net increase in volumes;
partially offset by
- lower margins resulting from unfavourable changes in foreign
exchange rates.
"2016 is shaping up to be another record year of double digit
top and bottom line growth," said Linamar CEO Linda Hasenfratz. "We saw another
fantastic quarter in Q3 and we feel confident in our ability to
continue to grow. Business wins are at a record level, we are
rapidly delevering the balance sheet thanks to solid cash flow and
we continue to see great growth opportunities globally."
Dividends
The Board of Directors today declared an eligible dividend in
respect to the quarter ended September 30,
2016 of CDN$0.10 per share on
the common shares of the company, payable on or after December 9, 2016 to shareholders of record on
November 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
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.
Q4 2016 Conference Call Information
Linamar will hold
a conference call on March 8, 2017 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) conference ID 3093797, 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 8,
2017 and at www.sedar.com by the start of business on
March 9, 2017. A taped replay
of the conference call will also be made available starting at
8:00 p.m. on March 8, 2017 for ten days. The number for
replay is (855) 859-2056, Conference ID 3093797.
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 http://linamar.com/ or follow us on Twitter at
@LinamarCorp.
SOURCE Linamar Corporation