GUELPH, ON, March 8, 2017 /CNW/ - (TSX: LNR)
- Sales increase 16% over 2015 to reach $6.0 billion;
- Operating earnings increase 17% over 2015 to reach $696.8 million;
- Net earnings up 20% and earnings per share, on a diluted basis,
up 20% over 2015 reaching $522.1
million and $7.92
respectively;
- Continued business wins maintain strong launch book at nearly
$4.8 billion;
- Powertrain/Driveline delivers excellent sales and operating
earnings growth with operating earnings up 25% to $551.6 million from 2015 on a sales increase of
19%;
- Industrial segment delivers sales growth despite a soft market
thanks to excellent continued market share increases notably in
telehandlers; and
- Rapid debt reduction thanks to strong cash flow which makes
Linamar's balance sheet one of the strongest in the industry.
|
Three Months
Ended
|
Twelve Months
Ended
|
December
31
|
December
31
|
(in millions of
dollars, except earnings per share figures)
|
2016
$
|
2015
$
|
2016
$
|
2015
$
|
Sales
|
1,374.8
|
1,243.0
|
6,005.6
|
5,162.4
|
Operating Earnings
(Loss)1
|
|
|
|
|
|
Powertrain/Driveline
|
122.4
|
111.1
|
551.6
|
440.8
|
|
Industrial
|
24.6
|
20.3
|
145.2
|
156.2
|
Operating Earnings
(Loss)
|
147.0
|
131.4
|
696.8
|
597.0
|
Net Earnings
(Loss)
|
116.1
|
95.3
|
522.1
|
436.7
|
Net Earnings (Loss)
per Share – Diluted
|
1.76
|
1.45
|
7.92
|
6.63
|
________________________
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 fourth quarter of 2016 ("Q4 2016") were
$1,374.8 million, up $131.8 million from $1,243.0 million in the fourth quarter of 2015
("Q4 2015").
Sales for the Powertrain/Driveline segment
("Powertrain/Driveline") increased by $129.6
million, or 11.8% in Q4 2016 compared with Q4 2015.
The sales increase in Q4 2016 was impacted by:
- the acquisition of Montupet S.A. in Q1 2016; and
- launching programs mainly in Europe and Asia; partially offset by
- lower production volumes on certain automotive programs;
and
- lower sales on commercial vehicles in North America and Europe.
The Industrial segment ("Industrial") product sales increased
1.5%, or $2.2 million, to
$144.7 million in Q4 2016 from Q4
2015. The sales increase was due to:
- increased scissor sales due to market growth and favourable
product mix in Europe and
North America;
- strong scissor market share growth in Asia; 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 and Europe.
The Company's operating earnings for Q4 2016 were $147.0 million. This compares to
$131.4 million in Q4 2015, an
increase of $15.6 million.
Q4 2016 operating earnings for Powertrain/Driveline were higher
by $11.3 million, or 10.2% over Q4
2015. The Powertrain/Driveline segment experienced the
following in Q4 2016:
- earnings related to the acquisition of the Montupet S.A.;
- improved earnings as production volumes increased on launching
programs; and
- better margins as a result of productivity and efficiency
improvements; partially offset by
- lower earnings related to lower production volumes on certain
automotive programs; and
- lower earnings as production volumes decreased on commercial
vehicles.
Industrial segment operating earnings in Q4 2016 increased
$4.3 million or 21.2% over Q4 2015.
The increase in Industrial operating earnings was
predominantly driven by:
- improved margins as a result of the net increase in volumes;
and
- better margins as a result of changes in product mix and
productivity improvements.
"Q4 was another fantastic quarter for us, our 22nd
consecutive quarter of double digit operating earnings growth, a
record we are very proud of," said Linamar CEO Linda Hasenfratz. "Consistent sustainable
growth is a key element of Linamar's story, as is the enormous
markets we are focused on which just keep feeding our backlog to
drive continued growth in the future."
Dividends
The Board of Directors today declared an eligible dividend in
respect to the quarter ended December 31,
2016 of CDN$0.12 per share on
the common shares of the Company, payable on or after April 17, 2017 to shareholders of record on
April 3, 2017.
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
competitive environment in which Linamar operates, OEM outsourcing
and insourcing; sources and availability of raw materials; labour
markets and dependence on key personnel; dependence on certain
customers and product programs; technological change in the sectors
in which the Company operates and by Linamar's competitors; delays
in or operational issues with product launches; foreign currency
risk; long-term contracts that are not guaranteed; acquisition and
expansion risk; foreign business risk; cyclicality and seasonality;
capital and liquidity risk; legal proceedings and insurance
coverage; credit risk; emission standards; tax laws; securities
laws compliance and corporate governance standards; fluctuations in
interest rates; environmental emissions and safety regulations;
trade and labour disruptions; world political events; pricing
concessions to customers; and governmental, environmental and
regulatory policies.
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 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.
Q1 2017 Conference Call Information
Linamar will hold
a conference call on May 10, 2017 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) conference ID 74537341, 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 10, 2017 and at www.sedar.com by
the start of business on May 11,
2017. A taped replay of the conference call will also be made
available starting at 8:00 p.m. on
May 10, 2017 for ten days. The
number for replay is (855) 859-2056, Conference ID 74537341.
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 $6.0 billion in 2016. For more information
about Linamar Corporation and its industry leading products and
services, visit http://www.linamar.com/ or follow us on Twitter at
@LinamarCorp.
SOURCE Linamar Corporation