GUELPH, ON, May 10, 2017 /CNW/ - (TSX: LNR)
- Sales increase 9.1% over the first quarter of 2016 ("Q1 2016")
to reach $1.66 billion;
- Operating earnings increase 11.7% over Q1 2016 to reach
$192.2 million;
- Net earnings up 14.8% and earnings per share, on a diluted
basis, up 14.6% over Q1 2016 reaching $145.1
million and $2.20
respectively;
- Continued business wins maintain strong launch book at over
$4.4 billion and include several
highly strategic component wins;
- Powertrain/Driveline delivers strong results with sales and
operating earnings growth despite flat markets; and
- Industrial segment delivers excellent sales and operating
earnings growth thanks to market share gains for all of its
products in North America,
Europe and Asia along with solid market growth in all
three regions.
|
|
Three Months
Ended
|
|
|
|
March 31
|
|
|
2017
|
2016
|
(in millions of
dollars, except earnings per share figures)
|
|
$
|
$
|
Sales
|
|
1,656.0
|
1,518.1
|
Operating Earnings
(Loss)1
|
|
|
|
|
Powertrain/Driveline
|
|
146.4
|
144.0
|
|
Industrial
|
|
45.8
|
28.1
|
Operating Earnings
(Loss)
|
|
192.2
|
172.1
|
Net Earnings
(Loss)
|
|
145.1
|
126.4
|
Net Earnings (Loss)
per Share – Diluted
|
|
2.20
|
1.92
|
__________________________________
|
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 first quarter of 2017 ("Q1 2017") were
$1,656.0 million, up $137.9 million from $1,518.1 million in Q1 2016.
Sales for the Powertrain/Driveline segment
("Powertrain/Driveline") increased by $54.6
million, or 4.2% in Q1 2017 compared with Q1 2016. The
sales increase in Q1 2017 was impacted by:
- the acquisition of Montupet S.A. in Q1 2016;
- launching programs in North
America, Europe and
Asia;
- higher production volumes on certain automotive programs;
partially offset by
- lower sales for off-highway vehicles globally; and
- lower sales resulting from unfavourable changes in foreign
exchange rates.
The Industrial segment ("Industrial") product sales increased
40.9%, or $83.3 million, to
$286.9 million in Q1 2017 from Q1
2016. The sales increase was due to:
- strong market share gains in scissors, booms and telehandlers
in North America, Europe and Asia;
- increased access equipment volumes as a result of solid market
growth in all three regions; partially offset by
- lower sales resulting from unfavourable changes in foreign
exchange rates.
The Company's operating earnings for Q1 2017 were $192.2 million. This compares to
$172.1 million in Q1 2016, an
increase of $20.1 million.
Q1 2017 operating earnings for Powertrain/Driveline were higher
by $2.4 million, or 1.7% over Q1
2016. The Powertrain/Driveline segment experienced the
following in Q1 2017:
- earnings related to the acquisition of Montupet S.A.;
- higher earnings related to increased production volumes on
certain automotive programs; and
- improved earnings as production volumes increased on launching
programs; partially offset by
- lower earnings as production volumes decreased for off-highway
vehicles;
- lower earnings as a result of a loss on the foreign exchange
revaluation of the operating balances, in contrast to a large gain
in Q1 2016; and
- lower margins as a result of changes in product mix.
Industrial segment operating earnings in Q1 2017 increased
$17.7 million or 63.0% over Q1 2016.
The increase in Industrial operating earnings was
predominantly driven by:
- improved margins as a result of the net increase in
volumes;
- higher earnings as a result of a gain on the foreign exchange
revaluation of the operating balances, in contrast to a large loss
in Q1 2016; and
- a specific Q1 2016 bad debt expense related to a Canadian
customer operating primarily in the oil and gas industry that did
not reoccur; partially offset by
- lower margins as a result of changes in product mix and
launching products; and
- increased management and sales costs supporting growth.
"We have had another solid start to the year at Linamar with
strong results in both segments," said Linamar CEO Linda Hasenfratz. "This is our
23rd consecutive quarter of double digit operating
earnings growth which is fantastic. We are also excited about
the outsourcing opportunities we are seeing in non-traditional
areas of the powertrain which we feel are indicative of future OEM
plans."
Dividends
The Board of Directors today declared an eligible dividend in
respect to the quarter ended March 31,
2017 of CDN$0.12 per share on
the common shares of the Company, payable on or after June 2, 2017 to shareholders of record on
May 23, 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
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.
Q2 2017 Conference Call Information
Linamar will hold
a conference call on August 2, 2017
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 74609681, 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 2,
2017 and at www.sedar.com by the start of business on
August 3, 2017. A taped replay
of the conference call will also be made available starting at
8:00 p.m. on August 2, 2017 for ten days. The number for
replay is (855) 859-2056, Conference ID 74609681.
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 5 operating
groups – Machining & Assembly, Light Metal Casting, Forging,
Skyjack and Agriculture, 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
and Agriculture operating groups are noted for their innovative,
high quality mobile industrial equipment, notably its class-leading
aerial work platforms, telehandlers and agricultural
equipment. With more than 25,500 employees in 58
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 www.linamar.com or follow us on
Twitter at @LinamarCorp.
Guelph, Ontario
May 10, 2017
SOURCE Linamar Corporation