GUELPH, ON, May 6, 2021 /CNW/ - (TSX: LNR)
- During the first quarter of 2021 ("Q1 2021"), the Company
experienced strong sales growth, up 15% vs Q1 2020, and outstanding
normalized net earnings growth, up 2.3 times in comparison to last
year;
- Strong normalized operating earnings growth in both
segments;
- Mobility segment normalized operating earnings up nearly 2.5
times for Q1 2021 and Industrial segment normalized operating
earnings up nearly 1.5 times;
- Free cash flow[1] was $166.2 million for Q1 2021 compared to
$147.1 million for the first quarter
of 2020 ("Q1 2020");
- Liquidity, measured as cash and cash equivalents and available
credit as at March 31, 2021, is
$1.6 billion an increase from
$1.2 billion at March 31, 2020;
- New business wins maintain strong launch book of nearly
$3.7 billion, with more than a third
of Q1 2021 new business wins for electrified vehicles;
- Strong Mobility market share gains with double digit Content
per Vehicle growth in North
America and Asia Pacific
with a record high in North
America;
- Strong equipment sales demand for agricultural equipment
coupled with market share growth in targeted core and expansion
markets; and
- Continued market share gains for access equipment in core North
American markets.
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|
Three Months
Ended
|
|
March 31
|
(in millions of
dollars, except per share figures)
|
|
|
2021
|
2020
|
|
|
$
|
$
|
Sales
|
|
|
1,781.9
|
1,549.8
|
Operating Earnings
(Loss)
|
|
|
|
|
Industrial
|
|
|
35.7
|
42.9
|
Mobility
|
|
|
185.5
|
75.0
|
Operating Earnings
(Loss)1
|
|
|
221.2
|
117.9
|
Net Earnings
(Loss)
|
|
|
153.5
|
78.5
|
Net Earnings (Loss)
per Share – Diluted
|
|
|
2.34
|
1.20
|
Earnings before
interest, taxes and amortization ("EBITDA")1
|
|
|
332.7
|
228.0
|
Operating Earnings
(Loss) – Normalized1
|
|
|
|
|
Industrial
|
|
|
45.9
|
31.4
|
Mobility
|
|
|
175.4
|
72.1
|
Operating Earnings
(Loss) – Normalized
|
|
|
221.3
|
103.5
|
Net Earnings
(Loss) – Normalized1
|
|
|
158.3
|
67.9
|
Net Earnings
(Loss) per Share – Diluted –
Normalized1
|
|
|
2.41
|
1.04
|
EBITDA –
Normalized1
|
|
|
341.3
|
213.9
|
Operating Highlights
Sales for Q1 2021 were $1,781.9
million, up $232.1 million
from $1,549.8 million in Q1 2020.
The Industrial segment ("Industrial") product sales increased
16.5%, or $49.3 million, to
$348.3 million in Q1 2021 from Q1
2020. The sales increase was due to:
- increased agricultural sales from stronger equipment sales
demand and growing market share in targeted core and expansion
markets; and
- additional access equipment sales primarily due to increased
market share in North America for
telehandlers, scissors and booms; partially offset by
- European access equipment sales declines primarily attributed
to adverse conditions associated with the COVID-19 pandemic;
and
- an unfavourable impact on sales from the changes in foreign
exchange rates from Q1 2020.
- Sales for the Mobility segment ("Mobility") increased by
$182.8 million, or 14.6% in Q1 2021
compared with Q1 2020. The sales in Q1 2021 were impacted by:
- increased volumes for certain programs that the Company has
significant business within North
America and Asia;
- increased sales related to launching programs; and
- a favourable impact on sales from the changes in foreign
exchange rates from Q1 2020; partially offset by
- sales declines primarily attributed to adverse conditions
associated with semi conductor chip supply issues impacting our
customers.
The Company's normalized operating earnings for Q1 2021 was
$221.3 million. This compares to
normalized operating earnings of $103.5 million in Q1 2020, an increase of
$117.8 million.
Industrial segment normalized operating earnings in Q1 2021
increased $14.5 million, or 46.2%
from Q1 2020. The Industrial normalized operating earnings results
were predominantly driven by:
- increased agricultural sales from stronger equipment and parts
sales demand; and
- a net increase in access equipment volumes; partially offset
by
- an unfavourable impact on sales and expenses from the changes
in foreign exchange rates from Q1 2020.
Q1 2021 normalized operating earnings for Mobility were higher
by $103.3 million, or 143.3% compared
to Q1 2020. The Mobility segment's earnings were impacted by the
following:
- increased volumes for certain programs that the Company has
significant business within North
America and Asia;
- increased sales related to launching programs;
- cost savings achieved in the quarter;
- a favourable impact on sales and expenses from the changes in
foreign exchange rates from Q1 2020; and
- the utilization of government support programs related to the
global COVID-19 pandemic; partially offset by
- sales declines primarily attributed to adverse conditions
associated with semi conductor chip supply issues impacting our
customers.
"We have come out of the gate very strong in 2021 with earnings
up dramatically, double digit sales growth and continued free cash
flow." said Linamar CEO Linda
Hasenfratz, "New business wins are off to a strong start,
notably on the electric vehicle side, and we continue to be in a
very strong position in terms of cash and our balance sheet. We
continue to play a leading role as well in fighting the pandemic
with regular testing of employees, an active vaccination clinic and
other community support initiatives. Vaccinations and testing are
how we get through these next months, it is critical we all step up
to take part."
__________________________________
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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").
|
Dividends
The Board of Directors today declared an eligible dividend in
respect to the quarter ended March 31,
2021 of CDN$0.16 per share on
the common shares of the company, payable on or after June 8, 2021 to shareholders of record on
May 28, 2021.
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; public health threats;
cyclicality and seasonality; legal proceedings and insurance
coverage; credit risk; weather; emission standards; capital and
liquidity risk; 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 forward-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 2021 Release Information
Linamar will hold a
webcast call on May 6, 2021, at
5:00 p.m. ET to discuss its first
quarter results. The event will be simulcast and can be accessed at
the following URL
https://www.linamar.com/news-event/q1-2021-earnings-call and can
also be navigated to on the company's website. For those who wish
to listen to an audio only call-in option, the numbers for this
call are (877) 668-0168 (North
America) or (825) 312-2386 (International) Conference ID
5546587, with a call-in required 15 minutes prior to the start of
the webcast. 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 4:00 p.m. ET on May 6,
2021, and at www.sedar.com by the start of business on
May 7, 2021. The webcast replay will
be available at
https://www.linamar.com/news-event/q1-2021-earnings-call after the
call. A taped replay of the conference call will also be made
available starting at 8:00 p.m. ET on
May 6, 2021, for seven days. The
number for the replay is (800) 585-8367 or (416) 621-4642,
Passcode: 5546587. In addition, a recording of the call will be
posted at
https://www.linamar.com/news-event/q1-2021-earnings-call.
Q2 2021 Release Information
Linamar will hold a
webcast call on August 11, 2021, at
5:00 p.m. ET to discuss its second
quarter results. The event will be simulcast and can be accessed at
the following URL
https://www.linamar.com/news-event/q2-2021-earnings-call and can
also be navigated to on the company's website. For those who wish
to listen to an audio only call-in option, the numbers for this
call are (877) 668-0168 (North
America) or (825) 312-2386 (International) Conference ID
1797109, with a call-in required 15 minutes prior to the start of
the webcast. 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 4:00 p.m. ET on August 11,
2021, and at www.sedar.com by the start of business on
August 12, 2021. The webcast replay
will be available at
https://www.linamar.com/news-event/q2-2021-earnings-call after the
call. A taped replay of the conference call will also be made
available starting at 8:00 p.m. ET on
August 11, 2021, for seven days. The
number for the replay is (800) 585-8367 or (416) 621-4642,
Passcode: 1797109. In addition, a recording of the call will be
posted at
https://www.linamar.com/news-event/q2-2021-earnings-call.
Linamar Corporation (TSX:LNR) is an advanced manufacturing
company where the intersection of leading-edge technology and deep
manufacturing expertise is creating solutions that power vehicles,
motion, work and lives for the future. The Company is made up of
two operating segments – the Industrial segment and the Mobility
segment, both global leaders in manufacturing solutions and
world-class developers of highly engineered products. The
Industrial segment is comprised of Skyjack and MacDon. Skyjack
manufactures scissor, boom and telehandler lifts for the aerial
work platform industry. MacDon manufactures combine draper headers
and self-propelled windrowers for the agricultural harvesting
industry. The Mobility segment is subdivided into three regional
groups: North America,
Europe and Asia Pacific. Within the Mobility segment, the
regional groups are vertically integrated operations combining
expertise in light metal casting, forging, machining and assembly
for both the global electrified and traditionally powered vehicle
markets. The Mobility segment products are focused on both
components and systems for new energy powertrains, body and
chassis, driveline, engine and transmission systems of these
vehicles. McLaren Engineering provides design, development, and
testing services for the Mobility segment. Linamar has over 26,000
employees in 61 manufacturing locations, 12 R&D centres and 25
sales offices in 17 countries in North and South America, Europe and Asia which generated sales of $7.4 billion in 2019. 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 6, 2021
SOURCE Linamar Corporation