GUELPH, ON, Aug. 11, 2021 /CNW/ - (TSX: LNR)
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- During the second quarter of 2021 ("Q2 2021"), the Company
experienced strong sales growth, up 71% versus the second quarter
of 2020 ("Q2 2020");
- Outstanding normalized net earnings growth of $129 million in comparison to last year;
- Strong normalized operating earnings in both segments, both up
significantly over prior year;
- Industrial segment normalized operating earnings up 82% for Q2
2021 and Mobility segment normalized operating earnings up
$142 million against Q2 2020, hard
hit by the COVID-19 pandemic;
- Free cash flow1 was $137.7 million for Q2 2021 continuing the
company's excellent balance sheet management;
- Liquidity, measured as cash and cash equivalents and available
credit as at June 30, 2021, is
$1.7 billion an increase from
$1.1 billion at June 30, 2020;
- New business wins grow strong launch book to over $3.7 billion, nearly 25% of year to date new
business wins for electrified vehicles;
- Strong agricultural sales from market growth amplified by
global market share growth in all core products; and
- Continued recovery in access equipment sales and an increase in
market share for booms in Europe
and Asia.
|
Three Months
Ended
|
Six Months
Ended
|
June 30
|
June 30
|
(in millions of
dollars, except per share figures)
|
2021
|
2020
|
2021
|
2020
|
$
|
$
|
$
|
$
|
Sales
|
1,575.3
|
923.6
|
3,357.1
|
2,473.3
|
Operating Earnings
(Loss)
|
|
|
|
|
Industrial
|
73.7
|
24.5
|
109.4
|
67.4
|
Mobility
|
80.0
|
(49.8)
|
265.5
|
25.3
|
Operating Earnings
(Loss)1
|
153.7
|
(25.3)
|
374.9
|
92.7
|
Net Earnings
(Loss)
|
108.0
|
(37.9)
|
261.5
|
40.6
|
Net Earnings (Loss)
per Share – Diluted
|
1.65
|
(0.58)
|
3.99
|
0.62
|
Earnings before
interest, taxes and amortization ("EBITDA")1
|
261.2
|
81.1
|
594.0
|
309.0
|
Operating Earnings
(Loss) – Normalized1
|
|
|
|
|
Industrial
|
66.3
|
36.5
|
112.2
|
67.9
|
Mobility
|
85.9
|
(55.9)
|
261.4
|
16.2
|
Operating Earnings
(Loss) – Normalized
|
152.2
|
(19.4)
|
373.6
|
84.1
|
Net Earnings
(Loss) – Normalized1
|
106.9
|
(22.0)
|
265.2
|
45.0
|
Net Earnings
(Loss) per Share – Diluted –
Normalized1
|
1.63
|
(0.34)
|
4.05
|
0.69
|
EBITDA –
Normalized1
|
259.2
|
92.1
|
600.6
|
306.0
|
Operating Highlights
Sales for Q2 2021 were $1,575.3
million, up $651.7 million
from $923.6 million in Q2 2020.
The Industrial segment ("Industrial") product sales increased
51.8%, or $134.3 million, to
$393.5 million in Q2 2021 from Q2
2020. The sales increase was due to:
- additional access equipment sales primarily due to market
recovery since Q2 2020 which was significantly impacted by the
COVID 19 pandemic;
- an increase in agricultural sales from market growth amplified
by global market share growth in all core products; and
- an increase in market share for booms in Europe and Asia; partially offset by
- an unfavourable impact on sales from the changes in foreign
exchange rates from Q2 2020.
Sales for the Mobility segment ("Mobility") increased by
$517.4 million, or 77.9% in Q2 2021
compared with Q2 2020. The sales in Q2 2021 were impacted by:
- additional sales primarily due to market recovery since Q2 2020
which was significantly impacted by the COVID-19 pandemic; and
- an increase in sales related to launching programs; partially
offset by
- a sales decline primarily attributed to adverse conditions
associated with semi conductor supply related issues; and
- an unfavourable impact on sales from the changes in foreign
exchange rates from Q2 2020.
___________________
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").
|
The Company's normalized operating earnings for Q2 2021 was
$152.2 million. This compares to
normalized operating loss of $19.4 million in Q2 2020, an increase of
$171.6 million.
Industrial segment normalized operating earnings in Q2 2021
increased $29.8 million, or 81.6%
from Q2 2020. The Industrial normalized operating earnings results
were predominantly driven by:
- an increase in access equipment volumes;
- an increase in agricultural sales; and
- a reversal of provisions for receivables that were collected
within the quarter; partially offset by
- a reduction in the utilization of Government support programs
related to the global COVID-19 pandemic;
- an unfavourable impact on sales and expenses from the changes
in foreign exchange rates from Q2 2020; and
- an increase in material and freight costs associated with
ongoing supply chain issues.
Q2 2021 normalized operating earnings for Mobility were higher
by $141.8 million, or 253.7% compared
to Q2 2020. The Mobility segment's earnings were impacted by the
following:
- additional sales primarily due to market recovery since Q2 2020
which was significantly impacted by the COVID-19 pandemic; and
- an increase in sales related to launching programs; partially
offset by
- a sales decline primarily attributed to adverse conditions
associated with semi conductor supply related issues;
- a reduction in the utilization of Government support programs
related to the global COVID-19 pandemic; and
- an unfavourable impact on sales and expenses from the changes
in foreign exchange rates from Q2 2020.
"Market demand is strong, helping to drive an excellent recovery
for us at Linamar." said Linamar CEO Linda
Hasenfratz, "Market pressures from supply chain shortages
are creating challenges but we are managing them and at the same
time growing market share and generating cash. We are confident in
a sustained period of excellent market demand once the supply chain
issues are resolved."
Dividends
The Board of Directors today declared an eligible dividend in
respect to the quarter ended June 30,
2021 of CDN$0.16 per share on
the common shares of the company, payable on or after September 10, 2021 to shareholders of record on
August 23, 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
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.
Q3 2021 Release Information
Linamar will hold a
webcast call on November 9, 2021, at
5:00 p.m. ET to discuss its third
quarter results. The event will be simulcast and can be accessed at
the following URL
https://www.linamar.com/news-event/q3-2021-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
3374269, 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 November
9, 2021, and at www.sedar.com by the start of business on
November 10, 2021. The webcast replay
will be available at
https://www.linamar.com/news-event/q3-2021-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
November 9, 2021, for seven days. The
number for the replay is (800) 585-8367 or (416) 621-4642,
Passcode: 3374269. In addition, a recording of the call will be
posted at
https://www.linamar.com/news-event/q3-2021-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 26,000
employees in 60 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
August 11, 2021
SOURCE Linamar Corporation