GUELPH, ON, Nov. 9, 2021 /CNW/ - (TSX: LNR)
- Free cash flow1 was $223.9
million for the third quarter of 2021 ("Q3 2021") continuing
the company's excellent balance sheet management;
- Liquidity, measured as cash and cash equivalents and available
credit as at September 30, 2021, is
$1.8 billion an increase from
$1.3 billion at September 30, 2020;
- During Q3 2021, the Company experienced modest sales growth
versus the third quarter of 2020 ("Q3 2020");
- Industrial segment sales up 45% and normalized operating
earnings up 50% compared to Q3 2020:
-
- Strong access equipment sales from the market recovery and
market share growth for certain targeted products and regions;
and
- Increased agricultural sales from market growth amplified by
global market growth in all core products.
- Mobility segment continues to experience adverse conditions
associated with semi conductor supply related issues leading to a
sales decline;
- Strong content per vehicle in all regions from launching
business and content on prioritized vehicles; and
- New business wins grow strong launch book to more than
$3.7 billion, more than 22% year to
date new business wins for electrified vehicles.
|
Three Months
Ended
|
Nine Months
Ended
|
September
30
|
September
30
|
(in millions of
dollars, except per share figures)
|
2021
|
2020
|
2021
|
2020
|
$
|
$
|
$
|
$
|
Sales
|
1,645.0
|
1,637.4
|
5,002.1
|
4,110.7
|
Operating Earnings
(Loss)
|
|
|
|
|
Industrial
|
70.0
|
41.2
|
179.4
|
108.6
|
Mobility
|
86.2
|
134.9
|
351.7
|
160.2
|
Operating Earnings
(Loss)1
|
156.2
|
176.1
|
531.1
|
268.8
|
Net Earnings
(Loss)
|
108.8
|
125.5
|
370.3
|
166.1
|
Net Earnings (Loss)
per Share – Diluted
|
1.66
|
1.92
|
5.65
|
2.54
|
Earnings before
interest, taxes and amortization ("EBITDA")1
|
260.6
|
288.9
|
854.6
|
597.9
|
Operating Earnings
(Loss) – Normalized1
|
|
|
|
|
Industrial
|
72.9
|
48.7
|
185.1
|
116.6
|
Mobility
|
77.8
|
148.7
|
339.2
|
165.0
|
Operating Earnings
(Loss) – Normalized
|
150.7
|
197.4
|
524.3
|
281.6
|
Net Earnings
(Loss) – Normalized1
|
104.8
|
140.5
|
370.0
|
185.6
|
Net Earnings
(Loss) per Share – Diluted –
Normalized1
|
1.60
|
2.15
|
5.64
|
2.84
|
EBITDA –
Normalized1
|
255.2
|
309.3
|
855.8
|
615.4
|
Operating Highlights
Sales for Q3 2021 were $1,645.0
million, up $7.6 million from
$1,637.4 million in Q3 2020.
The Industrial segment ("Industrial") product sales increased
45.4%, or $135.5 million, to
$433.9 million in Q3 2021 from Q3
2020. The sales increase was due to:
- additional access equipment sales primarily due to market
recovery since Q3 2020 which was significantly impacted by the
COVID-19 pandemic;
- market share growth in access equipment for certain targeted
products and regions; and
- an increase in agricultural sales from market growth amplified
by global market share growth in all core products; partially
offset by
- an unfavourable impact on sales from the changes in foreign
exchange rates from Q3 2020.
Sales for the Mobility segment ("Mobility") decreased by
$127.9 million, or 9.6% in Q3 2021
compared with Q3 2020. The sales in Q3 2021 were impacted 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 Q3 2020; partially offset by
- additional sales for launching programs and increased volumes
for certain programs that the Company has significant business
with; and
- increased sales related to material pass through pricing
offsetting the associated raw material increases.
_______________________________
|
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 Q3 2021 was
$150.7 million. This compares to
normalized operating earnings of $197.4 million in Q3 2020, a decrease of
$46.7 million.
Industrial segment normalized operating earnings in Q3 2021
increased $24.2 million, or 49.7%
from Q3 2020. The Industrial normalized operating earnings results
were predominantly driven by:
- an increase in agricultural sales; and
- an increase in access equipment volumes; partially offset
by
- an increase in labour, material and freight costs associated
with ongoing supply chain issues;
- an unfavourable impact from the changes in foreign exchange
rates from Q3 2020; and
- a reduction in the utilization of Government support programs
related to the global COVID-19 pandemic.
Q3 2021 normalized operating earnings for Mobility were lower by
$70.9 million, or 47.7% compared to
Q3 2020. The Mobility segment's earnings were impacted by the
following:
- 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;
- an unfavourable impact from the changes in foreign exchange
rates from Q3 2020; and
- an increase in energy and freight costs associated with ongoing
supply chain issues; partially offset by
- additional sales for launching programs and increased volumes
for certain programs that the Company has significant business
with.
"There are certainly challenges we are facing in markets today
but we are managing them and still expect to see double digit top
and bottom line growth this year." said Linamar CEO Linda Hasenfratz, "Cash flow is excellent
allowing us to increase the dividend and commence the process to
launch a buyback for our shareholders. We see significant
opportunities out there for growth, and with continued strong
market demand, we envision a solid future for us as supply chain
challenges ease in coming quarters."
Dividends
The Board of Directors today declared an eligible dividend in
respect to the quarter ended September 30,
2021 of CDN$0.20 per share on
the common shares of the company, payable on or after December 3, 2021 to shareholders of record on
November 22, 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
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/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/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/event/q3-2021-earnings-call.
Q4 2021 Release Information
Linamar will hold a
webcast call on March 9, 2022, at
5:00 p.m. ET to discuss its fourth
quarter results. The event will be simulcast and can be accessed at
the following URL
https://www.linamar.com/event/q4-2021-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 7163205, 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 March 9, 2022, and at
www.sedar.com by the start of business on March 10, 2022. The webcast replay will be
available at https://www.linamar.com/event/q4-2021-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 March 9, 2022, for seven
days. The number for the replay is (800) 585-8367 or (416)
621-4642, Passcode: 7163205. In addition, a recording of the call
will be posted at
https://www.linamar.com/event/q4-2021-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 on and
off highway vehicle markets. The Mobility segment products are
focused on both systems and components for new energy powertrains,
body and chassis, driveline, engine, and transmission systems of
these vehicles. McLaren Engineering, the global engineering
division of Linamar, provides full-service technical capabilities
for the Mobility segment, including design, development, and
testing services. The newly formed eLIN Product Solutions Group
focuses on developing electrified products concentrating on four
key areas: Power Generation, Energy Storage, Propulsion Systems,
and Structural & Chassis offerings for electrified vehicles in
all of Linamar's businesses globally. Linamar has over 25,000
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.
SOURCE Linamar Corporation