06.11.2015

Skyjack powers ahead

Skyjack parent Linamar has published its third quarter results which shows another very strong quarter for the aerial lift and telehandler manufacturer.

In the nine months to the end of September, the Industrial division of Linamar, which is mostly Skyjack, posted a 25 percent increase in revenues to $709.7 million. At the same time operating profits jumped 42 percent to $135.9 million.

Moving on the third quarter, revenues were $210.2 million, almost 25 percent higher than in the same quarter last year due to currency factors and the fact that the company managed to increase its share of boom lifts in Europe and the USA and grab a larger share of the North American telehandler market. Operating profits improved almost 35 percent to $36.9 million, due to a number of factors, including currency exchange benefits and better margins from sales of larger models- partially offset by a less favourable product /customer mix and higher sales/management costs.

Linamar chief executive Linda Hasenfratz said: “We are very pleased with another excellent quarter of double digit growth. Financially we again saw strong, industry leading top and bottom line growth, setting us up for another record year. Strategically, we made a big move this quarter with our announcement regarding our intent to bid for the shares of Montupet, an important part of our light metal casting strategy, designed to significantly enhance our cylinder head market share and set us up for excellent growth in the engine segment. We are excited by what our team is achieving and what the future holds.”

Vertikal Comment

Another first class result from Skyjack, at a time when many competitors – both larger and smaller – are reporting a slide in sales and profits. Skyjack is benefiting from having a strong position in some key markets that are growing strongly, while also winning new business in a number of markets that it has not tapped before.
Another key factor is that the company not only makes a good product, but even more importantly is easy to deal with. It does also have the benefit of a favourable exchange rate of course.

The company is now of a size where it is reaching the volume levels for some products that are similar to, or even better than, the big two. It should complete the year on a very positive note, and if it can maintain the pace it will easily cross the symbolically important $billion dollars of revenue threshold next year.