05.05.2016

Skyjack slips

Skyjack owner Linamar has released first quarter results which show a slow down in revenues and a slump in profitability.

Total revenues fell 5.5 percent to $203.6 million as a result of continued investment procrastination by major US rental companies, partially offset by higher telehandler and boom sales. It should also be remembered that the first quarter 2015 was almost 20 percent higher than in the same period if 2014.

Operating profits plunged almost 37 percent to $28.1 million, due to lower margins on telehandlers and booms, higher sales costs and the write off/down provision for a bad debt related to a Canadian customer operating primarily in the oil & gas industry.

Chief executive Linda Hasenfratz said: “We are off to a solid start in 2016 with another quarter of record financial results and double digit growth.Markets are in good shape enhancing the key driver of our performance, market share growth. Content per vehicle hit new highs in every region and Skyjack continues to build market share in key products, both are doing a fantastic job of driving our great growth today and will continue to do so in the future.”

Vertikal Comment

We have become so used to Skyjacks numbers being forever higher than a dip, not matter how reasonable is a bit if a shock. However if you look deeper it is reasonable and not something to start panicking about. The other news is that it its market shares for both booms and telehandlers continues to rise and are now looking to be sustainable which should spur further growth.

We would expect the year to improve gradually