03.11.2016

Stronger quarter for Skyjack

Skyjack has reported a solid improvement in third quarter revenues and profitability.

Total revenues for the nine months to the end of September were $721.7 million, just 1.5 percent up on the same period last year. Operating profits are down over 11 percent at $135.9 million. All due to a weak first half.

The third quarter showed considerable improvement, with revenues increasing 8.5 percent to $228.1 million thanks strong scissor sales in Asia and North America, and strong telehandler sales in North America; partially offset by lower boom lift sales in North America. Operating profits were 7.6 percent higher at $39.7 million, thanks to a better product mix, improved productivity and higher volumes.

Linamar chief executive Linda Hasenfratz said: “2016 is shaping up to be another record year of double digit top and bottom line growth. We saw another fantastic quarter in the third quarter and we feel confident in our ability to continue to grow. Business wins are at a record level, we are rapidly delivering the balance sheet thanks to solid cash flow and we continue to see great growth opportunities globally.”

Vertikal Comment

Skyjack is pushing hard to maintain the rapid growth levels of recent years and continue to close the gap with the two market leaders. It has outpaced others in in recent years and gained market share by being an openly friendly business that is 'easy to deal with' with empowered employees and a lighter 'corporate touch'. Maintaining these qualities while expanding rapidly within a public company can be very challenging.

But with other manufacturer’s, such as Snorkel and Dingli, increasingly gaining traction in developed markets - not to mention a resurgent Haulotte and some strong and growing players such as Niftylift and Manitou - Skyjack needs to ensure that it maintains the culture and policies that have taken it from an ‘also ran’ manufacturer to one of the top three global producers.

Plans to further broaden the product line will also help of course, as will further geographic expansion. It also has the potential to take market share from others. So all in all there is plenty more to go for.

All in all this is a very encouraging set of numbers, which should see the company achieve another record year in 2016, at least in terms of revenues.