09.11.2017

Skyjack revenues near $1 billion

Linamar has announced its results for the nine months to the end of September with Skyjack on track for its first billion dollar year.

Linamar’s Industrial division, which is predominantly Skyjack, saw revenues for the nine months jump another 26 percent to c$908.3 million, thanks to higher unit volumes and higher sales of larger platforms and telehandlers. As a result the company will record its first billion dollar year in 2017, certainly in terms of Canadian dollars, but it will also come very close to scoring its first US$ billion dollar year, depending on what the exchange rate does and how well the fourth quarter goes. Operating profits for the nine months increased by a more modest 11 percent to $133.6 million.

Moving on to the third quarter, sales were 14.1 percent higher at $260 million, thanks to strong market share gains and increased volumes for booms in North America, Europe and Asia. And telehandlers in North America and scissor lift market share gains in Asia, partially offset by unfavourable changes in foreign exchange rates. Operating profit however slipped almost 15 percent to $33.8 million, due says the company to exchange rate losses- compared to gains in the same quarter last year, lower margins on new products, products and customer mix and higher sales and management costs as the company expands.

Linamar as a whole saw revenues were seven percent higher at $4.9 billion with net profits two percent higher at 414 million.

Linamar chief executive Linda Hasenfratz said: “We have had another strong quarter at Linamar despite soft North American vehicle markets. Launches are driving sales up in the Powertrain/Driveline segment to more than offset a down North American market and earnings will of course follow. Our Industrial segment continues to power along taking market share and is surpassing industry growth levels. We continue to generate cash to position ourselves positively for future growth and continue to see new business wins at a blistering pace.”

Vertikal Comment

A truly excellent result in terms of revenue growth, although the company will be somewhat concerned over the profitability issue in the third quarter. However as volumes of its larger models continue to rise it is most likely that margins on these products will improve too.

The fact is that the company has in recent years taken some risks to keep its production supply lines well stocked with forward orders for components etc.. in order to be able to react to the current upsurge in demand.

It has also - more importantly - retained production slots and built machines for inventory, during uncertain times. So that it was in a position to offer buyers short lead times, helping it win additional business and in some cases achieve better prices, as the only company able to delivery some models at short notice.
The latest numbers show how the company has firmly cemented its position among the top five manufacturers in terms of unit volume.

Vertikal Comment

A truly excellent result in terms of revenue growth, although the company will be mildly concerned over the profitability issue I the third quarter. However as volumes of its larger models continue to rise it is most likely that margins on these products will improve too.

The fact is that the company has in recent years taken some risks to keep its production supply lines well stocked with forward orders for components etc.. in order to be able to react to the current upsurge in demand.
It has also - more importantly - retained production slots and built machines for inventory, during uncertain times. So that it was in a position to offer buyers short lead times, helping it win additional business and in some cases achieve better prices, as the only company able to delivery some models at short notice.
The latest numbers show how the company has firmly cemented its position among the top five manufacturers in terms of unit volume.

Vertikal Comment

A truly excellent result in terms of revenue growth, although the company will be mildly concerned over the profitability issue I the third quarter. However as volumes of its larger models continue to rise it is most likely that margins on these products will improve too.The fact is that the company has in recent years taken some risks to keep its production supply lines well stocked with forward orders for components etc.. in order to be able to react to the current upsurge in demand.

It has also - more importantly - retained production slots and built machines for inventory, during uncertain times. So that it was in a position to offer buyers short lead times, helping it win additional business and in some cases achieve better prices, as the only company able to delivery some models at short notice.

The latest numbers show how the company has firmly cemented its position among the top five manufacturers in terms of unit volume.