09.03.2007

Linamar profits slip

The parent company of Canadian based aerial lift producer Skyjack, has posted its final numbers for 2006. Revenues, which are reported in Canadian dollars and increased by 4.7 percent to C$2.26 billion ($1.9 billion)

Gross margins slipped back by almost four percent to C$270 million ($229 million) or 11.9 percent of sales, compared to nearly 13 percent in 2005.

This had a negative effect on operating earnings but at the bottom line Net after tax earnings came in within half a percentage point of 200 at C$99.5 million/ ($84 million).

Skyjack contrasted sharply with most of Linamar’s automotive businesses reporting sales in Canadian dollars up 27 percent to C$371 million ($314 million)*.

Skyjack shipments increased by more than the numbers suggest, due to the strength of the Canadian dollar downplay its US dollar revenues. In dollar terms sales rose by 35 percent. Linamar says that demand in the USA continues to be strong and that the company had gained market share.

Operating income at Skyjack leapt by 55 percent to just under C$60 million ($50.6 million) according to the company “The improvement primarily reflects the product mix and a reduction of expenditure on research and development on the “boom” product compared to the same period in 2005”.

*Linamar Industrial division

On publication of its results Linamar also announced the resignation of its chief financial officer, Peggy Mulligan. Who only joined the company in November 2005 following the resignation of Keith Wettlaufer two months earlier
See Mulligan resigns
See Wettlaufer resigns