11.05.2007

Skyjack saves Linamar

Skyjack once the odd ball business in automotive component supplier Linamar’s portfolio, is increasingly becoming the shining star saving the group from the current challenges within the automotive sector.

First quarter sales for the group’s Powertrain division dropped by 6.3 percent compared to last year. This was largely offset by a 26 percent increase in revenues from the industrial business, which is largely Skyjack. Overall Linamar revenues still dipped by around one percent to $579.4 million.

The Industrial division reported sales for the quarter of $129 million driven by strong demand for Skyjack aerial lifts.

The success of Skyjack is reflected in its operating income which increased by almost 98 percent to $25.2 million while the Linamar powertrain division experienced a fall of over 40 percent to $19.6 million. Thanks to Skyjack, the overall group’s operating income was nearly flat dipping by just over one percent.

The group’s net earnings for the quarter improved by almost three percent to $26.7 million (4.6% of sales).

Vertikal Comment

Linamar’s first quarter results should be a source of pride for all employees at Skyjack. The aerial lift business has been an awkward and often reluctant fit within Linamar, and for several years the group appeared to treat it as a poor relation, being almost apologetic for it.
How times have changed and Skyjack is now the hero and clearly a much more welcome member of the group.

You can be sure that principles Frank and Linda Hasenfratz will be very happy to have Skyjack as part of the group this week.
Hopefully this will result in a larger percentage of Linamar’s investment spend goes into Skyjack, spurring on new product development and further investment in facilities.