02.09.2008

Skyjack holds steady

First half revenues at the Industrial Segment of Linamar, which is largely Skyjack, were C$281 million ($263 million), marginally up on the same period in 2007. Operating income however slipped 24 percent to C$32 million ($30 million).

The fall in profits is, says the company, is due to lower sales in Europe, which typically carry better margins, sales mix, with a higher proportion of small, less profitable scissor lifts sold, and lower margins on the new booms and telehandler models as production is ramped up and efficiencies applied.

Higher Research and Development costs for the accelerated new product programme, plus higher costs to market the new ranges also eroded profitability. The strength of the Canadian dollar may also have been a factor, although the company does not refer to it.

Overall the group performed well, with revenues up around three percent and net profits up by almost six percent. This is particularly impressive considering the state of the automotive sector with is Linamar’s main business.