18.08.2004

Skyjack reports 84 percent sales increase

Linamar, owner of Skyjack Inc has reported second quarter and first half results for the year to June 30 2004. Skyjack Sales for the fist six months jumped by over 84 percent to C$121.4 million (£50.9/US$93 million). Net earnings for the aerial lift producer improved from a loss of C$11.9 million (£5/US$9.1 million) to a profit of C$4.1 (£1.7/US$3 million) for the same period.

Sales in Europe were approximately C$18.5 million £7.8/US$14.2 million).

Frank and Linda Hasenfratz, Linamar Chairman and main board director, commented; “SkyJack continued to post strong sales growth in the second quarter of 2004 compared to the same period in 2003, building on similar results in the previous two quarters. For the near term, this market trend appears to be continuing. However, this market is very competitive and price pressure is severe. Skyjack remains one of the leading companies in the elevated work platform market and is continuing to develop its European and North American markets”.

Skyjack has undergone extensive changes in the way it produces product, focusing efforts on reducing costs and altering the manufacturing strategy from one of a complete component manufacturer to a design, assembly, marketing and distribution strategy. The company claims that this has contributed to the noted improvements in the company’s results.

The company also states “Sales of aerial lift platforms and replacement parts grew strongly in both the current quarter and year to date, It is also anticipated that the market for Skyjack
products will continue to rebound in the near term as the construction equipment market improves in the next few years, continuing the improvements that began in 2003. However, the market in which Skyjack operates is highly competitive and has an excess of production capacity for those products”.

The Linmar group result for the firs half show revenues of C$904 million (££378/US$692 million), an increase of 21 percent on 2003. Net earnings were C$74 million (£31/US$56.6 million) an increase of 56 percent on last year. The group retained its hard nosed reputation holding SGA costs to the same level as 2003.