10.08.2011

Skyjack sales double

Linamar, the owner of Canadian lift and telehandler manufacturer Skyjack, has reported a strong first half, with revenues at its Industrial division – of which Skyjack is the largest constituent – more than doubling compared to last year.

Total first half revenues for the Linamar industrial division were $166.3 million – up 112 percent on last year’s $78.4 million. While operating losses were reduced from $9.6 million last year to $1.48 million this year.

The company says that margin improvements due to increased volumes in the access equipment market were partially offset by reductions caused by higher investment in labour and fixed overhead costs at Skyjack to support the future growth in the market.

Sales in the second quarter were even more positive, jumping more than 125 percent to just under $100 million, taking the company into profit with an operating income of $508,000 compared to a loss of $3.3 million in 2010.

Linamar as a whole reported revenues for the six months of $1.4 billion, up more than 31 percent, while pre-tax profits were up marginally to 69.35 million, compared to 68.65 million in the same period of 2010.

Linamar chief executive Linda Hasenfratz said: “We are extremely pleased with our second quarter results which are driving us towards a record year in 2011. Sales and earnings are up substantially again in double digits despite flat global vehicle markets, content per vehicle is growing in every global centre and we continue to see great opportunities in the vehicle market place as evidenced by our considerable launch book that just keeps growing. And of course we couldn’t be more pleased to see our Industrial segment at long last reach a profitable position after a long period of losses.”

Vertikal Comment

Skyjack is doing very well at the moment and pushing hard to complete its product line and increase its production capability. It is though also hedging its bets on a slower pace of growth in the second half by allowing its the contracts of 100 temporary 'seasonal' employees that have helped in the ramp up to lapse.

The company was the first aerial lift manufacturer to cut back when the market began to look shaky in 2008, does it know know something that the rest of us don't or is it being overcautious this time round?

Time will tell.