13.11.2011

123% boost at Skyjack

The Industrial division of Linamar, of which Skyjack is the largest constituent, has posted a 123 percent increase in third quarter revenues.

For the nine months to the end of September the Industrial division had revenues of c$255.5 an increase of almost 116 percent on the same period last year. For the same period the operating loss was reduced from $16.6 million last year to $3 million this year.

In the third quarter revenues jumped 123 percent to $89.3 million, due primarily “to significant increases in demand in access equipment markets resulting from fleet replacement initiatives”.
At the same time the division’s operating loss was reduced to $1.5 million from $7 million last year, “predominantly driven by margin improvements on increased volumes in the access equipment market and to some extent the European Fabrication business, partially offset by margin reductions as a result of continued investment in labour and fixed overhead costs at Skyjack to support the future growth in the market.”

Linamar as a whole reported sales of $2.14 billion – up over 31 percent on last year, while net profits rose 18 percent to $78 million.

Chief executive Linda Hasenfratz said: “We are thrilled with our third quarter results which are driving us towards a record year in 2011. Sales and earnings are up substantially again in double digits despite slow growth in global vehicle markets, margins are expanding, content per vehicle is again 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. ”

Vertikal Comment

Linamar announced these results on Wednesday last week, but has yet to post the full results on its website, so our view is somewhat limited. However this is another positive set of numbers, the net results of which hide the fact that Skyjack is currently winning more than its fair share of new scissor lift business. Accelerated expenditure on new boom lift models and upgrades to its telehandler range is depressing earnings, but the company is right to push to flesh out its boom line now, in order to ensure that it has a wider product offering early in the upturn and in order to benefit from longer boom lift lead times that are sure to be a factor in 2012 and 2013.