07.03.2012

Skyjack division doubles revenues

The industrial division of Linamar, of which Skyjack is the largest part, more than doubled its revenues in 2011.

Total revenues for the industrial division were c$326.5 million a 115 percent increase from last year’s $153.2 million. Most of the increase is credited to the on-going growth in sales of Skyjack aerial lifts.

In spite of the boost to sales, the division did not make it back into the black, losing $6.8 million, compared to a loss in 2010 of $26.6 million. The losses though were due to launch costs associated with a new energy business and “margin reductions as a result of continued investment in labour and fixed overhead costs at Skyjack to support the future growth in the market.”

The fourth quarter saw similar strong gains with revenues up 104 percent to $71 million and a loss of $3.9 million.

The group as a whole saw revenues rise by almost 30 percent to $2.86 billion, while net earnings were up 20 percent to $106 million. – Full financials have not yet been published.

Chief executive Linda Hasenfratz said: “We are very pleased with our fourth quarter and full year results for 2011, a record sales year for Linamar. Sales and earnings are up substantially again in excess of company goals of 15 percent annually, despite slow growth in global markets, margins are expanding and we continue to see great opportunities in the marketplace that are driving our continued growth in the future. I have never felt more positive about our outlook.”

Vertikal Comment

This looks like another great quarter for Skyjack, although we do not yet have access to a full set of financials. The company is now well placed to benefit from the improving market and and lengthening lead times from competitors, as it introduces more new booms.

While it has some way to go it looks as though it is gaining ground on Haulotte and who knows, in a couple of years or so it may well catch up and take the number three spot?