07.03.2013

Profit boost at Skyjack

The industrial division of Linamar, which is dominated by Skyjack, was back in the black in 2012.

The division saw revenues for the full year rise over 47 percent to $480.7 million, while the business turned last year’s $6.8 million loss into a profit of $22.7 million for the year, its first annual profit since 2008.
Due says the company to margin improvements on the increased volumes at Skyjack, a stronger US dollar and euro which helped turn last year’s exchange loss into a gain, and lower start-up costs at its energy business. The turnaround cam in spite of higher development and investment costs at Skyjack.

Looking at the fourth quarter revenues at the industrial division improved by a more modest 25 percent to $88.8 million, while last year’s loss of $3.9 million was converted into a $300,000 profit.

Linamar as whole achieved record revenues of $3.2 billion up 12.6 percent on 2011, while pre-tax profits were up around 50 percent to $188.2 million.

Chief executive Linda Hasenfratz said: “We are very pleased to see 2013 close as a record year on all counts. Earnings growth continues to outpace sales growth by a significant factor, our balance sheet continues to strengthen positioning us well for continued growth and investment and we continue to see great improvements in ROCE and ROE. Our team has worked together to deliver fantastic results and the future looks great for us here at Linamar!”

Vertikal Comment

Skyjack continues to go from strength to strength as the North American market continues to pick up, while maintaining its position in its strongest overseas markets. It is still heavily reliant on scissor lift sales, but is building up a strong boom product line which more buyers are becoming familiar with.

Its key strength however is that is has a strong reputation as being a company that is easy to deal with and very open. If it can gain more penetration in the boom lift market it stands a real chance of taking over the number three spot behind JLG and Genie.