09.05.2013

Mixed quarter at Skyjack

The industrial division of Linamar of which Skyjack is the most significant part, saw a 2.7 percent fall in first quarter revenues compared to last year.

Revenues were $137.5 million, due to slower sales in Europe offset by improvements in some developing markets.

However profits at the division more than doubled from $6.5 million last year to $14.3 million this year, thanks to better margins on newly launched models and a better overall product mix.

Linamar as a whole reported record levels of profitability for the quarter, revenues were $846.6 - up around one percent. However pre-tax profits came in over 22 percent higher at $48.4 million.

Chief executive Linda Hasenfratz said: “We are thrilled with our first quarter results, notching another new record in earnings performance. Launches are performing extremely well, our launch book continues to grow and a strong focus on efficiency and productivity is driving fantastic margin improvement. Despite a reasonably flat outlook for global markets our outlook remains extremely positive for double-digit earnings growth in 2013.”

Vertikal Comment

We only wish we had a clearer view of the Skyjack results, but while the company appears to have had a similar first quarter to a number of other access companies in terms of revenues and order intake, it has performed exceptionally well in terms of profitability.

The business still has tremendous growth potential, not just because of its growing range, but also due to the fact that it has a large number of overseas markets that it has yet to penetrate. The company is well placed for future growth.