15.08.2013

Growth continues at Skyjack

Linamar’s Industrial division of which Skyjack is the largest constituent, has reported a strong first half performance.

The Industrial division had six months revenues of $320.3 million, up 10.5 percent on last year, operating income for the same period jumped 82.8 percent to $39.3 million due to higher access sales, offset by lower sales of other products in the division.

Looking at the second quarter revenues were up 23.1 percent, to $182.9 million thanks to the Access business, Operating income in the quarter improved 66.7 percent to $25 million.

Linamar as a whole, saw group revenues rise six percent to $1.78 billion, while pre-tax profits improved over 35 percent to 145.7 million. Predominantly driven by margin improvements on new products, along with productivity and efficiency improvements.

Chief executive Linda Hasenfratz said: “We are thrilled to register another solid quarter of record sales and earnings and solid free cash flow. Margins and returns are at a high not seen for a decade, our order book remains strong with many more opportunities on the horizon and our international growth plans are evolving solidly as well. It was a great quarter delivered by a great team working hard to continually deliver great results.”

Vertikal Comment

While we cannot see any details of the Skyjack performance, it is obvious that the business is going from strength to strength after a slow first quarter. The company has developed a reputation to be easy to deal with while offering good customer support and it is now also beginning to see the real benefits from its broader product line.

The business continues to do well and looks to have carved out a decent place for itself in the boom and mast type lift market. The company will be closely monitoring the outcome of the current Snorkel sale.