07.08.2015

Further gains for Skyjack

Skyjack parent Linamar has reported its half year results, which show that the aerial lift manufacturer had another sparkling quarter

First half revenues at the group’s Industrial division, which is largely Skyjack, increased almost 25 percent to $499.6 million, while operating profits jumped almost 45 percent to $98.9 million.

The trend was pretty much the same for the second quarter, with revenues of $284.1 million - almost 29 percent up on the same quarter last year. Operating profits increased 44 percent to $54.6 million.
The company said that sales increased in North America, Europe and Asia as it gained market share for both its booms and scissor lifts. The business was also helped by favourable exchange rates.

Linamar as a whole achieved revenues for the half year of $2.65 billion an increase of 23 percent on the same period last year, while pre-tax profits jumped 39 percent to $312 million.

Chief executive Linda Hasenfratz said: “We have completed another outstanding quarter at Linamar with solid market share gains again driving record levels of sales and earnings. Financially we saw double digit sales and earnings growth in line with goals and have once more improved our margin performance".

"Strategically, we initiated our light metal casting strategy with our announced global partnership with GF Automotive. Our diversification strategy continues to deliver outstanding opportunities in a variety of markets, processes and products driving consistent sustainable growth for us. We are excited by what our team is achieving and what the future holds.”

Vertikal Comment

Skyjack continues to outpace its main competitors in terms of percentage growth, as its boom lift sales gather momentum and it adds more models to ots product line-up. The company has based its business model on being easy to deal with and flexible, something that appeals particularly to the small to medium rental companies, which have probably been more aggressive with their fleet expansion and replacement activities over the past few months, but also to the national players and their regional staff.

If the company can maintain this sort of pace over the next year or two, it will soon start to rival the two major players in the market. It is certainly leaner and more flexible than they are - at this stage, the secret though will be to maintain that flat easy going organisation while more than doubling or trebling in size. Quite a challenge for anyone.

In the meantime an excellent set of numbers.