15.05.2018

Positive quarter for Skyjack

Skyjack parent Linamar has reported first quarter results, with sales in its Industrial division, of which Skyjack is a major constituent, increasing 38.6 percent to $397.5 million.

Some of this increase will have come from the MacDon acquisition which has been placed into the Industrial division alongside Skyjack. But it is also due to higher Skyjack boom lift sales in North America, Europe and Asia, with the company reporting market share gains in this sector and higher sales of telehandlers in North America, partially offset by an unfavourable exchange rate impact, lower scissor lift sales in Europe as “certain key customers” shifted first quarter deliveries to the second quarter. The company is currently deliver a 3,000 unit order to Boels.

Meanwhile the company says that market share for scissor lifts slipped in Asia as increased sales occurred in countries where Skyjack is not currently active. Operating earnings jumped 63.1 percent $74.7 million, due to higher aerial lift volumes, but also the addition of MacDon.

Linamar overall saw revenue rise by 14.4 percent to $1.89 billion, while pre-tax profits 7.5 percent to $202.9 million.

Chief executive Linda Hasenfratz said: “We are thrilled with another quarter of record sales growing in double digits and record levels of content per vehicle in every region. We are particularly happy to see double digit operating earnings growth as well despite lower markets in North American automotive and unfavourable exchange rate changes. The key to continuing our strong performance is an intense focus on new business wins which we are delivering on in spades in the most opportunistic sourcing environment in the automotive sector we have ever seen. Concurrently excellent growth opportunities in robust markets for our Skyjack and MacDon businesses is painting an excellent picture of global prosperity for Linamar in the future.”

Vertikal Comment

Sadly, the addition of the MacDon business to Linamar's Industrial division is clouding our picture of Skyjack, as we predicted it would. We do know that the company did quite well, but it will certainly have concerns about the delivery postponements, which in the past have signalled the start of a slowdown.

Having said this Skyjack had a scissor lift market share in many parts of Europe that was always going to be hard to sustain. The success of Dingli in some markets, not to mention the arrival of JCB and GMG which would have nibbled away some business here and there, and JLG’s launch of its new, more credible R series, Snorkel’s ongoing progress and Haulotte’s AC drive models would all have had some impact, although this is not mentioned as a factor in the results.

Skyjack still has much potential in the boom lift market, and for scissor lifts in some markets where it has not yet made a significant impact. It is also likely to remain a market leader in those countries where it is out in front, thanks to the fact that it holds inventory, can deliver quickly and is easy to work with.

It would be nice if Linamar split its Industrial division by creating an Agricultural division.