08.08.2007

Skyjack earnings up 75%

Linamar, the parent company of Skyjack, has reported first half 2007 results with revenues and net earnings roughly flat compared to the same period in 2006.

However these headline numbers hides a sparkling performance by SkyJack which managed to fully offset a decline in the groups automotive/powertrain sector.

Linamar does not break out exact revenue numbers for Skyjack at this stage, but says that strong demand for Skyjack scissor and boom lifts boosted aerial lift revenues for the first half by $59 million ($56 million).
Full year 2006 sales for Skyjack were C$371 million ($314 million).

The story improves with operating profits at the Skyjack jumping by 75 percent to $43.6 million ($41.3 million). - Full year 2006 profits at Skyjack were C$60 million ($50.6 million)

Vertikal Comment

Skyjack is benefiting not only from bouyant markets in countries where it has traditionally been strong, but it is also reaping the beneifts of being easier to deal with than the two big American producers.

As Genie and JLG become ever larger busineses they almost inevitably become more 'corporate' in the way that they deal with customers, particularly smaller less 'well heeled', rental companies.

SkyJack has a strong reputation in many markets for being easy to deal with and has thus become a significant supplier to a number of small to medium sized companies that might previously have been Genie or JLG customers.

As consolidation gathers pace in Europe small to medium companies are taking a larger percentage of total new lift shipments than in the past.

Skyjack is certain to exceed $400 million in revenues this year keeping it well ahead of the merged UpRight/Snorkel but also well behind Haulotte the markets number three producer.

Skyjacks challenge will be to maintain the growth at this pace keeping up with Haulotte and ahead of UpRight. To do so it needs to continue to increase its customer base and geographic spread, as well as successfully launch its new booms while keeping its all important scissor lift range fresh.