07.03.2009

Skyjack drops 14%

Linamar, owner of Canadian based telehandler and aerial lift manufacturer Skyjack, has published its full year 2008 results. Its industrial division which is largely Skyjack, reported a fall in full year revenues of 14.3 percent to c$444 million. However this masks a 46 percent fall in revenues during the fourth quarter to c$55 million.

Skyjack operating income for the year was c$36.3 million – down 46 percent on 2007. In the fourth quarter profits dropped 87.7 percent to just over a $ million.

The company says that in addition to falling demand, there was a shift in scissor sales from larger IC powered models to smaller electric units, while the addition of booms and telescopic handlers helped provide some additional revenues.

Linamar

The Linamar group which is largely focussed on the automotive component market, reported annual sales of c$2.3 billion down just over one percent on 2007. While revenues for the fourth quarter declined just under 10 percent to c$477 million.

Pre- Tax profits for the year were down just over 45 percent to c$86.2 million while in the fourth quarter they declined from a loss of c$573,000 in 2007 to a loss of c$10.7 million last year.

Acquisitions

The company also revealed that it paid c$1.5 million for Swedish distributor Liftenik, comprising c$900,000 in debt and c$583,000 in cash. See Skyjack moves into Sweden-click here

It also confirmed that the total price it paid for telehandler manufacturer, Carelift, was c$33 million - c$24 million in cash and c$9 million in debt.
See Skyjack moves into telehandlers – click here

Both acquisitions were made during the third quarter of 2007.

In 2008 Linamar acquired the Ingersoll Rand branded telehandler business from Volvo construction for a total consideration of c$11.5 million.

Vertikal Comment

All in All this is a surprisingly good set of results from Linamar, given the daily dire news concerning the automotive sector. The same is true of Skyjack, although the addition of more activities into the industrial division of Linamar is beginning to ‘cloud the waters’ a little on the Skyjack numbers.

Skyjack appears to have held up slightly better than its two main North American competitors, but this is probably due to the acquisitions beginning the kick in. In spite of being part of a large group, Skyjack has a significantly lower middle management overhead than the other two and appears to be more nimble in its decision making. If Linamar maintains its full support, and there is no sign that it will not, Skyjack could be a net beneficiary of this recession.

The company is quietly putting together a solid line of boom lifts to complement its scissor lift range, while building the distribution for its North American telehandler line.

Add this to the fact that it is developing a strong reputation of being easy to deal with – and more customer focussed than some of its big competitors and who knows where it might go in terms of market share?