Linamar Delivers Fifth Consecutive Year of Record Results on Double Digit Top and Bottom Line Growth

GUELPH, ON, March 9, 2016 /CNW/ - (TSX: LNR)

  • Sales increase 24% over 2014 to reach $5.2 billion;
  • Operating earnings increase 33% over 2014 to reach $597.0 million;
  • Net earnings up 36% and earnings per share up 36% over 2014 reaching $436.7 million and $6.71 respectively;
  • Continued business wins drive launch book to nearly $3.8 billion;
  • Industrial segment delivers excellent sales and operating earnings growth with operating earnings up 42% to $156.2 million on a sales increase of 23%;
  • Powertrain/Driveline delivers excellent sales and operating earnings growth as well with operating earnings up 31% to $440.8 million from 2014 on a sales increase of 24%; and
  • Content per vehicle growth in every market and market share growth on booms and telehandlers.

Three Months Ended

Twelve Months Ended

December 31

December 31

(in millions of dollars, except earnings per share figures)

2015

2014

2015

2014

$

$

$

$

Sales

1,243.0

1,003.0

5,162.4

4,171.6

Operating Earnings (Loss)1






Powertrain/Driveline

111.1

87.1

440.8

337.7


Industrial

20.3

14.0

156.2

109.7

Operating Earnings (Loss)

131.4

101.1

597.0

447.4

Net Earnings (Loss)

95.3

71.8

436.7

320.6

Net Earnings (Loss) per Share

1.46

1.11

6.71

4.95

Operating Highlights
Sales for the fourth quarter of 2015 ("Q4 2015") were $1,243.0 million, up $240.0 million from $1,003.0 million in Q4 2014.

Sales for the Powertrain/Driveline segment ("Powertrain/Driveline") increased by $220.6 million, or 25.1% in Q4 2015 compared with Q4 2014.  The sales increase in Q4 2015 was impacted by:

  • higher sales resulting from favourable changes in foreign exchange rates;
  • the acquisition of the forging businesses in Europe in Q1 2015; and
  • significant levels of newly launched programs in North America and Europe.

The Industrial segment ("Industrial") product sales increased 15.8% or $19.4 million to $142.5 million in Q4 2015 from Q4 2014.  The sales increase was due to:

  • higher sales resulting from favourable changes in foreign exchange rates;
  • significant market share growth for booms in North America, Europe and Asia Pacific;
  • market share growth for scissors in Asia Pacific; and
  • market share growth for telehandlers in North America; partially offset by
  • somewhat lower sales for scissors in North America.

The company's operating earnings for Q4 2015 were $131.4 million.  This compares to $101.1 million in Q4 2014, an increase of $30.3 million.

Q4 2015 operating earnings for Powertrain/Driveline were higher by $24.0 million or 27.6% over Q4 2014.  The Powertrain/Driveline segment experienced the following in Q4 2015:

  • improved earnings as production volumes increased on launching programs;
  • higher earnings resulting from favourable changes in foreign exchange rates across multiple currencies and Linamar's growing global presence; and
  • earnings related to the acquisition of the forging businesses; partially offset by
  • increased management and sales costs supporting growth.

______________________________________________
1 For more information refer to the section entitled "Non-GAAP and Additional GAAP Measures" in the Company's separately released Management's Discussion and Analysis ("MD&A").

Industrial segment operating earnings in Q4 2015 increased $6.3 million or 45.0% over Q4 2014. The increase in Industrial operating earnings was predominantly driven by:

  • higher margins resulting from favourable changes in foreign exchange rates;
  • increased volumes as described above; partially offset by
  • increased management and sales costs supporting growth.

"We are thrilled to deliver another record year on sales and earnings at Linamar, our fifth consecutive year of doing so," said Linamar CEO Linda Hasenfratz.  "Financially we again saw strong, industry leading double digit top and bottom line growth.  Strategically, we have made enormous progress in 2015 in our vertical integration strategy, successfully acquiring or joint venturing with three world leading forging and aluminum casting companies.  We are perfectly positioned for continued exciting market share growth driving continued exceptional performance in 2016 and beyond."

Dividends
The Board of Directors today declared an eligible dividend in respect to the quarter ended December 31, 2015 of CDN$0.10 per share on the common shares of the company, payable on or after April 15, 2016 to shareholders of record on April 1, 2016.

Forward Looking Information, Risk and Uncertainties

Linamar no longer provides a financial outlook.

Certain information provided by Linamar in this press release, MD&A, the consolidated financial statements and other documents published throughout the year which are not recitation of historical facts may constitute forward-looking statements. The words "may", "would", "could", "will", "likely", "estimate", "believe", "expect", "plan", "forecast" and similar expressions are intended to identify forward-looking statements. Readers are cautioned that such statements are only predictions and the actual events or results may differ materially. In evaluating such forward-looking statements, readers should specifically consider the various factors that could cause actual events or results to differ materially from those indicated by such forward-looking statements.

Such forward-looking information may involve important risks and uncertainties that could materially alter results in the future from those expressed or implied in any forward-looking statements made by, or on behalf of, Linamar. Some of the factors and risks and uncertainties that cause results to differ from current expectations include, but are not limited to, changes in the various economies in which Linamar operates, fluctuations in interest rates, environmental emission and safety regulations, the extent of OEM outsourcing, industry cyclicality, trade and labour disruptions, world political events, pricing concessions and cost absorptions, delays in program launches, the Company's dependence on certain engine and transmission programs and major OEM customers, currency exposure, technological developments by Linamar's competitors, governmental, environmental and regulatory policies and changes in the competitive environment in which Linamar operates.

The foregoing is not an exhaustive list of the factors that may affect Linamar's forwarding looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Linamar's forward-looking statements. Linamar assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

Conference Call Information

Q4 2015 Conference Call Information
Linamar will hold a conference call on March 9, 2016 at 5:00 p.m. EST to discuss its fourth quarter/year end results.  The numbers for this call are (647) 427-3383 (local/overseas) or (888) 424-9894 (North America) confirmation number 68602541, with a call-in required 10 minutes prior to the start of the conference call.  The conference call will be chaired by Linda Hasenfratz, Linamar's Chief Executive Officer.  A copy of the company's quarterly financial statements, including the Management's Discussion & Analysis will be available on the company's website after 4 p.m. EST on March 9, 2016 and at www.sedar.com by the start of business on March 10, 2016.  A taped replay of the conference call will also be made available starting at 7:45 p.m. on March 9, 2016 for ten days.  The number for replay is (855) 859-2056, Conference ID 68602541.  The conference call can also be accessed by web cast at www.linamar.com, by accessing the investor relations/events menu.

Audio only streaming of the conference call available at http://www.icastpro.ca/lin160309

Q1 2016 Conference Call Information
Linamar will hold a conference call on May 4, 2016 at 5:00 p.m. EST to discuss its first quarter results.  The numbers for this call are (647) 427-3383 (local/overseas) or (888) 424-9894 (North America) confirmation number 56698204, with a call-in required 10 minutes prior to the start of the conference call.  The conference call will be chaired by Linda Hasenfratz, Linamar's Chief Executive Officer.  A copy of the company's quarterly financial statements, including the Management's Discussion & Analysis will be available on the company's website after 4 p.m. EST on May 4, 2016 and at www.sedar.com by the start of business on May 5, 2016.  A taped replay of the conference call will also be made available starting at 7:45 p.m. on March 9, 2016 for ten days.  The number for replay is (855) 859‑2056, Conference ID 56698204.

Linamar Corporation (TSX:LNR) is a diversified global manufacturing company of highly engineered products powering vehicles, motion, work and lives. The Company is made up of 2 operating segments – the Powertrain/Driveline segment and the Industrial segment, which are further divided into 4 operating groups – Machining & Assembly, Light Metal Casting, Forging and Skyjack, all world leaders in the design, development and production of highly engineered products.  The Company's Machining and Assembly, Casting and Forging operating groups focus on precision metallic components, modules and systems for engine, transmission, driveline and body systems designed for global vehicle and industrial markets.  The Company's Skyjack operating group is noted for its innovative, high quality mobile industrial equipment, notably its class-leading aerial work platforms and telehandlers.  With more than 23,000 employees in 56 manufacturing locations, 6 R&D centers and 15 sales offices in 17 countries in North and South America, Europe and Asia, Linamar generated sales of $5.2 billion in 2015.  For more information about Linamar Corporation and its industry leading products and services, visit www.linamar.com.  

Guelph, Ontario
March 9, 2016

SOURCE Linamar Corporation

For further information: regarding this release please contact Linda Hasenfratz at (519) 836-7550.

RELATED LINKS
http://www.linamar.com

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