Skyjack Parent Company Announces Fourth Quarter Results
March 9, 2007 • Linamar Corp., parent company of Guelph, Ontario-based Skyjack, announced its financial results for the fourth quarter that ended Dec. 31, 2006. Sales growth in the industrial group, which includes Skyjack aerial work platforms, continued very strong with $87.3 million in sales for the fourth quarter of 2006 • up $16.4 million, or 23 percent, when compared to the fourth quarter of 2005. Linamar reported the growth in sales was a reflection on the continued demand for Skyjack's AWPs.
Operating earnings for the industrial group improved significantly during the quarter to $2.01 million, or 23 percent of sales, compared to $10.9 million, or 15 percent of sales, a year earlier. The improvement reflects on mix and reduction of expenditure on research and development on the boom lift product, compared to the same period in 2005.
Sales in Linamar's other operational segment, the powertrain/driveline group, were virtually flat over the fourth quarter in 2005. According to Linamar, “Without the exchange effect of the stronger Canadian dollar, sales for the quarter would have been $5.8 million higher over the same quarter in 2005; this would have resulted in an overall sales increase of 2.1 percent.” Growth was largely driven by heavy duty programs and ongoing growth in cylinder head and block and camshaft programs in the German subsidiary. Sales were largely offset by foreign exchange as noted above, overall pricing pressures in North America, and an overall reduction in vehicle production in
Operating earnings for the powertrain/driveline group were significantly lower in the fourth quarter of 2006 at $15.5 million, or 3.4 percent of operational segment sales, as compared to $33.3 million, or 7.4 percent of operational segment sales, a year earlier. The reduction was due to non-variable cost burdens in North America associated with OEM shutdowns/reduced volumes commencing during the third quarter of 2006 and slower than expected ramp-ups particularly in six-speed transmission, ongoing start-up costs in Asia Pacific, pricing and other productivity givebacks, and asset impairment charges recognized in the fourth quarter. This was somewhat offset by improved results in
In other news, Linamar Corp. announced its chief financial officer, Peggy Mulligan, has resigned for personal reasons. Her resignation will take effect on March 31, 2007. The company will immediately begin searching for her replacement. Mulligan will continue to provide support during the transition.
