GUELPH,
ON, Nov. 8, 2023 /CNW/ - (TSX: LNR)
Strong financial performance
- Sales up 16.0% to $2.43
billion;
- Normalized Operating Earnings1 up 19.0%; and
- Normalized Earnings per Share1 up 15.7%.
Diversified Strategy Success
- Diversified strategy validated with Industrial earnings up 64%
over the prior year, anchoring solid overall performance; and
- Acquisition of Mobex chassis and suspension business closed and
will drive strong propulsion-agnostic growth.
New Business
- New business wins take launch book to nearly $3.7 billion;
- 74% of Mobility wins are for either propulsion agnostic
components or electrified vehicles; and
- 57% of Mobility wins for electrified vehicles.
- Propulsion agnostic and electrified vehicle sales at nearly 60%
of booked light vehicle sales inside of next 4 years.
Double-Digit Sales Growth in Both Segments
- Sales up 26.8% for Industrial due to solid market share growth
for certain targeted products and regions in both agricultural and
access equipment;
- Sales up 12.3% for Mobility driven largely by launching
programs and sales from our Dura-Shiloh battery enclosures business
acquisition; and
- North American and European content per vehicle hit new record
levels reflective of continued market share growth.
|
Three Months
Ended
|
Nine Months
Ended
|
September 30
|
September 30
|
(in millions of
dollars, except per share figures)
|
2023
|
2022
|
2023
|
2022
|
$
|
$
|
$
|
$
|
Sales
|
2,434.2
|
2,098.1
|
7,279.7
|
5,857.9
|
Operating Earnings
(Loss)
|
|
|
|
|
Industrial
|
130.4
|
84.7
|
375.1
|
145.9
|
Mobility
|
83.9
|
100.7
|
230.2
|
317.4
|
Operating Earnings
(Loss)
|
214.3
|
185.4
|
605.3
|
463.3
|
Net Earnings
(Loss)
|
146.7
|
133.2
|
398.7
|
334.0
|
Net Earnings (Loss) per
Share – Diluted
|
2.38
|
2.10
|
6.47
|
5.17
|
Operating Earnings
(Loss) – Normalized1
|
|
|
|
|
Industrial
|
121.9
|
74.3
|
370.9
|
137.0
|
Mobility
|
78.5
|
94.1
|
236.1
|
287.2
|
Operating Earnings
(Loss) – Normalized
|
200.4
|
168.4
|
607.0
|
424.2
|
Net Earnings (Loss)
– Normalized1
|
136.3
|
121.0
|
418.8
|
301.2
|
Net Earnings (Loss) per
Share – Diluted – Normalized1
|
2.21
|
1.91
|
6.80
|
4.66
|
"Q3 was another exceptional quarter of excellent double-digit
earnings growth, double-digit sales growth and market share growth
and we are well on track to achieve double-digit growth for the
full year. Success in our core business is being enhanced with
continued focus on acquisitions to diversify and expand our product
portfolio, our Mobex deal being the latest example of that," said
Linamar Executive Chair and CEO Linda
Hasenfratz, "Mobex takes our newly formed Linamar Structures
Group to more than $1 Billion in
annual sales, providing excellent opportunities for further growth
in propulsion agnostic and electrified vehicle programs, sales for
which are now representing nearly 60% of booked light vehicle sales
inside of the next 4 years."
__________________________
|
1
Operating Earnings (Loss) – Normalized, Net Earnings (Loss) –
Normalized, Net Earnings (Loss) per Share – Diluted – Normalized,
and Free Cash Flow are non-GAAP financial measures. Please see
"Non-GAAP and Other Financial Measures" section of this press
release.
|
DIVIDENDS
The Board of Directors today declared an eligible dividend in
respect to the quarter ended September 30,
2023, of CDN$0.22 per share on
the common shares of the company, payable on or after December 1, 2023, to shareholders of record on
November 21, 2023.
NON-GAAP AND OTHER FINANCIAL MEASURES
The Company uses certain non-GAAP and other financial measures
to provide useful information to both management, investors, and
other stakeholders in assessing the financial performance and
financial condition of the Company.
Certain expenses and income that must be recognized under GAAP
are not necessarily reflective of the Company's underlying
operational performance. For this reason, management uses certain
non-GAAP and other financial measures when analyzing operational
performance on a consistent basis.
These Non-GAAP and other financial measures do not have a
standardized meaning prescribed by GAAP and therefore they are
unlikely to be comparable to similarly titled measures presented by
other publicly traded companies, and they should not be construed
as an alternative to other financial measures determined in
accordance with GAAP. Please see the "Non-GAAP and Other Financial
Measures" section of the Company's MD&A for further
information.
All these other items contained in these non-GAAP financial
measures are summarized as follows:
Three Months
Ended
|
Nine Months
Ended
|
|
|
September 30
|
|
September 30
|
|
2023
|
2022
|
2023
|
2022
|
(in millions of
dollars)
|
$
|
$
|
$
|
$
|
Gain on sale of unused
land
|
-
|
-
|
-
|
(22.1)
|
Adjustment for
contingent consideration of Mills River earn-out
|
-
|
-
|
4.9
|
-
|
Other items impacting
Operating Earnings (loss) – Normalized and Net Earnings (Loss) -
Normalized
|
-
|
-
|
4.9
|
(22.1)
|
During Q1 2023, a normalizing item related to an "adjustment for
contingent consideration on Mills
River earn-out" impacted the Mobility segment by
$4.9 million. Also, during Q1 2023
and Q2 2023 a normalizing item impacting the Company's income taxes
related to withholding tax on repatriation of cash from
China by $5.2 million and $13.4
million respectively.
During Q1 2022, a normalizing item related to a "gain on sale of
unused land" impacted the Mobility segment by $22.1 million.
All normalized non-GAAP financial measures areas reconciled as
follows:
|
Three Months
Ended
|
Nine Months
Ended
|
September 30
|
September 30
|
(in millions of
dollars, except per share figures)
|
2023
|
2022
|
+/-
|
+/-
|
2023
|
2022
|
+/-
|
+/-
|
$
|
$
|
$
|
%
|
$
|
$
|
$
|
%
|
Operating Earnings
(Loss) – Normalized
|
Operating Earnings
(Loss)
|
214.3
|
185.4
|
28.9
|
15.6 %
|
605.3
|
463.3
|
142.0
|
30.6 %
|
Foreign exchange (gain)
loss
|
(13.9)
|
(17.0)
|
3.1
|
|
(3.2)
|
(17.0)
|
13.8
|
|
Other items
|
-
|
-
|
-
|
|
4.9
|
(22.1)
|
27.0
|
|
Operating Earnings
(Loss) – Normalized
|
200.4
|
168.4
|
32.0
|
19.0 %
|
607.0
|
424.2
|
182.8
|
43.1 %
|
|
|
|
|
|
|
|
|
|
Net Earnings (Loss)
– Normalized
|
Net Earnings
(Loss)
|
146.7
|
133.2
|
13.5
|
10.1 %
|
398.7
|
334.0
|
64.7
|
19.4 %
|
Foreign exchange (gain)
loss
|
(13.9)
|
(17.0)
|
3.1
|
|
(3.2)
|
(17.0)
|
13.8
|
|
Foreign exchange (gain)
loss on debt and derivatives
|
(0.1)
|
0.7
|
(0.8)
|
|
-
|
1.2
|
(1.2)
|
|
Other items
|
-
|
-
|
-
|
|
4.9
|
(22.1)
|
27.0
|
|
Tax impact including
Other Items
|
3.6
|
4.1
|
(0.5)
|
|
18.4
|
5.1
|
13.3
|
|
Net Earnings (Loss) –
Normalized
|
136.3
|
121.0
|
15.3
|
12.6 %
|
418.8
|
301.2
|
117.6
|
39.0 %
|
|
|
|
|
|
|
|
|
|
Net Earnings (Loss)
per Share – Diluted – Normalized
|
Net Earnings (Loss) per
Share – Diluted
|
2.38
|
2.10
|
0.28
|
13.3 %
|
6.47
|
5.17
|
1.30
|
25.1 %
|
Foreign exchange (gain)
loss
|
(0.22)
|
(0.27)
|
0.05
|
|
(0.05)
|
(0.27)
|
0.22
|
|
Foreign exchange (gain)
loss on debt and derivatives
|
-
|
0.01
|
(0.01)
|
|
-
|
0.02
|
(0.02)
|
|
Other items
|
-
|
-
|
-
|
|
0.08
|
(0.34)
|
0.42
|
|
Tax impact including
Other Items
|
0.05
|
0.07
|
(0.02)
|
|
0.30
|
0.08
|
0.22
|
|
Net Earnings (Loss) per
Share – Diluted – Normalized
|
2.21
|
1.91
|
0.30
|
15.7 %
|
6.80
|
4.66
|
2.14
|
45.9 %
|
All normalized non-GAAP financial measures areas impacting
segments reconciled as follows:
|
Three Months
Ended
|
Nine Months
Ended
|
September 30
|
September 30
|
|
2023
|
2023
|
|
Industrial
|
Mobility
|
Linamar
|
Industrial
|
Mobility
|
Linamar
|
(in millions of
dollars)
|
$
|
$
|
$
|
$
|
$
|
$
|
Operating Earnings
(Loss) – Normalized
|
Operating Earnings
(Loss)
|
130.4
|
83.9
|
214.3
|
375.1
|
230.2
|
605.3
|
Foreign exchange (gain)
loss
|
(8.5)
|
(5.4)
|
(13.9)
|
(4.2)
|
1.0
|
(3.2)
|
Other items
|
-
|
-
|
-
|
-
|
4.9
|
4.9
|
Operating Earnings
(Loss) – Normalized
|
121.9
|
78.5
|
200.4
|
370.9
|
236.1
|
607.0
|
|
Three Months
Ended
|
Nine Months
Ended
|
September 30
|
September 30
|
|
2022
|
2022
|
|
Industrial
|
Mobility
|
Linamar
|
Industrial
|
Mobility
|
Linamar
|
(in millions of
dollars)
|
$
|
$
|
$
|
$
|
$
|
$
|
Operating Earnings
(Loss) – Normalized
|
Operating Earnings
(Loss)
|
84.7
|
100.7
|
185.4
|
145.9
|
317.4
|
463.3
|
Foreign exchange (gain)
loss
|
(10.4)
|
(6.6)
|
(17.0)
|
(8.9)
|
(8.1)
|
(17.0)
|
Other items
|
-
|
-
|
-
|
-
|
(22.1)
|
(22.1)
|
Operating Earnings
(Loss) – Normalized
|
74.3
|
94.1
|
168.4
|
137.0
|
287.2
|
424.2
|
FORWARD LOOKING INFORMATION, RISK AND UNCERTAINTIES
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
competitive environment in which Linamar operates, OEM outsourcing
and insourcing; sources and availability of raw materials; labour
markets and dependence on key personnel; dependence on certain
customers and product programs; technological change in the sectors
in which the Company operates and by Linamar's competitors; delays
in or operational issues with product launches; foreign currency
risk; long-term contracts that are not guaranteed; acquisition and
expansion risk; foreign business risk; public health threats;
cyclicality and seasonality; legal proceedings and insurance
coverage; credit risk; weather; emission standards; capital and
liquidity risk; tax laws; securities laws compliance and corporate
governance standards; fluctuations in interest rates; environmental
emissions and safety regulations; trade and labour disruptions;
world political events; pricing concessions to customers; and
governmental, environmental and regulatory policies.
The foregoing is not an exhaustive list of the factors that may
affect Linamar's forward-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
Q3 2023 Release Information
Linamar will hold a
webcast call on November 8, 2023, at
5:00 p.m. ET to discuss its third
quarter results. The event will be simulcast and can be accessed at
the following URL
https://www.linamar.com/event/q3-2023-earnings-call/ and can also
be navigated to on the Company's website. For those who wish to
listen to an audio only call-in option, the numbers for this call
are (+1) 888 396-8049 (North
America) or (+1) 416 764-8646 (International) Conference ID
20767152, with a call-in required 15 minutes prior to the start of
the webcast. The conference call will be chaired by Linda Hasenfratz, Linamar's Executive Chair and
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
4:00 p.m. ET on November 8, 2023, and at www.sedar.com by the
start of business on November 9,
2023. The webcast replay will be available at
https://www.linamar.com/event/q3-2023-earnings-call/ after the
call. A taped replay of the conference call will also be made
available starting at 8:00 p.m. ET on
November 8, 2023, for seven days. The
number for the replay is (+1) (877) 674-7070 or (+1) (416)
764-8692, Passcode: 767152#. In addition, a recording of the call
will be posted at
https://www.linamar.com/event/q3-2023-earnings-call/.
Q4 2023 Release Information
Linamar will hold a
webcast call on March 6, 2024, at
5:00 p.m. ET to discuss its third
quarter results. The event will be simulcast and can be accessed at
the following
https://www.linamar.com/event/q4-2023-earnings-call/ and can
also be navigated to on the Company's website. For those who wish
to listen to an audio only call-in option, the numbers for this
call are (+1) 888 259-6580 (North
America) or (+1) 416 764-8624 (International) Conference ID
11859424, with a call-in required 15 minutes prior to the start of
the webcast. The conference call will be chaired by Linda Hasenfratz, Linamar's Executive Chair and
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
4:00 p.m. ET on March 6, 2024, and at www.sedar.com by the
start of business on March 7, 2024.
The webcast replay will be available at
https://www.linamar.com/event/q4-2023-earnings-call/ after the
call. A taped replay of the conference call will also be made
available starting at 8:00 p.m. ET on
March 6, 2024, for seven days. The
number for the replay is (+1) (877) 674-7070 or (+1) (416)
764-8692, Passcode: 859424 #. In addition, a recording of the call
will be posted at
https://www.linamar.com/event/q4-2023-earnings-call/.
Linamar Corporation (TSX:LNR) is an advanced manufacturing
company where the intersection of leading-edge technology and deep
manufacturing expertise is creating solutions that power vehicles,
motion, work and lives for the future. The Company is made up of
two operating segments – the Industrial segment and the Mobility
segment, both global leaders in manufacturing solutions and
world-class developers of highly engineered products. The
Industrial segment is comprised of Skyjack, MacDon and Salford. Skyjack manufactures scissor, boom
and telehandler lifts for the aerial work platform industry. MacDon
manufactures combine draper headers and self-propelled windrowers
for the agricultural harvesting industry. Salford also supplies the agriculture market
with farm tillage and crop fertilizer applicator equipment. The
Mobility segment is focused on propulsion systems, structural and
chassis systems, energy storage and power generation for both the
global electrified and traditionally powered vehicle markets, and
is subdivided into three regional groups and one global product
group: North America, Europe, Asia
Pacific and the newly formed Structures Group. The Regional
Mobility groups are vertically integrated operations combining
expertise in light metal casting, forging, machining and assembly.
The Linamar Structures Group offers competitive lightweight
innovations for safety-critical components and systems for the
global mobility market. In addition, the eLIN Product Solutions
Group focuses on Electrification and McLaren Engineering provides
design, development, and testing services for the Mobility segment.
Linamar's medical solutions group, Linamar MedTech, focuses on
manufacturing solutions for medical devices and precision medical
components. Linamar has over 31,000 employees in 70 manufacturing
locations, 14 R&D centres and 28 sales offices in 19 countries
in North and South America,
Europe and Asia, which generated sales of more than
$7.9 billion in 2022. For more
information about Linamar Corporation and its industry-leading
products and services, visit www.linamar.com or follow us on our
social media channels.
Guelph, Ontario
November 8, 2023
SOURCE Linamar Corporation