Skyjack parent company Linamar has reported a 56.7% decrease in industrial sales for Q2 at C$923.6 million, down C$1,162.5 million from C$2,086.1 million in Q2 2019. Linamar’s industrial segment consists of Skyjack and MacDon equipment.
Linamar said Skyjack’s global markets were down nearly 50% for Q2, driving “significant sales declines.” In an earnings calling with investors, Linamar CEO Linda Hasenfratz said MacDon’s market is down 9-10%, meaning the major industrial sales decline would consist of Skyjack losing 46 to 47% of sales.
In a presentation, Linamar noted, “With rental customers delaying CapEx spend and construction activities slowed, the [mobile elevating work platform] market has experienced steep declines in the first five months of the year, much worse than originally expected. However, “on the positive side, equipment utilization levels are up in NA, in fact, they are 93% in June 2020 of what they were in June 2019, although we have seen a softening in July numbers re: [Covid-19] resurgence in U.S.”
Hasenfratz said, “On the access side, we’re not seeing signs of the market bouncing back yet. So, it’s very reliant on construction levels, and that’s a line on people being able to leave their houses to work. I think that I thought it was quite positive that we were seeing the equipment utilization levels really ramping up, June being at 93% of where it was a year ago. That was great. But with the sort of resurgence in the U.S. of the virus, we’ve seen things slow down in July. So, it’s a little uncertain.”
Linamar’s overall Q2 results showed sales for Q2 2020 were C$923.6 million, down C$1,162.5 million from C$2,086.1 million in Q2 2019.