Sales in the Industrial segment of Linamar, primarily Skyjack, increased 8.5%, or $17.9 million, to $228.1 million in the third quarter, compared to the same period in 2015.
The manufacturer said there had been strong scissor sales growth in the quarter, as a result of good market share growth in Asia and North America. The company also reported a strong growth in telehandler sales despite a softer market in North America.
This was, “partially offset by decreased booms sales due to very soft market conditions in North America, which overwhelmed the market share growth in the region; and lower sales resulting from unfavourable changes in foreign exchange rates,” said the manufacturer.
Operating earnings increased $2.8 million or 7.6%, compared to the third quarter 2015. This was driven by better margins as a result of changes in product mix, said the company, as well as the increase production volumes. Offset, again, by recent exchange rates.
“2016 is shaping up to be another record year of double digit top and bottom line growth,” said Linamar CEO Linda Hasenfratz. “We saw another fantastic quarter in Q3 and we feel confident in our ability to continue to grow. Business wins are at a record level, we are rapidly delevering the balance sheet thanks to solid cash flow and we continue to see great growth opportunities globally.”
Group sales for the third quarter of 2016 stand at $1,455.5 million, up $181.6 million, or 14.3%, from $1,273.9 million in the third quarter 2015. The company’s operating earnings were up 13.4% to $163.9 million. This compares to $144.2 million in the same period last year, an increase of $19.7 million.