Sales fall at Skyjack will be countered with new products
By Maria Hadlow05 November 2008
Linamar Corporation announced that sales in its Industrial Segment, which is comprised principally of Skyjack, had decreased 21.3% - that is $29.2 million for the third quarter ending 30 September 2008.
Sales for the quarter in 2008 were said to differ from the corresponding period in 2007 due to significant volume reductions due to the uncertainty in the market and the restricted credit availability particularly in Europe.
Operating earnings for Industrial decreased $ 13.1 million (84.7%) compared to the same quarter of 2007 to $2.4 million. The decrease in both segments was driven by under absorption of fixed costs due to significant volume reductions.
Linda Hasenfratz, chief executive officer of Linamar said that the rapid sales decline plus mixed signal from the market had made it difficult to make operating cutbacks in a timely manner, but by the end of the first quarter of 2009 the company should have reduced its operating costs by $10 million.
Ms Hasenfratz also said that although industry experts predict a 20 to 25% decline in business, the range of new products and the acquired telehandler line will offset the declines.