The industrial segment of Linamar, a major part of which is made up by Skyjack, reported a sales increase in the second quarter of 2015 of 28.9%, or $63.7 m, to $284.1 m.
According to the Canada-based group the sales increase was due to increased North American, Asian and European sales from higher market demand for access equipment. Higher sales also resulted from favourable changes in foreign exchange rates and greater market share for booms in North America, Europe and Asia; and for scissor lifts in the same areas.
Industrial segment operating earnings increased $16.6 m in the second quarter, compared to the same period in 2014, to 54.6 million or 43.7%. For the six months ending 30 June, operating earnings rose to 98.9 m, compared to 69.3 m in the first six months of last year. It was predominantly driven by the increased demand for access platforms and favourable foreign exchange rates; partially offset by lower margins due to a less favourable customer and product mix of the units sold in the quarter; and increased management and sales costs supporting growth.
“We have completed another outstanding quarter at Linamar with solid market share gains again driving record levels of sales and earnings,” said Linamar CEO Linda Hasenfratz. “Financially we saw double digit sales and earnings growth in line with goals and have once more improved our margin performance Our diversification strategy continues to deliver outstanding opportunities in a variety of markets, processes and products driving consistent sustainable growth for us. We are excited by what our team is achieving and what the future holds.”
For the group sales increased 23.8% over the second quarter of 2014 reaching record levels of $1.37 billion. Global vehicle markets were up 0.3% and access markets were up 13%. Group operating earnings were up 33.2% at $165.6 m.