The Industrial segment of Linamar group, mainly incorporating Skyjack, saw sales increase 2.1% in the second quarter of 2016, or $6 million, to $290.1 million, compared to the same period in 2015.
The company said the increase was due to significant market share growth for telehandlers in North America; partially offset by a delay in spending of larger national customers seen in the quarter.
Operating earnings decreased $1.8 million or 3.3% over the second quarter of 2015 to $52.8 million. According to Linamar the lower margins were a result of spending delays of larger national customers and their choice of lower margin, newly-launched products, such as telehandlers. In turn this was partially offset by the increased demand and market share for the telehandler business.
Group-wide, sales increased 2% over the second quarter of 2015 to reach record levels of $1.66 billion. Operating earnings increased 29% to $213.7 million.
Linamar CEO Linda Hasenfratz, said, “2016 is shaping up to be another record year of double digit top and bottom line growth. We saw record results in the second quarter which is fantastic and we feel confident in our ability to continue to grow. Business wins are at a record level, markets are stable and opportunities globally significant.”