Linamar Delivers a Stellar 2023 with Record Sales, over 40% Earnings Growth, Increases Dividend
Strong financial performance
- Sales up 19.1% to
$2.45 billion in Q4 2023, and up 23% for the year; - Normalized Operating Earnings1 up 36.2% in Q4 2023, and up 41.4% for the year; and
- Normalized Diluted Earnings per Share1 up 23% in Q4 2023, and up 40.3% for the year.
Mobility Segment Performing
- Mobility segment finished the year on a very strong note with earnings and margins well up over Q3 2023; and
- Mobility segment earnings also up over Q4 2022 and margins up on a constant currency basis.
Diversified Strategy Success
- Diversified strategy validated with Industrial earnings up 145% over 2022, anchoring solid overall performance; and
- Acquisition of our chassis and suspension business closed and will drive strong propulsion-agnostic growth.
Returning Cash to Shareholders
-
Linamar $0.25 per share.
Double-Digit Sales Growth in Both Segments
- Sales up 19.8% for Industrial for the quarter and 38.3% for the year, due to solid market share growth in both the agricultural and access equipment product families;
- Sales up 18.9% for Mobility in the quarter and 18% for the year, driven by both our Linamar Structures acquisitions as well as launching programs and increased volumes; and
- North American and European content per vehicle hit a new annual record reflective of continued market share growth.
|
Three Months Ended |
Twelve Months Ended |
||
|
|
|||
(in millions of dollars, except per share figures) |
2023 |
2022 |
2023 |
2022 |
$ |
$ |
$ |
$ |
|
Sales |
2,453.9 |
2,060.0 |
9,733.5 |
7,917.9 |
Operating Earnings (Loss) |
|
|
|
|
Industrial |
85.8 |
55.7 |
460.9 |
201.6 |
Mobility |
83.8 |
75.8 |
313.9 |
393.2 |
Operating Earnings (Loss) |
169.6 |
131.5 |
774.8 |
594.8 |
Net Earnings (Loss) |
104.4 |
92.2 |
503.1 |
426.2 |
Net Earnings (Loss) per Share – Diluted |
1.69 |
1.49 |
8.17 |
6.67 |
Operating Earnings (Loss) – Normalized1 |
|
|
|
|
Industrial |
100.5 |
55.5 |
471.4 |
192.5 |
Mobility |
91.4 |
85.4 |
327.5 |
372.6 |
Operating Earnings (Loss) – Normalized |
191.9 |
140.9 |
798.9 |
565.1 |
Net Earnings (Loss) – Normalized1 |
122.2 |
99.5 |
541.1 |
400.5 |
Net Earnings (Loss) per Share – Diluted – Normalized1 |
1.98 |
1.61 |
8.78 |
6.26 |
"2023 was another incredible year for us at Linamar with excellent successes seen across all our businesses. We drove to record sales on the back of growing market share in every business, helped by acquisitions, we further diversified our business importantly in the propulsion agnostic arena, key to managing a changing landscape in the mobility business and delivered more than 40% growth in earnings", said
1 |
Operating Earnings (Loss) – Normalized, Net Earnings (Loss) – Normalized, Net Earnings (Loss) per Share – Diluted – Normalized, and Free Cash Flow are non-GAAP financial measures. Please see "Non-GAAP and Other Financial Measures" section of this press release. |
Dividends
The Board of Directors today declared an eligible dividend in respect to the quarter ended
NON-GAAP AND OTHER FINANCIAL MEASURES
The Company uses certain non-GAAP and other financial measures to provide useful information to both management, investors, and other stakeholders in assessing the financial performance and financial condition of the Company.
Certain expenses and income that must be recognized under GAAP are not necessarily reflective of the Company's underlying operational performance. For this reason, management uses certain non-GAAP and other financial measures when analyzing operational performance on a consistent basis.
These Non-GAAP and other financial measures do not have a standardized meaning prescribed by GAAP and therefore they are unlikely to be comparable to similarly titled measures presented by other publicly traded companies, and they should not be construed as an alternative to other financial measures determined in accordance with GAAP. Please see the "Non-GAAP and Other Financial Measures" section of the Company's MD&A for further information.
During Q1 2023, a normalizing item related to an "adjustment for contingent consideration on
During Q4 2022, a normalizing item related to a "net gain on the purchase of
All normalized non-GAAP financial measures areas reconciled as follows:
|
Three Months Ended |
Twelve Months Ended |
||||||
|
|
|||||||
(in millions of dollars, except per share figures) |
2023 |
2022 |
+/- |
+/- |
2023 |
2022 |
+/- |
+/- |
$ |
$ |
$ |
% |
$ |
$ |
$ |
% |
|
Operating Earnings (Loss) – Normalized |
||||||||
Operating Earnings (Loss) |
169.6 |
131.5 |
38.1 |
29.0 % |
774.8 |
594.8 |
180.0 |
30.3 % |
Foreign exchange (gain) loss |
22.3 |
17.1 |
5.2 |
|
19.2 |
0.1 |
19.1 |
|
Other items |
- |
(7.7) |
7.7 |
|
4.9 |
(29.8) |
34.7 |
|
Operating Earnings (Loss) – Normalized |
191.9 |
140.9 |
51.0 |
36.2 % |
798.9 |
565.1 |
233.8 |
41.4 % |
|
|
|
|
|
|
|
|
|
Net Earnings (Loss) – Normalized |
||||||||
Net Earnings (Loss) |
104.4 |
92.2 |
12.2 |
13.2 % |
503.1 |
426.2 |
76.9 |
18.0 % |
Foreign exchange (gain) loss |
22.3 |
17.1 |
5.2 |
|
19.2 |
0.1 |
19.1 |
|
Foreign exchange (gain) loss on debt and derivatives |
2.5 |
0.3 |
2.2 |
|
2.5 |
1.5 |
1.0 |
|
Other items |
- |
(7.7) |
7.7 |
|
4.9 |
(29.8) |
34.7 |
|
Tax impact including Other Items |
(7.0) |
(2.4) |
(4.6) |
|
11.4 |
2.5 |
8.9 |
|
Net Earnings (Loss) – Normalized |
122.2 |
99.5 |
22.7 |
22.8 % |
541.1 |
400.5 |
140.6 |
35.1 % |
|
|
|
|
|
|
|
|
|
Net Earnings (Loss) per Share – Diluted – Normalized |
||||||||
Net Earnings (Loss) per Share – Diluted |
1.69 |
1.49 |
0.20 |
13.4 % |
8.17 |
6.67 |
1.50 |
22.5 % |
Foreign exchange (gain) loss |
0.36 |
0.27 |
0.09 |
|
0.31 |
- |
0.31 |
|
Foreign exchange (gain) loss on debt and derivatives |
0.04 |
0.01 |
0.03 |
|
0.04 |
0.02 |
0.02 |
|
Other items |
- |
(0.12) |
0.12 |
|
0.08 |
(0.47) |
0.55 |
|
Tax impact including Other Items |
(0.11) |
(0.04) |
(0.07) |
|
0.18 |
0.04 |
0.14 |
|
Net Earnings (Loss) per Share – Diluted – Normalized |
1.98 |
1.61 |
0.37 |
23.0 % |
8.78 |
6.26 |
2.52 |
40.3 % |
All normalized non-GAAP financial measures areas impacting segments reconciled as follows:
|
Three Months Ended |
Twelve Months Ended |
||||
|
|
|||||
|
2023 |
2023 |
||||
|
Industrial |
Mobility |
|
Industrial |
Mobility |
|
(in millions of dollars) |
$ |
$ |
$ |
$ |
$ |
$ |
Operating Earnings (Loss) – Normalized |
||||||
Operating Earnings (Loss) |
85.8 |
83.8 |
169.6 |
460.9 |
313.9 |
774.8 |
Foreign exchange (gain) loss |
14.7 |
7.6 |
22.3 |
10.5 |
8.7 |
19.2 |
Other items |
- |
- |
- |
- |
4.9 |
4.9 |
Operating Earnings (Loss) – Normalized |
100.5 |
91.4 |
191.9 |
471.4 |
327.5 |
798.9 |
|
Three Months Ended |
Twelve Months Ended |
||||
|
|
|||||
|
2022 |
2022 |
||||
|
Industrial |
Mobility |
|
Industrial |
Mobility |
|
(in millions of dollars) |
$ |
$ |
$ |
$ |
$ |
$ |
Operating Earnings (Loss) – Normalized |
||||||
Operating Earnings (Loss) |
55.7 |
75.8 |
131.5 |
201.6 |
393.2 |
594.8 |
Foreign exchange (gain) loss |
(0.2) |
17.3 |
17.1 |
(9.1) |
9.2 |
0.1 |
Other items |
- |
(7.7) |
(7.7) |
- |
(29.8) |
(29.8) |
Operating Earnings (Loss) – Normalized |
55.5 |
85.4 |
140.9 |
192.5 |
372.6 |
565.1 |
FORWARD LOOKING INFORMATION, RISK AND UNCERTAINTIES
Certain information provided by
Such forward-looking information may involve important risks and uncertainties that could materially alter results in the future from those expressed or implied in any forward-looking statements made by, or on behalf of,
The foregoing is not an exhaustive list of the factors that may affect
Conference Call Information
Q4 2023 Release Information
Q1 2024 Release Information
SOURCE