Linamar's Diversified Businesses Deliver Another Quarter of Outstanding Double-Digit Earnings Growth
Strong financial performance
- Sales up 18.7% to
$2.72 billion in Q1 2024; - Normalized Operating Earnings1 up 38.7% in Q1 2024; and
- Normalized Diluted Earnings per Share1 up 30.8% in Q1 2024.
Mobility Segment Performing
- Mobility segment finished the quarter strong with normalized operating earnings up 57.9% compared to Q1 2023; and
- Second consecutive quarter of margin expansion with normalized operating earnings margin reaching 6.2%, meaningfully improved from 2023 levels.
Diversified Strategy Success
- Industrial normalized operating earnings up 23.3% over Q1 2023, anchoring solid overall performance further validating diversification strategy;
- Industrial normalized operating earnings representing over 49% of consolidated normalized operating earnings solidly anchoring
as a Diversified Industrial Business; andLinamar - The acquisition of
Bourgault Industries Ltd. ("Bourgault") completed, expanding our agricultural profile to include broad acre seeding.
Double-Digit Sales Growth in Both Segments on Strong Market Share Growth
- Sales up 24.5% for Industrial for the quarter, due to exceptional global market share growth for combine drapers combined with our most recent acquisition of Bourgault;
- Sales up 16.7% for Mobility in the quarter, driven by both our Linamar Structures 2023 acquisitions as well as launching programs and increased volumes; and
- Content per vehicle1 ("CPV") up in every region, North American CPV hit a new quarterly record reflective of continued market share growth.
Returning Cash to Shareholders
-
Linamar is maintaining its dividend to shareholders at quarterly$0.25 per share.
|
|
Three Months Ended |
||
|
|
|||
(in millions of dollars, except per share figures) |
|
|
2024 |
2023 |
|
|
$ |
$ |
|
Sales |
|
|
2,721.9 |
2,292.7 |
Operating Earnings (Loss) |
|
|
|
|
Industrial |
|
|
139.7 |
104.9 |
Mobility |
|
|
129.5 |
72.0 |
Operating Earnings (Loss) |
|
|
269.2 |
176.9 |
Net Earnings (Loss) |
|
|
178.5 |
117.0 |
Net Earnings (Loss) per Share – Diluted |
|
|
2.90 |
1.90 |
Operating Earnings (Loss) – Normalized1 |
|
|
|
|
Industrial |
|
|
120.2 |
97.5 |
Mobility |
|
|
123.6 |
78.3 |
Operating Earnings (Loss) – Normalized |
|
|
243.8 |
175.8 |
Net Earnings (Loss) – Normalized1 |
|
|
159.6 |
121.7 |
Net Earnings (Loss) per Share – Diluted – Normalized1 |
|
|
2.59 |
1.98 |
"Q1 marked an outstanding start to the year for us at
______________________ |
|
1 |
Operating Earnings (Loss) – Normalized, Net Earnings (Loss) – Normalized, and Net Earnings (Loss) per Share – Diluted – Normalized are non-GAAP financial measures. Content per Vehicle is a Supplementary Financial Measure. 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
All normalized non-GAAP financial measures areas reconciled as follows:
|
|
Three Months Ended |
||||||
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|
|||||||
(in millions of dollars, except per share figures) |
|
|
|
|
2024 |
2023 |
+/- |
+/- |
|
|
|
|
$ |
$ |
$ |
% |
|
Operating Earnings (Loss) – Normalized |
||||||||
Operating Earnings (Loss) |
|
|
|
|
269.2 |
176.9 |
92.3 |
52.2 % |
Foreign exchange (gain) loss |
|
|
|
|
(25.4) |
(6.0) |
(19.4) |
|
Other items |
|
|
|
|
- |
4.9 |
(4.9) |
|
Operating Earnings (Loss) – Normalized |
|
|
|
|
243.8 |
175.8 |
68.0 |
38.7 % |
|
|
|
|
|
|
|
|
|
Net Earnings (Loss) – Normalized |
||||||||
Net Earnings (Loss) |
|
|
|
|
178.5 |
117.0 |
61.5 |
52.6 % |
Foreign exchange (gain) loss |
|
|
|
|
(25.4) |
(6.0) |
(19.4) |
|
Foreign exchange (gain) loss on debt and derivatives |
|
|
|
|
0.5 |
0.2 |
0.3 |
|
Other items |
|
|
|
|
- |
4.9 |
(4.9) |
|
Tax impact including Other Items |
|
|
|
|
6.0 |
5.6 |
0.4 |
|
Net Earnings (Loss) – Normalized |
|
|
|
|
159.6 |
121.7 |
37.9 |
31.1 % |
|
|
|
|
|
|
|
|
|
Net Earnings (Loss) per Share – Diluted – Normalized |
||||||||
Net Earnings (Loss) per Share – Diluted |
|
|
|
|
2.90 |
1.90 |
1.00 |
52.6 % |
Foreign exchange (gain) loss |
|
|
|
|
(0.41) |
(0.09) |
(0.32) |
|
Foreign exchange (gain) loss on debt and derivatives |
|
|
|
|
0.01 |
- |
0.01 |
|
Other items |
|
|
|
|
- |
0.08 |
(0.08) |
|
Tax impact including Other Items |
|
|
|
|
0.09 |
0.09 |
- |
|
Net Earnings (Loss) per Share – Diluted – Normalized |
|
|
|
|
2.59 |
1.98 |
0.61 |
30.8 % |
All normalized non-GAAP financial measures areas impacting segments reconciled as follows:
|
|
Three Months Ended |
||||
|
|
|||||
|
|
2024 |
||||
|
|
|
|
Industrial |
Mobility |
|
(in millions of dollars) |
|
|
|
$ |
$ |
$ |
Operating Earnings (Loss) – Normalized |
||||||
Operating Earnings (Loss) |
|
|
|
139.7 |
129.5 |
269.2 |
Foreign exchange (gain) loss |
|
|
|
(19.5) |
(5.9) |
(25.4) |
Other items |
|
|
|
- |
- |
- |
Operating Earnings (Loss) – Normalized |
|
|
|
120.2 |
123.6 |
243.8 |
|
|
Three Months Ended |
||||
|
|
|||||
|
|
2023 |
||||
|
|
|
|
Industrial |
Mobility |
|
(in millions of dollars) |
|
|
|
$ |
$ |
$ |
Operating Earnings (Loss) – Normalized |
||||||
Operating Earnings (Loss) |
|
|
|
104.9 |
72.0 |
176.9 |
Foreign exchange (gain) loss |
|
|
|
(7.4) |
1.4 |
(6.0) |
Other items |
|
|
|
- |
4.9 |
4.9 |
Operating Earnings (Loss) – Normalized |
|
|
|
97.5 |
78.3 |
175.8 |
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
Q1 2024 Release Information
Q2 2024 Release Information
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SOURCE