Linamar Delivers Another Quarter of Outstanding Double-Digit Growth and Announces CEO Succession
- Sales up 11.6% to
$2.85 billion in Q2 2024; - Normalized Operating Earnings1 up 25.9% in Q2 2024; and
- Normalized Diluted Earnings per Share1 up 17.2% in Q2 2024.
- Mobility segment finished the quarter strong with normalized operating earnings of
$126.2 million , up 59.3% compared to Q2 2023; and - Third consecutive quarter of margin expansion with normalized operating earnings margin reaching 6.4%, meaningfully improved from 2023 levels.
- Industrial normalized operating earnings of
$164.3 million are up 8.4% over Q2 2023, anchoring solid overall performance; and - Industrial normalized operating earnings representing over 56% of consolidated normalized operating earnings solidly anchoring
as a Diversified Industrial Business.Linamar
- Sales up 14.1% for Industrial for the quarter, due to excellent market share gains in scissors worldwide and telehandlers in
North America , and worldwide market share gains in windrowers and combine drapers, in addition to the sales related to our most recent acquisition ofBourgault Industries Ltd. ; - Sales up 10.5% for Mobility in the quarter, driven by both our Linamar Structures 2023 acquisitions as well as launching programs and increased certain mature program volumes; and
- Content per vehicle1 ("CPV") up in every region reflective of continued market share growth.
-
Linamar is maintaining its dividend to shareholders at quarterly$0.25 per share.
Having achieved the Company's long-term goal of reaching
As CEO and President,
In her capacity as Executive Chair,
Executive Chair
Incoming CEO and President
|
Three Months Ended |
Six Months Ended |
||
|
|
|||
(in millions of dollars, except per share figures) |
2024 |
2023 |
2024 |
2023 |
$ |
$ |
$ |
$ |
|
Sales |
2,848.7 |
2,552.8 |
5,570.6 |
4,845.5 |
Operating Earnings (Loss) |
|
|
|
|
Industrial |
154.7 |
139.8 |
294.5 |
244.7 |
Mobility |
116.8 |
74.3 |
246.3 |
146.3 |
Operating Earnings (Loss) |
271.5 |
214.1 |
540.8 |
391.0 |
Net Earnings (Loss) |
174.1 |
135.0 |
352.6 |
252.0 |
Net Earnings (Loss) per Share – Diluted |
2.82 |
2.19 |
5.72 |
4.09 |
Operating Earnings (Loss) – Normalized1 |
|
|
|
|
Industrial |
164.3 |
151.6 |
284.5 |
249.1 |
Mobility |
126.2 |
79.2 |
249.8 |
157.5 |
Operating Earnings (Loss) – Normalized |
290.5 |
230.8 |
534.3 |
406.6 |
Net Earnings (Loss) – Normalized1 |
188.4 |
160.8 |
348.0 |
282.5 |
Net Earnings (Loss) per Share – Diluted – Normalized1 |
3.06 |
2.61 |
5.65 |
4.59 |
"Q2 was another outstanding quarter of double-digit top and bottom line growth for us at
The Board of Directors today declared an eligible dividend in respect to the quarter ended
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 Q2 2024, operating earnings were adversely affected by estimated duties relating to certain Industrial segment products exported between 2022 and 2024. A normalizing item related to these estimated duties impacted operating earnings by
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 |
Six Months Ended |
||||||
|
|
|||||||
(in millions of dollars, except per share figures) |
2024 |
2023 |
+/- |
+/- |
2024 |
2023 |
+/- |
+/- |
$ |
$ |
$ |
% |
$ |
$ |
$ |
% |
|
Operating Earnings (Loss) – Normalized |
||||||||
Operating Earnings (Loss) |
271.5 |
214.1 |
57.4 |
26.8 % |
540.8 |
391.0 |
149.8 |
38.3 % |
Foreign exchange (gain) loss |
3.2 |
16.7 |
(13.5) |
|
(22.3) |
10.7 |
(33.0) |
|
Other items |
15.8 |
- |
15.8 |
|
15.8 |
4.9 |
10.9 |
|
Operating Earnings (Loss) – Normalized |
290.5 |
230.8 |
59.7 |
25.9 % |
534.3 |
406.6 |
127.7 |
31.4 % |
|
|
|
|
|
|
|
|
|
Net Earnings (Loss) – Normalized |
||||||||
Net Earnings (Loss) |
174.1 |
135.0 |
39.1 |
29.0 % |
352.6 |
252.0 |
100.6 |
39.9 % |
Foreign exchange (gain) loss |
3.2 |
16.7 |
(13.5) |
|
(22.3) |
10.7 |
(33.0) |
|
Foreign exchange (gain) loss on debt and derivatives |
0.1 |
(0.1) |
0.2 |
|
0.6 |
0.2 |
0.4 |
|
Other items |
15.8 |
- |
15.8 |
|
15.8 |
4.9 |
10.9 |
|
Tax impact including Other Items |
(4.8) |
9.2 |
(14.0) |
|
1.3 |
14.7 |
(13.4) |
|
Net Earnings (Loss) – Normalized |
188.4 |
160.8 |
27.6 |
17.2 % |
348.0 |
282.5 |
65.5 |
23.2 % |
|
|
|
|
|
|
|
|
|
Net Earnings (Loss) per Share – Diluted – Normalized |
||||||||
Net Earnings (Loss) per Share – Diluted |
2.82 |
2.19 |
0.63 |
28.8 % |
5.72 |
4.09 |
1.63 |
39.9 % |
Foreign exchange (gain) loss |
0.05 |
0.27 |
(0.22) |
|
(0.36) |
0.17 |
(0.53) |
|
Foreign exchange (gain) loss on debt and derivatives |
- |
- |
- |
|
0.01 |
- |
0.01 |
|
Other items |
0.26 |
- |
0.26 |
|
0.26 |
0.08 |
0.18 |
|
Tax impact including Other Items |
(0.07) |
0.15 |
(0.22) |
|
0.02 |
0.25 |
(0.23) |
|
Net Earnings (Loss) per Share – Diluted – Normalized |
3.06 |
2.61 |
0.45 |
17.2 % |
5.65 |
4.59 |
1.06 |
23.1 % |
All normalized non-GAAP financial measures areas impacting segments reconciled as follows:
|
Three Months Ended |
Six Months Ended |
||||
|
|
|||||
|
2024 |
2024 |
||||
|
Industrial |
Mobility |
|
Industrial |
Mobility |
|
(in millions of dollars) |
$ |
$ |
$ |
$ |
$ |
$ |
Operating Earnings (Loss) – Normalized |
||||||
Operating Earnings (Loss) |
154.7 |
116.8 |
271.5 |
294.5 |
246.3 |
540.8 |
Foreign exchange (gain) loss |
(6.2) |
9.4 |
3.2 |
(25.8) |
3.5 |
(22.3) |
Other items |
15.8 |
- |
15.8 |
15.8 |
- |
15.8 |
Operating Earnings (Loss) – Normalized |
164.3 |
126.2 |
290.5 |
284.5 |
249.8 |
534.3 |
|
Three Months Ended |
Six Months Ended |
||||
|
|
|||||
|
2023 |
2023 |
||||
|
Industrial |
Mobility |
|
Industrial |
Mobility |
|
(in millions of dollars) |
$ |
$ |
$ |
$ |
$ |
$ |
Operating Earnings (Loss) – Normalized |
||||||
Operating Earnings (Loss) |
139.8 |
74.3 |
214.1 |
244.7 |
146.3 |
391.0 |
Foreign exchange (gain) loss |
11.8 |
4.9 |
16.7 |
4.4 |
6.3 |
10.7 |
Other items |
- |
- |
- |
- |
4.9 |
4.9 |
Operating Earnings (Loss) – Normalized |
151.6 |
79.2 |
230.8 |
249.1 |
157.5 |
406.6 |
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
Q2 2024 Release Information
Q3 2024 Release Information
_________________________ |
|
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 and separately released MD&A. |
SOURCE