Linamar Posts Record Year in Sales and Earnings, Sees Continued Margin Improvement

Linamar Posts Record Year in Sales and Earnings, Sees Continued Margin 
Improvement 
GUELPH, ON, March 6, 2013 /CNW/ - (TSX: LNR) 


    --  Sales increase 12.6% over 2011 to reach $3.22 billion;
    --  Adjusted operating earnings up 32.7% over 2011 to reach a
        record level of $218.5 million;
    --  Adjusted net earnings up 36.7% over 2011;
    --  Adjusted EPS is up 36.6% over 2011 to reach $2.24;
    --  New business wins continue to be strong, launch book at more
        than $2.3 billion;
    --  Industrial segment sales up 47.2% and operating earnings up
        433.8%, ends year in the black;
    --  Powertrain/Driveline segment sales up 8.1% and adjusted
        operating earnings up 14.2% over 2011;
    --  Return on Capital Employed improved by 21% from Q4 2011 to
        reach 13.08%;
    --  Total Debt levels reduced further from the third quarter of
        2012 ("Q3 2012") and Debt to Total Capitalization continues to
        improve reaching 39.9%.
                                     Three Months Ended      Year Ended
                                            December 31     December 31
                                      2012         2011    2012    2011

(in millions of dollars, except          $            $       $       $
earnings per share
figures)                     

Sales                                756.5        718.0 3,221.9 2,861.4

Operating Earnings (Loss)                                              
    Powertrain/Driveline               48.0         37.5   195.8   163.8
    Industrial                          0.3        (3.9)    22.7   (6.8)

Operating Earnings (Loss)             48.3         33.6   218.5   157.0
    Unusual Items                         -          9.8       -     7.6

Operating Earnings (Loss) - Adjusted  48.3         43.4   218.5   164.6
                                                                       

Net Earnings Attributable to          30.7         27.0   146.1   101.4
Shareholders of the Company
    Unusual Items                         -          0.9   (1.2)     4.6

Net Earnings (Loss) Attributable to   30.7         27.9   144.9   106.0
Shareholders of the Company -
Adjusted
                                                                       

Net Earnings per Share                0.47         0.42    2.26    1.57

Net Earnings (Loss) per Share -       0.47         0.43    2.24    1.64
Adjusted
                                                                       

Unusual Items                                                          

Taxable Items before Tax                                               


1)     Exchange loss (gain) on        -        (4.1)   (1.6)     3.9 
the 2017 and 2021 Private 
Placement Notes 
2)     SES Cancellation               -          9.8       -     9.8 
Tax Impact                               -        (1.5)     0.4   (3.6) 
Non-Taxable Items                                                       
3)     Bargain purchase gain on       -            -       -   (2.2) 
Famer acquisition 
4)     Lower than expected            -        (3.3)       -   (3.3) 
effective tax rate 
Total Unusual Items                      -          0.9   (1.2)     4.6 
Operating Highlights 
Sales for the fourth quarter of 2012 ("Q4 2012") were $756.5 million, up $38.5 
million from $718.0 million in Q4 2011. 
Sales for the Powertrain/Driveline segment increased by $20.7 million, or 3.2% 
in Q4 2012 to $667.7 million compared to $647.0 million in the fourth quarter 
of 2011 ("Q4 2011"). The sales increase in the fourth quarter was impacted 
by: 


    --  significant levels of newly launched programs from the
        Company's substantial book of launch business; and
    --  higher volumes on increased consumer demand in the US and Asia;
        partially offset by:
    --  decreased demand in the on and off highway commercial vehicles
        markets primarily in Europe; and
    --  decreased demand in other European markets for mature programs.

Industrial segment sales increased 25.1%, or $17.8 million from Q4 2011 to 
$88.8 million. The sales increase was:
    --  primarily due to increases in demand in the access equipment
        markets resulting from fleet replacement initiatives.

The company's operating earnings for Q4 2012 were $48.3 million. This 
compares to adjusted operating earnings of $43.4 million in Q4 2011, an 
increase of $4.9 million.

Q4 2012 operating earnings of $48.0 million for the Powertrain/Driveline 
segment were higher by $0.7 million from adjusted operating earnings of $47.3 
million in Q4 2011. The segment experienced the following in Q4 2012:
    --  improved margins as production volumes increased on launching
        and mature programs;
    --  the cancellation of the SES solar program recognized in Q4 2011
        that did not recur in Q4 2012; and
    --  lower amount of start-up costs in comparison to the level of
        start-up activity in Q4 2011; partially offset by:
    --  investment in fixed labour and overhead costs to support the
        future growth of the market; and
    --  decreases due to the reduced volumes in the on and off highway
        commercial markets.

The Q4 2012 operating earnings for the Industrial segment were $0.3 million, a 
107.7% improvement from operating losses of $3.9 million in Q4 2011. The 
Industrial operating earnings were predominantly driven by:
    --  margin improvements on the increased volumes in the access
        equipment market;
    --  the strengthening US dollar and EUR against other currencies in
        the quarter compared to the same period in 2011 that resulted
        in a foreign exchange gain in Q4 2012 as compared to a foreign
        exchange loss in Q4 2011; and
    --  decreased launch costs associated with the energy programs;
        partially offset by:
    --  continued investment in labour and fixed overhead costs at
        Skyjack to support the future growth in the market.

"We are very pleased to see 2013 close as a record year on all counts," said 
Linamar CEO Linda Hasenfratz. "Earnings growth continues to outpace sales 
growth by a significant factor, our balance sheet continues to strengthen 
positioning us well for continued growth and investment and we continue to see 
great improvements in ROCE and ROE. Our team has worked together to deliver 
fantastic results and the future looks great for us here at Linamar!"

Dividends

The Board of Directors today declared an eligible dividend in respect to the 
quarter ended December 31, 2012 of CDN$0.08 per share on the common shares of 
the company, payable on or after April 16, 2013 to shareholders of record on 
April 2, 2013.

Risk and Uncertainties (forward looking statements)

Linamar no longer provides a financial outlook.

Certain information provided by Linamar in these unaudited interim financial 
statements, MD&A and other documents published throughout the year that are 
not recitation of historical facts may constitute forward-looking statements. 
The words "estimate", "believe", "expect" and similar expressions are intended 
to identify forward-looking statements. Persons reading this report are 
cautioned that such statements are only predictions and the actual events or 
results may differ materially. In evaluating such forward-looking statements, 
readers should specifically consider the various factors that could cause 
actual events or results to differ materially from those indicated by such 
forward-looking statements.

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, Linamar. 
Some risks and uncertainties may cause results to differ from current 
expectations. The factors which are expected to have the greatest impact on 
Linamar include but are not limited to (in the various economies in which 
Linamar operates): the extent of OEM outsourcing, industry cyclicality, trade 
and labour disruptions, pricing concessions and cost absorptions, delays in 
program launches, the Company's dependence on certain engine and transmission 
programs and major OEM customers, currency exposure, and technological 
developments by Linamar's competitors.

A large proportion of the Company's cash flows are denominated in foreign 
currencies. The movement of foreign currency exchange rates against the 
Canadian dollar has the potential to have a negative impact on financial 
results. The Company has employed a hedging strategy as appropriate to attempt 
to mitigate the impact but cannot be completely assured that the entire 
exchange effect has been offset.

Other factors and risks and uncertainties that could cause results to differ 
from current expectations are discussed in the MD&A and include, but are not 
limited to: fluctuations in interest rates, environmental emission and safety 
regulations, governmental, environmental and regulatory policies, and changes 
in the competitive environment in which Linamar operates. Linamar assumes no 
obligation to update the forward-looking statements, or to update the reasons 
why actual results could differ from those reflected in the forward-looking 
statements.

Conference Call Information

Q4 2012 Conference Call Information

Linamar will hold a conference call on March 6, 2013 at 5:00 p.m. EST to 
discuss its fourth quarter/year end results. The numbers for this call are 
(647) 427-3383 (local/overseas) or (888) 424-9894 (North America) confirmation 
number 61988753, with a call-in required 10 minutes prior to the start of the 
conference call. The conference call will be chaired by Linda Hasenfratz, 
Linamar's Chief Executive Officer. A copy of the company's quarterly/year 
end financial statements, including the Management's Discussion & Analysis 
will be available on the company's website after 4 p.m. EST on March 6, 2013 
and at www.sedar.com by the start of business on March 7, 2013. A taped 
replay of the conference call will also be made available starting at 11:00 
p.m. on March 6, 2013 for seven days. The number for replay is (855) 
859-2056, Conference ID 61988753. The conference call can also be accessed 
by web cast at www.linamar.com, by accessing the investor relations/events 
menu, and will be available for a 7 day period.

Audio only streaming of the conference call available. Follow this link to 
connect http://www.meetview.com/linamar20130306

Q1 2013 Conference Call Information

Linamar will hold a conference call on May 8, 2013 at 5:00 p.m. EST to discuss 
its first quarter results. The numbers for this call are (647) 427-3383 
(local/overseas) or (888) 424-9894 (North America) confirmation number 
98663569, with a call-in required 10 minutes prior to the start of the 
conference call. The conference call will be chaired by Linda Hasenfratz, 
Linamar's Chief Executive Officer. A copy of the company's quarterly 
financial statements, including the Management's Discussion & Analysis will be 
available on the company's website after 4 p.m. EST on May 8, 2013 and at 
www.sedar.com by the start of business on May 9, 2013. A taped replay of the 
conference call will also be made available starting at 11:00 p.m. on May 8, 
2013 for seven days. The number for replay is (855) 859-2056, Conference ID 
98663569. The conference call can also be accessed by web cast at 
www.linamar.com, by accessing the investor relations/events menu, and will be 
available for a 7 day period.

Audio only streaming of the conference call available. Follow this link to 
connect http://www.media-server.com/m/p/9648w6ew

Linamar Corporation (TSX:LNR) is a diversified global manufacturing Company of 
highly engineered products powering vehicles, motion, work and lives. The 
Company is made up of 2 operating segments - the Powertrain/Driveline segment 
and the Industrial segments which are further divided into 4 key divisions - 
Manufacturing, Driveline, Industrial Commercial Energy ("ICE") and Skyjack, 
all world leaders in the design, development and production of highly 
engineered products. The Company's Manufacturing and Driveline divisions 
focus on precision metallic components, modules and systems for engine, 
transmission and driveline systems designed for passenger vehicle markets. 
The ICE group concentrates on similar products for on and off highway vehicle, 
energy and other industrial markets. The Company's Skyjack division is noted 
for its innovative, high quality mobile industrial equipment, notably its 
class-leading aerial work platforms and telehandlers. With more than 17,200 
employees in 40 manufacturing locations, 5 R&D centers and 15 sales offices in 
12 countries in North America, Europe and Asia, Linamar generated sales of 
more than $3.22 Billion in 2012. For more information about Linamar 
Corporation and its industry leading products and services, visit 
www.linamar.com

(signed)                   (signed)
Frank Hasenfratz           Linda Hasenfratz
Chairman of the Board      Chief Executive Officer



For further information regarding this release please contact Linda  
Hasenfratz at (519) 836-7550.

SOURCE: Linamar Corporation

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CO: Linamar Corporation
ST: Ontario
NI: AUT ERN DIV CONF 

-0- Mar/06/2013 21:00 GMT


 
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