linamar corp (LNR) Snapshot

Linamar Corp. reported earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported sales of CAD 846.6 million, up CAD 6.8 million from CAD 839.8 million reported a year ago. Sales for the Powertrain/Driveline segment increased by CAD 10.6 million, or 1.5% to CAD 709.1 million compared to CAD 698.5 million reported a year ago. The sales increase in the first quarter was impacted by increased North American sales as a result of the significant levels of newly launched programs being largely offset by reductions in the on and off highway commercial vehicle markets; increased European sales due to substantial levels of programs being launched being offset by the reduction in both the automotive vehicle and the on and off highway commercial vehicle markets; and increased Asian sales as a result of the ramp up of programs in launch and higher volumes on mature programs. The company's operating earnings were CAD 71.7 million, an increase of CAD 14.2 million or 24.7% compared to CAD 57.5 million reported a year ago. Net earnings attributable to shareholders of the company were CAD 48.4 million or CAD 0.75 per share compared to CAD 39.6 million or CAD 0.61 per share reported a year ago. Adjusted net earnings attributable to shareholders of the company were CAD 48.4 million or CAD 0.75 per share compared to CAD 38.4 million or CAD 0.59 per share reported a year ago. Return on equity reached 17.9% and return on capital employed improved to 13.3%. The first quarter of 2013 provided CAD 64.9 million in cash from operating activities. Capex spend was CAD 69.7 million or 8.2% of sales, in line with targeted levels of 8% to 10%. The Board of Directors declared an eligible dividend in respect to the quarter ended March 31, 2013 of CAD 0.08 per share on the common shares of the company, payable on or after June 3, 2013 to shareholders of record on May 24, 2013. The company expects double-digit earnings growth in 2013 and effective tax rate for 2013 to be around 23%. The company remains committed to targeted generating free cash flow for the fiscal year.

Linamar Corp. announced that it has amended and restated its revolving credit facility to take advantage of current market pricing and to extend the facility a further three years. The new agreement will expire on April 23, 2018. The facility size remains unchanged at $700 million and there were no changes to financial covenants.

Linamar Corp. newly developed Agilit-e(TM) Hybrid Power Unit offers automakers a modular system for hybrid all-wheel drive applications. The Linamar system also offers increased safety while reducing vehicle emissions and improving city driving fuel economy by up to 80%. The Agilit-e(TM) Hybrid Power Unit can be integrated with virtually any existing standard two-wheel drive powertrain design to achieve an all-wheel drive hybrid system. The combination of conventional front-wheel drive and electric rear-wheel drive greatly improves fuel economy, vehicle stability and performance, at a reduced overall system cost. Agilit-e(TM) is a fully integrated, modular and scalable unit that eliminates mechanical complexity and allows for 'bolt-on' installation between the vehicle's suspension components. The unit can be used on a wide-range of applications from micro hybrid to PHEV/EV. The Agilit-e(TM) system is capable of powering the rear wheels in conjunction with the traditional powertrain, which drives the front wheels, allowing the vehicle to operate in four different drive modes: front-wheel drive (FWD) mode powered only by the internal combustion engine (ICE); electric only (EV) mode, which is rear-wheel drive powered only by the battery and the electric motors; and Hybrid and AWD modes, which allow the ICE and the rear electric motors to work together to provide the desired combination of fuel economy and performance. The Agilit-e(TM) Hybrid Power Unit currently is undergoing evaluation with a number of global automakers.