Linamar Corp. Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2016; Declares Dividend for the Quarter Ended June 30, 2016, Payable on or After September 12, 2016; Provides Effective Tax Rate Guidance for the Year 2016
August 10, 2016 at 04:02 pm EDT
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Linamar Corp. reported earnings results for the second quarter ended June 30, 2016. For the quarter, the company announced sales of CAD 1,657.2 million compared to CAD 1,368.1 million a year ago. Operating earnings were CAD 213.7 million compared to CAD 165.6 million a year ago. Net earnings were CAD 157.3 million or CAD 2.39 per diluted share compared to CAD 120.1 million or CAD 1.83 per diluted share a year ago. CapEx in the quarter was CAD 85 million or 5.2% of sales. The second quarter generated CAD 167.6 million in cash from operating activities and CAD 70.1 million in free cash flow, which resulted in net debt reduction of CAD 49 million since first quarter.
For the six months, the company announced sales of CAD 3,175.3 million compared to CAD 2,645.6 million a year ago. Operating earnings were CAD 385.8 million compared to CAD 321.4 million a year ago. Net earnings were CAD 283.8 million or CAD 4.31 per diluted share compared to CAD 233.8 million or CAD 3.56 per diluted share a year ago.
The company declared an eligible dividend in respect to the quarter ended June 30, 2016 of CAD 0.10 per share on the common shares of the company, payable on or after September 12, 2016 to shareholders of record on August 25, 2016.
The company is expecting the effective tax rate for the year 2016 to be in the range of 23% to 24%.
Linamar Corporation is a Canada-based advanced manufacturing company. The Company is engaged in providing manufacturing solutions and developing engineered products. Its segments include Industrial and Mobility. The Industrial segment consists of MacDon, Salford, Bourgault, and Skyjack. MacDon manufactures combined draper headers and self-propelled windrowers for the agricultural harvesting industry. Skyjack manufactures scissor, boom, and telehandler lifts for the aerial work platform industry. The Mobility segment is focused on propulsion systems, structural and chassis systems, energy storage and power generation for both the global electrified and traditionally powered vehicle markets and is subdivided into three regional groups and one global product group: North America, Europe, Asia Pacific, and the newly formed Structures Group. The regional mobility groups are vertically integrated operations combining expertise in light metal casting, forging, machining, and assembly.
Linamar Corp. Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2016; Declares Dividend for the Quarter Ended June 30, 2016, Payable on or After September 12, 2016; Provides Effective Tax Rate Guidance for the Year 2016
LINAMAR CORPORATION 
