Linamar Corporation Declares Dividend for the Quarter Ended September 30, 2016, Payable on or After December 9, 2016; Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2016; Provides Effective Tax Rate Guidance for the Year 2016
November 02, 2016 at 04:00 pm EDT
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The Board of Directors of Linamar Corporation declared an eligible dividend in respect to the quarter ended September 30, 2016 of CAD 0.10 per share on the common shares of the company, payable on or after December 9, 2016 to shareholders of record on November 25, 2016.
The company reported earnings results for the third quarter and nine months ended September 30, 2016. For the quarter, the company reported net earnings of CAD 122.2 million or CAD 1.86 per share compared to CAD 107.6 million or CAD 1.64 per share a year ago. Sales were CAD 1,455.5 million compared to CAD 1,273.9 million a year ago. Operating earnings were CAD 163.9 million compared to CAD 144.2 million for the last year. The sales increase was impacted by the acquisition of Montupet S.A. in first quarter of 2016; significant levels of newly launched programs in Europe and Asia; and higher sales resulting from favourable changes in foreign exchange rates; partially offset by lower sales on commercial vehicles in North America and Europe. CapEx in the quarter was CAD 85 million or 5.9% of sales. The third quarter generated CAD 280.6 million in cash from operating balances -- operating activities CAD 189.1 million free cash flow, which resulted net debt reduction CAD 122 million since second quarter.
For the nine months, the company reported net earnings of CAD 406.0 million or CAD 6.16 per share compared to CAD 341.4 million or CAD 5.19 per share a year ago. Sales were CAD 4,630.8 million compared to CAD 3,919.5 million a year ago. Operating earnings were CAD 549.7 million compared to CAD 465.6 million for the last year.
The company expects the effective tax rate in 2016 to be in the range of 22% 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 Corporation Declares Dividend for the Quarter Ended September 30, 2016, Payable on or After December 9, 2016; Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2016; Provides Effective Tax Rate Guidance for the Year 2016