Linamar earnings surge 51 percent, helped by U.S. consumer demand
(Reuters) - Linamar Corp (LNR.TO: Quote), Canada's second biggest auto parts maker, reported a 51 percent jump in quarterly earnings on Wednesday on the back of increased sales and margins as stronger consumer demand in the United States offset weaker demand in Europe.
Linamar said earnings rose to C$42.1 million ($42.3 million), or 65 Canadian cents a share, in the three months to the end of June. That compared with earnings of C$28 million, or 43 Canadian cents a share, in the same period a year earlier.
Analysts, on average, forecast earnings of 61 Canadian cents a share, according to Thomson Reuters I/B/E/S.
Revenue jumped 14.8 percent to C$852.3 million. Analysts had expected revenue of C$858 million.
Sales from Linamar's power train unit increased by 9.5 percent to C$703.7 million compared to C$642.7 million a year before on the back of new business in Canada, Mexico and Asia, it said.
"Our launches are driving great growth in the near term, and our competitive strength and an opportunistic market is helping us build for long term sustainable growth at Linamar," company chief executive Linda Hasenfratz said.
Linamar also said it benefited from sales from new and expanded facilities such as its new German operation.
Sales at the company's industrial unit increased 48.6 percent to C$148.6 million.
Linamar said it no longer provided a financial outlook.
(Reporting By Nicole Mordant in Vancouver; Editing by Peter Galloway and Janet Guttsman)
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