Linamar earnings leap 57 percent on U.S. demand

Wed Nov 14, 2012 4:29pm EST
 

(Reuters) - Linamar Corp LNR.TO, Canada's second-biggest auto parts maker, reported a 57 percent increase in quarterly earnings on Wednesday as stronger demand in the United States offset weakness in Europe.

Earnings rose to C$33.7 million ($33.59 million), or 52 Canadian cents a share, in the three months to the end of September. That compared with earnings of C$25.1 million, or 33 Canadian cents, before adjustments, in the same period a year earlier.

Sales rose 6.6 percent to C$773.4 million.

Analysts, on average, forecast earnings of 50 Canadian cents a share, and sales C$790 million, according to Thomson Reuters I/B/E/S.

Sales from Linamar's powertrain unit increased by 5.5 percent to C$671.4 million on the back of U.S. consumer demand as well as additional sales from expanded and new facilities and new business in Canada, Mexico and Asia, Linamar said.

Sales at the company's smaller industrial unit increased 14.2 percent to C$102 million.

Linamar no longer provides a financial outlook. ($1 = 1.0032 Canadian dollars)

(Reporting by Nicole Mordant in Vancouver; Editing by Leslie Gevirtz)