Auto parts company's acquisition of French manufacturer Montupet bolsters earnings
GUELPH, Ont.—Canadian auto parts company Linamar Corp. has delivered another quarter of double-digit earnings growth.
The company reported its fourth quarter and overall 2016 results March 8.
Linamar’s net earnings for the final three months of 2016 increased to $116.1 million from $95.3 million the year before and to $522.1 million for the year against $436.7 million in 2015.
CEO Linda Hasenfratz noted the final three months of the year mark the company’s 22nd consecutive quarter of double digit operating earnings growth.
“Consistent sustainable growth is a key element of Linamar’s story, as is the enormous markets we are focused on which just keep feeding our backlog to drive continued growth in the future,” she said in a statement.
The company’s results—particularly in its Powertrain/Driveline division—were bolstered by its $1.16 billion acquisition of France’s Montupet, which hit the books in early 2016.
Linamar’s revenue was also up on the year. It posted sales of $6 billion for 2016, compared to $5.1 billion the year before.
Along with its financial results, the Guelph, Ont.-based company said March 8 it will raise its dividend 20 per cent—from 10 cents per share to 12 cents.
Despite beating analyst earnings estimates, Linamar shares were trading down about 3 per cent in early trading March 9.