Linamar hikes dividend as earnings rise nearly 22 per cent
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.