Latest news with #LinamarCorp
Winnipeg Free Press
4 days ago
- Automotive
- Winnipeg Free Press
Linamar reports $126.9M Q2 profit, as it remains ‘largely unaffected' by tariffs
GUELPH – Linamar Corp. reported net earnings of $126.9 million during its second quarter, down from $174.1 million a year earlier. The company says its earnings amounted to $2.12 per diluted share, down from $2.82 per diluted share during the same period a year ago. The Guelph, Ont.-based auto parts manufacturer says its sales totalled $2.6 billion during the quarter, down from $2.8 billion during the same period last year. On an adjusted basis, the company says it earned $2.81 per diluted share in the quarter compared with $3.06 per diluted share a year earlier. The company's industrial segment earnings fell in the quarter while earnings in its mobility division rose. Linamar executive chair Linda Hasenfratz says the company has remained largely unaffected by tariffs imposed by the U.S. as its products continue to be CUSMA compliant. This report by The Canadian Press was first published Aug. 13, 2025. Companies in this story: (TSX:LNR)
Yahoo
12-04-2025
- Business
- Yahoo
Making the most of market volatility: FP Video on the latest tariff tangents
As market volatility reigns following the continued chaos of United States President Donald Trump's ever-changing tariff strategies, FP Video talked to two investment specialists who offer their thoughts on where investors looking to capitalize on the uncertainty should put their money. FP Video also spoke with Linamar Corp. executive chair Linda Hasenfratz about the long-term effects that existing levies will have on the Canadian automotive sector. Plus, three ways Canada can cash in on the Arctic. Rebecca Teltscher, portfolio manager at Newhaven Asset Management Inc., talks about the investments she is focusing on to manage extreme market volatility. Kelley Keehn, chief executive of Money Wise Institute, talks about how you can protect yourself against market volatility. Linamar's Linda Hasenfratz talks about how the auto sector must look for opportunities during the ongoing trade war. Unlocking the economic potential of the Canadian Arctic isn't just about natural resources. New mines and pipelines hold promise, but there are other ways to tap into the region's wealth. Here are three alternative opportunities that could bring in big returns. Lessons to lessen tariff impacts: FP Video on Trump's trade war Auto tariffs and the federal election: FP video looks at the trade war's latest Sign in to access your portfolio
Yahoo
07-03-2025
- Business
- Yahoo
Linamar Corp (LIMAF) Q4 2024 Earnings Call Highlights: Strong Cash Flow and Strategic Wins Amid ...
Release Date: March 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Linamar Corp (LIMAF) achieved nearly $800 million in free cash flow for the year, marking an outstanding financial performance. The company delivered another year of double-digit earnings growth and margin expansion despite a down market across all three business segments. Linamar Corp (LIMAF) secured significant new business wins in its mobility segment, boosting its launch book to nearly $3.5 billion. The company maintained a strong balance sheet with a net debt to EBITDA ratio of 0.79%, positioning it well for future opportunities. Linamar Corp (LIMAF) actively returned cash to shareholders through its dividend program and share repurchases, buying back 1.4 million shares under its NCIB program. Sales in the mobility segment decreased by 6% year-over-year, with significant market declines in Europe and North America. The company faced a significant impairment related to a goodwill write-down in Europe due to market deterioration. Tariffs imposed by the US on Canadian and Mexican imports pose a potential risk to Linamar Corp (LIMAF)'s operations and strategic planning. The agriculture industry saw a 17% decline in global volumes, impacting Linamar Corp (LIMAF)'s performance in this segment. The company anticipates continued market softness in 2025, with expected declines in both the industrial and mobility segments. Q: What are the potential impacts of the recent tariffs on Linamar's operations, and how are OEMs responding to the situation? A: Unidentified_2 (Executive): The automotive industry is highly integrated, and shifting production outside of Canada and Mexico within 30 days is unrealistic due to the complexity and investment required. OEMs are likely to focus on illustrating the impact of tariffs and advocating for the benefits of the current integrated supply chain. Unidentified_3 (CEO): OEMs are not considering moving production at this point. They are gathering information and lobbying the government to maintain the current trade setup. Q: How is Linamar managing inventory and competitiveness in light of the tariffs, particularly for the industrial segment? A: Unidentified_3 (CEO): Linamar has built up 6 to 9 weeks of inventory in the US to maintain market share. The company is exploring tools and techniques to manage costs and continue sales. Unidentified_2 (Executive): Linamar's industrial businesses have strong markets in Canada and internationally, and the company is pushing for increased market share in Canada to offset potential softness in the US. Q: Is there a possibility for Linamar to shift production to US facilities in response to tariffs? A: Unidentified_2 (Executive): Shifting production to the US would require enormous investment and is not feasible due to the short-term nature of tariffs. Decisions on production locations are based on long-term fundamentals such as talent availability and cost efficiency. Unidentified_3 (CEO): It takes significant time and investment to tool up production in the US, making it impractical to shift existing production. Q: How is Linamar addressing the challenges in the European market, particularly with EV platforms? A: Unidentified_3 (CEO): Linamar is focusing on right-sizing operations in Europe and leveraging opportunities from distressed suppliers. The company is actively pursuing takeover work and believes there is significant potential in the region. Unidentified_2 (Executive): Linamar's strong financial position and technical capabilities allow it to step in and take over work from suppliers that are struggling. Q: What are the main drivers of margin expansion in Linamar's mobility segment despite flat sales growth? A: Unidentified_3 (CEO): Margin expansion is driven by launching new business, operational focus on cost and cash, and commercial negotiations. Unidentified_2 (Executive): Key factors include commercial agreements, cost improvements, and the impact of right-sizing initiatives in Europe. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
06-03-2025
- Automotive
- Bloomberg
Tariffs Will Cost Automakers Billions, Says Canada's Linamar
Adding steel and aluminum tariffs to auto tariffs would cost carmakers billions of dollars and is 'likely to shut the industry down,' says the head of Canada's second-largest public car parts manufacturer, Linamar Corp. On Tuesday, US President Donald Trump placed 25% tariffs on most Canadian goods, with Canada retaliating on C$30 billion ($21 billion) of US exports, moves that will hit the auto sector particularly hard. Following pleas from car industry leaders, Trump exempted autos and auto parts that are made in compliance with the North American trade agreement from the new tariffs for a month.
