Latest news with #LinamarCorporation
CTV News
4 days ago
- Automotive
- CTV News
‘Great war chest of ability': Linamar CEO highlights diversity as part of portfolio growth
Jim Jarrell, CEO and President of Linamar Corporation, joins BNN Bloomberg to discuss the company's outlook as well as its growth opportunities. The president and CEO of a Canadian advanced manufacturing company says it's important to service diversified markets and industries to handle uncertain economic times, such as the ongoing trade war between Canada and the U.S., with confidence. Guelph-based Linamar Corporation offers products for mobility and industrial sectors, creating parts for agricultural producers, medical professionals and electrical vehicle developers. 'To me, I think diversity adds strength, I think like for all of us in Canada, it's the same thing,' Jim Jarrell told BNN Bloomberg Thursday morning. 'Diversity. We've now found out with the U.S., we need to make a deal with them, but we also have to think for the future and diversify our portfolio to the whole world. That's sort of what our plant at Linamar is. To make sure you're diversified and can handle the uncertainty times and you got to navigate through those with confidence.' The company reported net earnings of $126.9 million in its second quarter, down from $174.1 million a year earlier, according to a news release. The company states earnings amounted to $2.12 per diluted share down from $2. 'Our mobility came front and centre, while our industrial was down a little bit,' said Jarrell. 'That balancing act takes place nicely. A couple of years ago it was the opposite side.' Sales totalled $2.6 billion during the quarter, down from $2.8 billion the year before. The company reported free cash flow of $177.6 million, up $110.5 million from the year before. Linamar closed in on mergers and acquisitions with companies facing distress to enhance its operations and cater to new audiences around the world. Linamar acquired Bourgault Industries Ltd. in 2024, American automotive supplier Dura Shiloh in 2023 and the Salford Group in 2022. It also developed Linamar MedTech in 2022. Jarell said a lot of distressed companies Linamar has acquired have put in too much capital and are now underperforming financially. 'They need to get support,' said Jarrell. 'What we've been able to do is jump in and create a long-term sustainable company, and we do have to fix it. We have to go in and fix it, and you have to work with your customers to fix that and come up with commercial arrangements that make sense for a long-term survivable company. There is absolutely no shortage of these opportunities out there and our customers are coming to us because, again, there is a strong balance sheet. Free cash flow in the quarter of $180 million, which is fantastic. We have a great war chest of ability to do this.' He said the company, and it's acquired subsidiaries in Canada and America, remains largely unaffected by tariffs as it is compliant with Canada-United States-Mexico Agreement (CUSMA). Linamar also sources material close to its factories. He did however acknowledge it can be hard to anticipate what could come next. 'I would say predicting the future on this is extremely difficult, because it changes day to day,' said Jarrell.'I think from the mobility side, or the automotive parts industry, my analogy is sort of like an omelet. To unscramble an omelet in this North American three-way parts distribution would be very difficult and very complex to add a tariff into that system. I think it would bring the mobility industry to a halt in a very quick period, just because that supply chain just can't afford that. I think there's been a lot of lobbying on the auto parts side that I think there's a clear understanding from the administration, why that wouldn't be a smart thing to do.
Yahoo
14-04-2025
- Business
- Yahoo
Despite the downward trend in earnings at Linamar (TSE:LNR) the stock increases 3.0%, bringing five-year gains to 56%
While Linamar Corporation (TSE:LNR) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 14% in the last quarter. But the silver lining is the stock is up over five years. Unfortunately its return of 46% is below the market return of 96%. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 28% decline over the last twelve months. Since the stock has added CA$84m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns. Our free stock report includes 4 warning signs investors should be aware of before investing in Linamar. Read for free now. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During five years of share price growth, Linamar actually saw its EPS drop 8.2% per year. Essentially, it doesn't seem likely that investors are focused on EPS. Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead. In contrast revenue growth of 13% per year is probably viewed as evidence that Linamar is growing, a real positive. It's quite possible that management are prioritizing revenue growth over EPS growth at the moment. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free report showing analyst forecasts should help you form a view on Linamar As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Linamar's TSR for the last 5 years was 56%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. While the broader market gained around 9.5% in the last year, Linamar shareholders lost 27% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 9%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 4 warning signs for Linamar that you should be aware of before investing here. There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
CBC
28-01-2025
- Automotive
- CBC
Linamar invests $1B to expand operations and develop EV technologies
Guelph, Ont.-based auto parts manufacturer Linamar Corporation is expanding its operations across the province and creating thousands of jobs by investing $1 billion into the automotive industry. The company's expansion will help to develop key components for the automotive supply chain, including powertrain solutions and technologies for hybrid and electric vehicles (EVs). The announcement was made Tuesday morning at the Frank Hasenfratz Centre for Excellence in Manufacturing in Guelph. "We have close to a billion dollars of work that we are launching right now in our Canadian facilities and we are continuing to quote on record levels of new business opportunities," Linamar's executive chair Linda Hasenfratz said at the announcement. "We expect to generate about $1.5 million of sales from those business wins over time and the opportunities that we are continuing to pursue." The funding will also accelerate advancements in parts manufacturing and semiconductor packaging methods for EV batteries. This will include enhancing vehicle ranging, improving efficiency and reducing charging times. Federal Minister of Innovation, Science and Industry François-Philippe Champagne was at the announcement. "This is great news for the industry, great news for the environment and it's also great news for the workers and communities in Guelph, Saltford, Wellend and Windsor," he said. Ontario's Minister of Economic Development, Job Creation and Trade Vic Fedeli was also in attendance at the announcement and said the province will support the expansion with a further $100 million investment. "With their $1 billion investment, Linamar will create more than 2,300 new, good paying jobs and help ensure our workers remain equipped to develop the innovative technologies of tomorrow," he said. As part of the investment, Linamar also plans to expand the production of eAxle systems and support ongoing advancements in developing hydrogen fuel cell and battery storage technologies.
