Linamar profit grows as cost-cutting, agriculture pay off for automotive manufacturer
Posted November 10, 2020 4:37 pm.
Last Updated November 10, 2020 4:38 pm.
This article is more than 5 years old.
GUELPH, Ont. — Linamar says this summer’s quarterly profit grew compared with last year as it cut capital expenditures by more than 50 per cent and sold more farming equipment.
The vehicle parts manufacturer reported sales of almost $1.64 billion in the three months ending Sept. 30, down from $1.74 billion in the third quarter of 2019.
But net earnings rose to $125.5 million, or $1.92 per diluted share, compared with earnings of $98.2 million, or $1.50 per diluted share, a year ago.
The company also doubled its third-quarter dividend to 12 cents per share.
Analysts surveyed by Refinitiv expected the Guelph, Ont.-based company to report revenue of $1.59 billion and net income of $67.2 million, or $1.15 per share.
Linmar’s improved earnings come after the company updated its third-quarter guidance in early October, saying that COVID-19 had not hurt U.S. vehicle sales or manufacturing in Asia as much as previously expected.
This report by The Canadian Press was first published Nov. 10, 2020.
Companies in this story: (TSX:LNR)
The Canadian Press
