Guelph Ontario-based Linamar Corporation (
TSX:T.LNR,
Stock Forum) delivered solid news for investors today when it announced Q3 sales and earnings growth, along with margin expansion.
Sales were up 15.5% over Q3 from the equivalent period in 2012, hitting $893 million, with operating earnings up 53% in the same period.
Strong cash generation has helped the company reduce net debt by $52.8 million in the quarter.
The market responded positively to the news in the first hour of Thursday trading, with Linamar shares hitting $40.72, up $5.05 from the previous day close of $35.67 and well above the $36.25 52-week high. They maintained that range for the day with a minor spike at the end of trading.
Linamar manufactures engineered powertrain and driveline products that power vehicles.
In early October, the company completed the acquisition of Mubea Motorkomponenten GmbH’s German camshaft manufacturing business.
In a
company news release, Linamar CEO Linda Hasenfratz said, "We are delighted to register another solid quarter of double digit sales and earnings growth along with solid free cash flow, both driving continued building of margins and returns."
She continued, "We saw a huge quarter in new business wins and continue to quote an unprecedented book of new business opportunities. The completion of our assembled camshaft division acquisition will support our future growth by adding another critical tool to our technology and innovation toolbox. The combination of these new business opportunities with the fantastic results for the quarter adds up to a great recipe for continued success."
Linamar will pay a dividend of 8c per share for the quarter.