The following is a summary of the Linamar Corporation (LIMAF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Linamar Corporation reported record annual sales of $9.73 billion, with Q4 sales up 19% to $2.45 billion.
The company's earnings per share for the year was $8.78, up 40%, and for Q4 it was $1.98, an increase of 23%.
Margins expanded to 5.6% for the year, and net debt stood at $1.12 billion at the end of Q4.
The company has been consistently generating positive free cash flow for 11 consecutive years.
The Q4 gross margin was $320.2 million, up from the last year and the net debt to EBITDA rose to 0.85 times.
Despite negative effects from currency fluctuations, the company forecasts significant margin expansion in their mobility business in 2024.
Business Progress:
The company finalized the acquisitions of Mobex and Bourgault, both expected to immediately contribute to earnings and enhance proprietary technology.
Linamar launched businesses in the Mobility segment, representing incremental sales of $700 million.
The Industrial and Mobility groups are mutually supporting each other's growth by sharing resources and investment funds.
They plan for margin and top-line growth across the agriculture, Skyjack, and industrial businesses in 2024.
They have introduced new products such as Skyjack's e-drive electric scissors and MacDon's new FD series flex corn header.
The company maintains flexibility in their manufacturing processes, able to adjust between EV and ICE production depending on market trends.
Linamar Corporation plans for their net debt to EBITDA ratio to remain under 1.5 with some brief excursions above for strategic opportunities like acquisitions.
More details: LINAMAR CORP IR
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