Linamar Corporation Business Report FY ended Dec. 2019
Financial Overview |
(in million CAD) |
FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | Rate of change (%) | Factors | |
Overall | ||||
-Net Sales | 7,416.6 | 7,620.6 | (2.7) | - |
-Operating Income | 624.5 | 819.9 | (23.8) | - |
Transportation Segment | ||||
-Net Sales | 5,636.0 | 5,734.3 | (1.7) | 1) |
-Operating Income | 388.2 | 473.7 | (18.0) | - |
Factors
1) Transportation segment sales
-In the fiscal year ended December 31, 2019, sales in the Company’s Transportation segment decreased by 1.7% compared to the previous year to CAD 5,636.0 million. The factors are as follows;
- A reduction in sales as a result of the United Auto Workers Union strike at General Motor's US locations that continued into Q4 2019;
- A reduction of sales related to certain programs that are naturally ending;
- An overall reduction in passenger vehicle volumes in three key markets and in medium-duty and heavy-duty trucks in North America;
- An unfavorable impact on sales from the changes in foreign exchange rates from Q4 2018 (there was a favorable impact on sales from the changes in foreign exchange rates for the first nine months of the year).
-Additional sales from programs that are currently launching partially offset the above effects.
R&D Activity
-Key technologies related to lightweight solutions, innovation in design, development and manufacturing, and green and connected vehicles are as follows:
Lightweight Solutions
-The Company produces the following lightweight solutions that achieve increased fuel efficiency and CO2 reduction;
- High pressure die-casting for structural components (weight reduction of 45 percent compared to conventional sheet metal solutions);
- Adapting forged gear designs and processes to achieve near net shape
Innovation in design, development and manufacturing
-The Company provides the following cost-effective solutions to OEMs:
- Fully integrated eAxle systems for hybrid and electric vehicles
- Integrated hydroformed assembled camshaft within one-piece cast aluminum carrier housing with unique-to-Linamar manufacturing process
Green and connected vehicles
-The Company is developing the following solutions;
- Vehicle to vehicle communication for smart all wheel drive capabilities delivering information over dedicated short-range communication
- Engineering & manufacturing next-generation hydrogen storage tank for alternative fuel solutions
Capital Expenditure |
(in million CAD) |
FY ended Dec. 31, 2019 | FY ended Dec. 31, 2018 | FY ended Dec. 31, 2017 | |
Overall | 525.4 | 537.3 | 410.0 |