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
-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) -

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