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Linamar profit beats estimates on Montupet buy
March 8, 2017 / 11:02 PM / 9 months ago

Linamar profit beats estimates on Montupet buy

(Reuters) - Canadian auto parts maker Linamar Corp (LNR.TO) on Wednesday reported a 21.8 percent increase in quarterly profit, helped in part by the acquisition of France’s Montupet SA last year.

Linamar Corp bought Montupet in 2016 for 771 million euros ($915 million) to boost exposure to manufacturers like Volkswagen AG (VOWG_p.DE) and Peugeot SA (PEUP.PA).

The deal gave Linamar access to Montupet’s complex aluminum castings technology.

The company expects topline growth in the mid-to-high single digits in 2017, Chief Executive Officer Linda Hasenfratz told analysts on a conference call.

    Net earnings rose to C$116.1 million ($86.07 million), or C$1.76 per share, in the fourth quarter ended Dec. 31, from C$95.3 million, or C$1.45 per share, a year earlier.

    Analysts on average had expected earnings of C$1.66 per share, according to Thomson Reuters I/B/E/S.

    The company also raised its dividend for the fourth quarter to 12 Canadian cents per share, from 10 Canadian cents.

    Sales rose 10.6 percent to C$1.37 billion in the quarter, missing estimates of C$1.41 billion.

    Reporting By Allison Lampert in Montreal and Vishaka George in Bengaluru; Editing by Matthew Lewis

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