Strong quarter for Linamar

Article Excerpt

LINAMAR CORP. $62 is a buy. The company (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 61.6 million; Market cap: $3.8 billion; Price-to-sales ratio: 0.4; Dividend yield: 1.6%; TSINetwork Rating: Average; www.linamar.com) makes a variety of automotive parts, including cylinder heads and cylinder blocks. It also makes self-propelled, scissor-type work platforms under the Skyjack brand, as well as agricultural harvesting equipment. The company’s revenue in the three months ended June 30, 2024, rose 11.6%, to $2.85 billion from $2.55 billion a year earlier. That’s mainly due to recent acquisitions and new contracts. Sales of automotive equipment (69% of the total) improved 10.5%, while sales of industrial products (31%) gained 14.1%. Earnings before unusual items also rose 17.2%, to $3.06 from $2.61. Linamar is a buy. buy…