Topic: How To Invest

The Successful Investor Hotline – Friday, March 10, 2017

Article Excerpt

LINAMAR CORP., $60.34, Toronto symbol LNR, makes a variety of automotive parts, including cylinder heads, cylinder blocks, camshafts, crankshafts and connecting rods. The company also makes self-propelled, elevating work platforms. It sells those products under the Skyjack name. In February 2016, Linamar purchased Montupet, a French maker of aluminum car parts, with global operations. It assumed $97.5 million of the business’s debt in addition to paying $1.2 billion for its shares. The purchase will let the company profit as automakers use aluminum to make cars lighter and boost fuel efficiency. Thanks to these new operations, Linamar’s revenue in the three months ended December 31, 2016, rose 10.6%, to $1.4 billion from $1.2 billion a year earlier. Revenue from the company’s Powertrain/Driveline business (89% of total revenue) gained 11.8% in the quarter. Sales of its industrial equipment (11%) rose 1.5%. Linamar’s earnings in the quarter rose 21.8%, to $116.1 million, or $1.76 a share…