Sales jump as chip shortages ease

Article Excerpt

LINAMAR CORP. $60 remains a buy. The company (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing sector; Shares outstanding: 63.6 million; Market cap: $3.8 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.3%; 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. Carmakers are now increasing their production as supplies of computer chips and other components improve. That has spurred demand for Linamar’s products. Sales of its construction and agriculture-related products also continues to rebound as the economy re-opens. Linamar’s sales in the quarter ended June 30, 2022 jumped 25.8%, to $1.98 billion from $1.58 million a year earlier. However, due to higher raw material and labour costs, earnings before unusual items in the quarter rose at a slower rate of 3.1%, to $1.68 a share from $1.63. The company will probably earn $5.90 a share in 2022, and the stock trades at just 10.2…

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