Linamar Corporation Provides Commentary on Second Quarter 2022 External Market Conditions

GUELPH, ON, July 7, 2022 /CNW/ – Linamar Company (TSX: LNR) today released information on market activity seen during the second quarter of 2022, along with commentary on other recent industry developments. Commentary provides updates on the latest available industry terms in the key access, agriculture and mobility markets in which it operates. The commentary on the following slides is an update to the Q2 market outlook that was shared during our Q1 earnings call on May 11, 2022.

Strong points:

  • In the Mobility segment:
    • The second quarter global light vehicle production forecast fell by 1.04 million units and the full year 2022 forecast was revised down by 265,000 units
      • Decommissioning mainly concentrated in Asia Pacific as a direct result of COVID lockdowns in China as expected. North America and Europe are relatively unchanged from the time of our last Outlook
      • Majority of volume loss in Q2 should be recovered in H2
  • In the Industrial segment:

Agriculture

    • The Salford acquisition closed June 1, 2022adding to sales in Q2 and H2 2022
    • North America combine retail sales down 11% in Q2 QTD (2 months April-May), mainly due to supply-side constraints

Access market

    • Global AWP market down 7% Q2 QTD (2mth Apr-May), largely due to COVID lockdowns in China
    • North American and Europe/Middle East/Africa markets are up from the previous year
  • In all markets:
    • Markets generally in line with expectations, a little additional softness on the industrial side
    • Supply chain constraints continue to impact our ability to ship to meet market demand as well as commodity pricing and logistics costs

A presentation deck highlighting the details is available and has been posted on by Linamar website today at www.linamar.com/investors under the section titled Reports, Presentations and Public Filings, or directly via the following link https://www.linamar.com/wp-content/uploads/2022/07/Q2-2022-Mid-Quarter-Market-Update.pdf.

Linamar Company (TSX: LNR) is an advanced manufacturing company where the intersection of advanced technology and deep manufacturing expertise creates solutions that propel vehicles, movement, work and life into the future. The Company is comprised of two operating segments – the Industrial segment and the Mobility segment, both global leaders in manufacturing solutions and world-class developers of highly engineered products. The industrial sector includes Skyjack, MacDon and Salford. Skyjack manufactures scissor, boom and telescopic lifts for the aerial work platform industry. MacDon manufactures combine heads and self-propelled windrowers for the agricultural harvesting industry. Salford also supplies the agricultural market with tillage and fertilizer application equipment. The Mobility segment is subdivided into three regional groups: North America, Europe and Asia Pacific. Within the Mobility segment, the regional groups are vertically integrated operations combining expertise in lightweight metal casting, forging, machining and assembly for the global electrified and conventionally powered vehicle markets. The Mobility segment’s products focus on both components and systems for new energy powertrains, body and chassis, powertrain, engine and transmission systems of these vehicles. In addition to the recently formed eLIN Product Solutions Group which focuses on electrification, McLaren Engineering provides design, development and testing services for the Mobility segment. by Linamar The recently announced medical solutions group, Linamar MedTech, is focused on manufacturing solutions for medical devices and precision medical components. Linamar has 26,550 employees in 65 manufacturing sites, 14 R&D centers and 28 sales offices in 17 countries in North and South America, Europe and Asiawhich generated sales of $6.5 billion in 2021. For more information on Linamar Company and its cutting-edge products and services, visit www.linamar.com or follow us on our social networks.

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Shirlene J. Manley