11.05.2017

Skyjack storms into 2017

Skyjack has reported an exceptionally strong first quarter in terms of revenues and profits breaking its previous records.

Total revenues for the first three months jumped almost 41 percent to $286.9 million with higher sales of booms, scissor lifts and telehandlers, along with gains from beneficial currency movements - Skyjack reports in Canadian dollars. Operating profits leapt 63 percent to $45.8 million thanks to higher margins and a better product mix, but also due to comparison with a bad quarter in 2016 when the company wrote off a large bad debt expense.

Skyjack is part of the Linmar automotive group which also posted a strong first quarter with revenues up nine percent to $1.66 billion with pre-tax profits up 13 percent to $188 million.

Linmar chief executive Linda Hasenfratz said: “We have had another solid start to the year at Linamar with strong results in both segments,” (Automotive and Industrial which is largely Skyjack). “This is our 23rd consecutive quarter of double digit operating earnings growth which is fantastic. We are also excited about the outsourcing opportunities we are seeing in non-traditional areas of the powertrain which we feel are indicative of future OEM plans.”

Vertikal Comment

No matter how you look at it this is a first class start to the year for Skyjack in a quarter when its two largest competitors both reported declines. The biggest difference is that Skyjack was more bullish on 2017 when forecasts were being set and forward orders placed for first quarter production, a comparison with a tough quarter 12 months earlier and exchange rate gains provided the icing on the cake.

You might think that Skyjack is most at risk from the coming of age of Chinese scissor lift manufacturers, including the recent launch of Chinese built JCB and GMG slab scissor lifts. However Skyjack appears to have full confidence in its business model of having product in stock, ready to deliver and being really quick and easy to deal with.

It is good to see such positive numbers and it will be interesting to see how it develops over the rest of the year. Indications are that the second quarter will also be a very positive one, so expect a solid first half.