Linamar Corporation (TSX:LNR)



--  Sales increase 14.8% over the second quarter of 2011 ("Q2 2011") to
    reach $852 million; 
--  Operating earnings up 47.7% over Q2 2011 to reach $64.7 million; 
--  EPS is up 51.2% over Q2 2011 to reach $0.65; 
--  New business wins continue to be strong, launch book at more than $2.3
    billion; 
--  Industrial segment sales up 48.6% over Q2 2011 
--  Industrial segment operating earnings return to double digit
    profitability of 10.1%; 
--  Powertrain/Driveline segment sales up 9.5% and operating earnings up
    14.8%; 
--  Return on Capital Employed improved by 35.9% from Q2 2011 to reach
    12.5%; 
--  Return on Equity reaches 17.3%; and 
--  Positive Cash Flow reduces Net Debt by nearly $50 million from the first
    quarter of 2012 ("Q1 2012) 

                                                                            
                                     Three Months Ended    Six Months Ended 
                                                June 30             June 30 
                                         2012      2011      2012      2011 
(in millions of dollars, except                                             
 earnings per share figures)                $         $         $         $ 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Sales                                   852.3     742.7   1,692.1   1,417.9 
Operating Earnings (Loss)                                                   
  Powertrain/Driveline                   49.7      43.3     100.8      81.5 
  Industrial                             15.0       0.5      21.5      (1.5)
----------------------------------------------------------------------------
Operating Earnings (Loss)                64.7      43.8     122.3      80.0 
                                                                            
Net Earnings Attributable to                                                
 Shareholders of the Company             42.1      28.0      81.7      52.9 
                                                                            
----------------------------------------------------------------------------
Earnings per Share                       0.65      0.43      1.26      0.82 
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Operating Highlights

Sales for the second quarter of 2012 ("Q2 2012") were $852.3 million, up $109.6
million from $742.7 million in Q2 2011.


Sales for the Powertrain/Driveline segment increased by $61.0 million, or 9.5%
in Q2 2012 to $703.7 million compared to $642.7 million in Q2 2011. The sales
increase in the first quarter was impacted by:




--  significant levels of newly launched programs in each of Canada, Mexico
    and Asia from the Company's substantial book of launch business; 
--  additional sales from new and expanded facilities such as the Company's
    new German facility; and 
--  higher volumes on increased consumer demand in the US; 
--  offset somewhat by decreased consumer demand in Europe. 



Industrial segment sales increased 48.6%, or $48.6 million from Q2 2011 to
$148.6 million. The sales increase was: 




--  primarily due to significant increases in demand in the access equipment
    markets resulting from fleet replacement initiatives. 



The company's operating earnings for Q2 2012 were $64.7 million. This compares
to $43.8 million in Q2 2011, an increase of $20.9 million.


Q2 2012 operating earnings of $49.7 million for the Powertrain/Driveline segment
were higher by $6.4 million from operating earnings of $43.3 million in Q2 2011.
The segment experienced the following in Q2 2012:




--  improved margins as production volumes increased on launching and mature
    programs; and 
--  lower amount of start-up costs in comparison to the level of start-up
    activity in Q2 2011.  



The Q2 2012 operating earnings for the Industrial segment was $15.0 million, a
2900% improvement from operating earnings of $0.5 million in Q2 2011. The
Industrial operating earnings were predominantly driven by:




--  margin improvements on the increased volumes in the access equipment
    market; and 
--  favourable mix towards higher margin sales; partially offset by 
--  launch costs associated with the energy programs. 



"We are delighted to register another record quarter in Q2 on both sales and
earnings," said Linamar CEO Linda Hasenfratz. "Earnings growth is outpacing
sales growth by a factor of 3, the Industrial segment continues to perform very
well and we continue to see great improvements in ROCE and ROE. In addition with
a solid quarter of free cash flow we continue to drive a very strong balance
sheet at Linamar. Our launches are driving great growth in the near term, and
our competitive strength and an opportunistic market is helping us build for
long term sustainable growth at Linamar." 


Dividends

The Board of Directors today declared an eligible dividend in respect to the
quarter ended June 30, 2012 of CDN$0.08 per share on the common shares of the
company, payable on or after September 13, 2012 to shareholders of record on
August 24, 2012.


Risk and Uncertainties (forward looking statements)

Linamar no longer provides a financial outlook. 

Certain information provided by Linamar in these unaudited interim financial
statements, MD&A and other documents published throughout the year that are not
recitation of historical facts may constitute forward-looking statements. The
words "estimate", "believe", "expect" and similar expressions are intended to
identify forward-looking statements. Persons reading this report are cautioned
that such statements are only predictions and the actual events or results may
differ materially. In evaluating such forward-looking statements, readers should
specifically consider the various factors that could cause actual events or
results to differ materially from those indicated by such forward-looking
statements.


Such forward-looking information may involve important risks and uncertainties
that could materially alter results in the future from those expressed or
implied in any forward-looking statements made by, or on behalf of, Linamar.
Some risks and uncertainties may cause results to differ from current
expectations. The factors which are expected to have the greatest impact on
Linamar include but are not limited to (in the various economies in which
Linamar operates): the extent of OEM outsourcing, industry cyclicality, trade
and labour disruptions, pricing concessions and cost absorptions, delays in
program launches, the Company's dependence on certain engine and transmission
programs and major OEM customers, currency exposure, and technological
developments by Linamar's competitors.


A large proportion of the Company's cash flows are denominated in foreign
currencies. The movement of foreign currency exchange rates against the Canadian
dollar has the potential to have a negative impact on financial results. The
Company has employed a hedging strategy as appropriate to attempt to mitigate
the impact but cannot be completely assured that the entire exchange effect has
been offset.


Other factors and risks and uncertainties that could cause results to differ
from current expectations are discussed in the MD&A and include, but are not
limited to: fluctuations in interest rates, environmental emission and safety
regulations, governmental, environmental and regulatory policies, and changes in
the competitive environment in which Linamar operates. Linamar assumes no
obligation to update the forward-looking statements, or to update the reasons
why actual results could differ from those reflected in the forward-looking
statements.


Conference Call Information

Q2 2012 Conference Call Information 

Linamar will hold a conference call on August 8, 2012 at 5:00 p.m. EST to
discuss its second quarter results. The numbers for this call are (647) 427-3383
(local/overseas) or (888) 424-9894 (North America) confirmation number 76899563,
with a call-in required 10 minutes prior to the start of the conference call.
The conference call will be chaired by Linda Hasenfratz, Linamar's Chief
Executive Officer. A copy of the company's quarterly financial statements,
including the Management's Discussion & Analysis will be available on the
company's website after 4 p.m. EST on August 8, 2012 and at www.sedar.com by the
start of business on August 9, 2012. A taped replay of the conference call will
also be made available starting at 6:00 p.m. on August 8, 2012 for seven days.
The number for replay is (855) 859-2056, Conference ID 76899563. The conference
call can also be accessed by web cast at www.linamar.com, by accessing the
investor relations/events menu, and will be available for a 7 day period.


Audio only streaming of the conference call available. Please go to our website
(www.linamar.com) and follow the link.


Q3 2012 Conference Call Information 

Linamar will hold a conference call on November 14, 2012 at 5:00 p.m. EST to
discuss its third quarter results. The numbers for this call are (647) 427-3382
(local/overseas) or (888) 424-9894 (North America) confirmation number 12303441,
with a call-in required 10 minutes prior to the start of the conference call.
The conference call will be chaired by Linda Hasenfratz, Linamar's Chief
Executive Officer. A copy of the company's quarterly financial statements,
including the Management's Discussion & Analysis will be available on the
company's website after 4 p.m. EST on November 14, 2012 and at www.sedar.com by
the start of business on November 15, 2012. A taped replay of the conference
call will also be made available starting at 11:00 p.m. on November 14, 2012 for
seven days. The number for replay is (855) 859-2056, Conference ID 12303441. The
conference call can also be accessed by web cast at www.linamar.com, by
accessing the investor relations/events menu, and will be available for a 7 day
period.


Audio only streaming of the conference call available. Please go to our website
(www.linamar.com) and follow the link.


Linamar Corporation (TSX:LNR) is a diversified global manufacturing Company of
highly engineered products powering vehicles, motion, work and lives. The
Company is made up of 2 operating segments - the Powertrain/Driveline segment
and the Industrial segments which are further divided into 4 key divisions -
Manufacturing, Driveline, Industrial Commercial Energy ("ICE") and Skyjack, all
world leaders in the design, development and production of highly engineered
products. The Company's Manufacturing and Driveline divisions focus on precision
metallic components, modules and systems for engine, transmission and driveline
systems designed for passenger vehicle markets. The ICE group concentrates on
similar products for on and off highway vehicle, energy and other industrial
markets. The Company's Skyjack division is noted for its innovative, high
quality mobile industrial equipment, notably its class-leading aerial work
platforms and telehandlers. With more than 16,800 employees in 39 manufacturing
locations, 5 R&D centers and 15 sales offices in 12 countries in North America,
Europe and Asia, Linamar generated sales of more than $2.8 Billion in 2011. For
more information about Linamar Corporation and its industry leading products and
services, visit www.linamar.com.
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