Skyjack Contributes to Linamar's Postive 1Q Results

May 19, 2004- Linamar, the parent company for Skyjack Inc., Guelph , Ontario , announced on May 12 its financial results for the first quarter in which sales increased by 15.8%, or $59.7 million, to $436.9 million compared to $377.2 million in the same quarter last year. Exceptional business performance by Skyjack was one reason stated for the company's positive first quarter results.

Skyjack, which is part of the Industrial Products group, achieved an exceptional sales level in the first quarter of 2004, building on similar results in the fourth quarter of 2003. In this quarter, sales of industrial products grew by $29.6 million to $60.2 million.

Operating earnings, as reported in the "Other" segment improved in the quarter from a loss of $6.6 million in the first quarter of 2003 to an income of $3.8 million in 2004-an increase of $10.4 million. Improved market conditions and a re-focus of Skyjack's operations are credited for the change in operating earnings. Skyjack has reduced costs by altering its manufacturing strategy from one of a complete component manufacturer to a design, assembly, key component manufacturing, marketing, and distribution strategy.