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Linamar Opts for Slower Growth, Stronger Cash Flow
Canada's Linamar Corp., a supplier of powertrain systems, is pushing back its goal of tripling annual sales and net profit to C$10 billion ($9.2 billion) and C$1 billion, respectively, by 2020, Bloomberg News reports.
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Canada's Linamar Corp., a supplier of powertrain systems, is pushing back its goal of tripling annual sales and net profit to C$10 billion ($9.2 billion) and C$1 billion, respectively, by 2020, Bloomberg News reports.
CEO Linda Hasenfratz cited the original targets early last year. Linamar posted record sales of C$3.6 billion and record earnings of C$230 million in 2013.
Hasenfratz says the company now aims for 10% annual growth, a pace that would enable it to reach the original targets in 2023 or 2024.
She says a slower pace will assist cash flow and boost shareholder returns by reducing the annual cost of growth, including the expense of training new staffers.
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