Linamar Corporation Provides Commentary on the External Market Conditions of Q2 2022

GUELPH, ON, July 7, 2022 /CNW/ - Linamar Corporation (TSX: LNR) today released insights regarding the market activity observed during Q2 2022, as well as commented on other recent industry developments. The comments provide updates on the latest available industry conditions 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 which was shared during our Q1 Earnings Call on May 11, 2022.

Highlights:

• In the Mobility segment:
  
  
• Q2 global light vehicle production forecast decreased by 1.04M units and 2022 full-year forecast revised down by 265,000 units
• Downgrade primarily 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 expected to be recovered in H2
• In the Industrial segment:

Agriculture

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

Access Market

• AWP global market down 7% Q2 QTD (2 months April-May), largely due to COVID lockdowns in China
• North American and Europe/Middle East/Africa markets are up vs prior year 

• In overall markets:
  
  
• Markets generally in line with expectations, some additional softness on the industrial side
• Supply chain constraints continue to impact our ability to ship to meet market demand as well as costs in terms of both commodity pricing and logistics

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

Linamar Corporation (TSX: LNR) is an advanced manufacturing company where the intersection of leading-edge technology and deep manufacturing expertise is creating solutions that power vehicles, motion, work and lives for the future. The Company is made up 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 segment is comprised of Skyjack, MacDon and Salford. Skyjack manufactures scissor, boom and telehandler lifts for the aerial work platform industry. MacDon manufactures combine draper headers and self-propelled windrowers for the agricultural harvesting industry. Salford also supplies the agriculture market with farm tillage and crop fertilizer applicator 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 light metal casting, forging, machining and assembly for both the global electrified and traditionally powered vehicle markets. The Mobility segment products are focused on both components and systems for new energy powertrains, body and chassis, driveline, engine and transmission systems of these vehicles. In addition to the recently formed eLIN Product Solutions Group that focuses on Electrification, McLaren Engineering provides design, development, and testing services for the Mobility segment. Linamar's recently announced medical solutions group, Linamar MedTech, focuses on manufacturing solutions for Medical Devices and Precision Medical Components.  Linamar has 26,550 employees in 65 manufacturing locations, 14 R&D centres and 28 sales offices in 17 countries in North and South America, Europe and Asia, which generated sales of $6.5 billion in 2021. For more information about Linamar Corporation and its industry-leading products and services, visit www.linamar.com or follow us on our social media channels.

SOURCE Linamar Corporation

Linda Hasenfratz at [phone], Guelph, Ontario