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UPDATE 2-Linamar profit beats estimates on Montupet buy

Published 2017-03-08, 06:22 p/m
© Reuters.  UPDATE 2-Linamar profit beats estimates on Montupet buy
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(Adds CEO comment, paragraph 4)

March 8 (Reuters) - Canadian auto parts maker Linamar Corp LNR.TO on Wednesday reported a 21.8 percent increase in quarterly profit, helped in part by the acquisition of France's Montupet SA last year.

Linamar Corp bought Montupet in 2016 for 771 million euros ($915 million) to boost exposure to manufacturers like Volkswagen AG VOWG_p.DE and Peugeot SA PEUP.PA .

The deal gave Linamar access to Montupet's complex aluminium castings technology.

The company expects topline growth in the mid-to-high single digits in 2017, Chief Executive Officer Linda Hasenfratz told analysts on a conference call.

Net earnings rose to C$116.1 million ($86.07 million), or C$1.76 per share, in the fourth quarter ended Dec. 31, from C$95.3 million, or C$1.45 per share, a year earlier.

Analysts on average had expected earnings of C$1.66 per share, according to Thomson Reuters I/B/E/S.

The company also raised its dividend for the fourth quarter to 12 Canadian cents per share, from 10 Canadian cents.

Sales rose 10.6 percent to C$1.37 billion in the quarter, missing estimates of C$1.41 billion. = 1.3489 Canadian dollars)

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