Linamar Corporation

Linamar Corporation

June 22, 2009 08:00 ET

Linamar Announces New European Contract

GUELPH, ONTARIO--(Marketwire - June 22, 2009) - Linamar (TSX:LNR) announces that it has been awarded a multi-year supply contract for certain driveline modules with a major European auto manufacturer.

The start of production is scheduled for 2011. At anticipated volumes and current exchange rates, Linamar expects annualized sales associated with this program to be in excess of $200 million (CDN) once the program reaches full production, which is expected to occur in 2014.

"This is a transformational business win for our European group testament to the dedication and focus of our team to realize our Globalization and Diversification strategies," said Linamar CEO Linda Hasenfratz. "It is also a huge win for our new driveline systems businesses which are levering off a global focus on AWD systems."

Linamar Corporation (TSX:LNR) is a diversified global manufacturing company of highly engineered products. The company's Powertrain and Driveline focused divisions are world leaders in the collaborative design, development and manufacture of precision metallic components, modules and systems for global vehicle and power generation markets. The company's Industrial division is a world leader in the design and production of innovative mobile industrial equipment, notably its class-leading aerial work platforms and telehandlers. With more than 9,000 employees in 37 manufacturing locations, 5 R&D centers and 11 sales offices in Canada, the US, Mexico, Germany, Hungary, the UK, China, Korea and Japan Linamar generated sales of over $2.2 Billion in 2008. For more information about Linamar Corporation and its industry leading products and services,

Certain information regarding Linamar set forth in this document, including management's assessment of the Company's future plans and operations may constitute forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results may differ materially from these anticipated in the forward-looking statements due to factors such as customer demand and timing of buying decisions, product mix, competitive products and pricing pressure. In addition, uncertainties and difficulties in domestic and foreign financial markets and economies could adversely affect demand from customers. These factors, as well as general economic and political conditions, may in turn have a material adverse effect on the Company's financial results. The Company 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.

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