Linamar Corp. posted report income and improved earnings within the second quarter of 2023, as its industrial unit confirmed continued power and automotive components gross sales stayed on the rebound from their pandemic-era lows.

The Guelph, Ont.-based provider stated gross sales totaled $2.55 billion within the quarter, up from $1.98 billion in the identical interval a yr earlier. Normalized earnings had been $2.61 per share, up 55 per cent from $1.68 in the identical three-month span of 2022.

Linamar CEO Linda Hasenfratz stated firm margins proceed to “development upwards” from their low level in late 2021 when car manufacturing slowed to a crawl amid the worldwide microchip scarcity.

“This quarter has been one other instance of Linamar’s diversification technique once more paying dividends in driving constant, sustainable earnings progress,” she stated on an Aug. 9 convention name with buyers and analysts.

Linamar’s mobility phase had gross sales of $1.77 billion within the second quarter, up 20 per cent from the identical interval of 2022. Its industrial phase recorded even stronger progress, posting income of $777.3 million, up 54 per cent from the comparable quarter final yr.

Going ahead, the corporate stated it expects to keep up double-digit gross sales progress throughout each its mobility and industrial items within the again half of 2023. It additionally forecasts one other yr of double-digit progress in 2024.

Elements for battery-electric and hybrid autos will likely be a big a part of this growth.

The rising phase is “dramatically shifting the panorama” of the corporate’s mobility enterprise, Hasenfratz stated. Electrified or propulsion-agnostic elements make up about one-third of Linamar’s mobility gross sales in the present day. That determine is predicted to rise to 56 per cent by 2027, inner estimates present.

To construct focus within the space, the corporate additionally introduced the formation of a brand new company unit. The Linamar Buildings Group will embody a number of newly acquired battery enclosure vegetation in Europe and the USA, its Mills River castings plant in North Carolina and a brand new giga castings plant underneath building in Welland, Ont.

Hasenfratz stated the brand new international group, which has bookings of about $1 billion in the present day, will “play a pivotal function” in Linamar’s automotive enterprise because the business shifts to EVs.

The corporate can be retaining the door open to acquisitions, Hasenfratz added.

“Our sturdy steadiness sheet and liquidity means now we have the flexibility to proceed to pursue acquisition alternatives as they come up.”