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Linamar Delivers Fifth Consecutive Year of Record Results on Double Digit Top and Bottom Line Growth

Sales increase 24% over 2014 to reach $5.2 billion; Operating earnings increase 33% over 2014 to reach $597.0 million; Net earnings up 36% and earnings per share up 36% over 2014 reaching $436.7 million and $6.71 respectively; Continued business wins drive launch book to nearly $3.8 billion; Industrial segment delivers excellent sales and operating earnings growth with operating earnings up 42% to $156.2 million on a sales increase of 23%;
Powertrain/Driveline delivers excellent sales and operating earnings growth as well with operating earnings up 31% to $440.8 million from 2014 on a sales increase of 24%; and Content per vehicle growth in every market and market share growth on booms and telehandlers.

Guelph - Sales for the fourth quarter of 2015 ("Q4 2015") were $1,243.0 million, up $240.0 million from $1,003.0 million in Q4 2014.

Operating Highlights

Sales for the Powertrain/Driveline segment ("Powertrain/Driveline") increased by $220.6 million, or 25.1% in Q4 2015 compared with Q4 2014. The sales increase in Q4 2015 was impacted by:

• higher sales resulting from favourable changes in foreign exchange rates;

• the acquisition of the forging businesses in Europe in Q1 2015; and

• significant levels of newly launched programs in North America and Europe.

The Industrial segment ("Industrial") product sales increased 15.8% or $19.4 million to $142.5 million in Q4 2015 from Q4 2014. The sales increase was due to:

• higher sales resulting from favourable changes in foreign exchange rates;
• significant market share growth for booms in North America, Europe and Asia Pacific;
• market share growth for scissors in Asia Pacific; and
• market share growth for telehandlers in North America; partially offset by
• somewhat lower sales for scissors in North America.

The company's operating earnings for Q4 2015 were $131.4 million. This compares to $101.1 million in Q4 2014, an increase of $30.3 million.

Q4 2015 operating earnings for Powertrain/Driveline were higher by $24.0 million or 27.6% over Q4 2014. The Powertrain/Driveline segment experienced the following in Q4 2015:

• improved earnings as production volumes increased on launching programs;
• higher earnings resulting from favourable changes in foreign exchange rates across multiple currencies and Linamar's growing global presence; and
• earnings related to the acquisition of the forging businesses; partially offset by
• increased management and sales costs supporting growth.

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1 For more information refer to the section entitled "Non-GAAP and Additional GAAP Measures" in the Company's separately released Management's Discussion and Analysis ("MD&A").

Industrial segment operating earnings in Q4 2015 increased $6.3 million or 45.0% over Q4 2014. The increase in Industrial operating earnings was predominantly driven by:

• higher margins resulting from favourable changes in foreign exchange rates;
• increased volumes as described above; partially offset by
• increased management and sales costs supporting growth.

"We are thrilled to deliver another record year on sales and earnings at Linamar, our fifth consecutive year of doing so," said Linamar CEO Linda Hasenfratz. "Financially we again saw strong, industry leading double digit top and bottom line growth. Strategically, we have made enormous progress in 2015 in our vertical integration strategy, successfully acquiring or joint venturing with three world leading forging and aluminum casting companies. We are perfectly positioned for continued exciting market share growth driving continued exceptional performance in 2016 and beyond."

Dividends

The Board of Directors today declared an eligible dividend in respect to the quarter ended December 31, 2015 of CDN$0.10 per share on the common shares of the company, payable on or after April 15, 2016 to shareholders of record on April 1, 2016.

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