Magna raises sales outlook for 2012

Canada’s Magna International Inc., one of the world’s biggest auto parts manufacturers, is raising sales predictions by as much as eight per cent in 2012 as it looks to new markets for growth.

For full year 2012, Aurora, Ont.-based Magna – which reports in U.S. dollars – expects total sales to be between $27.8 billion and $29.3 billion, according to a company statement. The outlook is above a forecast range of $25.6 billion to $27.1 billion made previously for fiscal 2011.

Magna said it expects 2012 production sales to range between $23.6 billion and $24.7 billion.

The company also said it expects 2012 operating margins to be about five per cent. Magna had earlier lowered its 2011 operating margin outlook to about 4.75 per cent.

In North America, the company expects production sales to rise to $13.2 billion-$13.7 billion, compared with $12.7 billion-$13.2 billion last year.

In Europe, it expects sales to rise to between $8.4 billion and $8.7 billion, compared with $7.8 billion to $8.1 billion last year, and between $2.0 billion and $2.3 billion in the rest of the world.

The company sees total production sales over a two-year period from 2012 to 2014 to be about $3.2 billion, the statement said.

“We are taking advantage of the growth opportunities in new markets and positioning Magna to further serve our customers on global platforms,” said Magna CEO Don Walker. “The combination of our strong position in North America, action plans that are improving results in Europe, and our considerable growth in other regions leaves us confident about Magna’s future.”