Magna reports strong 2011

Magna International Inc., North America’s largest auto parts supplier, said fourth-quarter profit in 2011 jumped 42 per cent as car and light-truck production increased in the region.

Net income rose to $312 million from $219 million a year earlier, the Aurora, Ont.-based company said in a statement. Sales gained 13 per cent to $7.25 billion, boosting revenue for all of 2011 to $28.7 billion.

Additionally, Magna forecast sales of between $28 billion and $29.5 billion this year.

Compared to 2010, North American vehicle production increased 10 per cent to 13.1 million vehicles in 2011, Magna said, including a fourth-quarter rise of 15 per cent to 3.44 million.

The good news in North America was tempered by fall-off in Europe, however. Despite a vehicle production increase of three per cent to 13.7 million units in 2011, Magna’s European unit posted a loss of $3 million, compared with profit of $20 million a year earlier.

“Overall, we are pleased with our strong results for 2011,” said Don Walker, Magna’s CEO. “Improving our operating results in Europe remains a key focus point for us in 2012.”