Magna reports stronger-than-anticipated earnings in Q1 2012

Canadian auto parts maker Magna International Inc. reported first quarter 2012 earnings and sales that exceeded year-earlier results, and the expectations of analysts, on stronger North American vehicle production.

North American light-vehicle production rose 17 percent in the first quarter to 3.97 million units, according to researcher IHS Automotive. That helped boost Aurora, Ont.-based Magna sales by 6.6 per cent to $7.67 billion. The average estimate of nine analysts was for sales of $7.49 billion, according to data compiled by news agency Bloomberg.

According to Magna, sales climbed to $7.67 billion from $7.19 billion, as North American, European and global production sales increased. Analysts expected revenues of $7.50 billion.

Sales in North America rose 10 per cent to $3.92 billion and vehicle production volumes climbed 17 per cent. Sales were up six percent in Europe at $2.32 billion while vehicle production volumes dropped 7 per cent in Western Europe.

Complete vehicle assembly sales decreased 11 per cent to $599 million, Magna also said, while complete vehicle assembly volumes decreased 10 per cent to around 30,000 units.

Magna raised its annual sales forecast to as much as $30.5 billion, from a February 24 projection of as much as $29.5 billion. The company also said it expects the industry to make 14.4 million vehicles in North America. In February, Magna projected output of 13.8 million vehicles.