DAILY NEWS Jan 15, 2014 10:57 AM - 0 comments

Magna plans US$1.4 billion in capital spending

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Automotive supplier Magna International Inc. is estimating total sales between US$33.8 billion and US$35.5 billion this year, about the same as in 2013.


According to a Magna sales projection, the results are in line with company and analyst estimates for last year’s revenue.


Aurora, Ont.-based Magna’s previous outlook, issued in November 2013 with its third-quarter results, estimated 2013 total revenue will be between US$33.9 billion and US$34.8 billion.


Magna said its estimates assume no major acquisitions or divestitures. The company also said it expects production sales revenue in 2016 will be about US$3.6 billion higher than in 2014.


Magna’s 2014 production sales estimate, which excludes sales of assembled vehicles, is between US$28.6 billion and US$29.9 billion.


The Canadian auto parts giant, which operates 316 factories in countries around the world, is also predicting that it will spend about US$1.4 billion on capital projects this year – about the same as 2013.


“Our outlook indicates our continued progress in expanding our business in high growth regions, particularly in Asia,” Magna chief executive Don Walker said in a statement. “Our outlook reflects our commitment to improving operating results in Europe including through ongoing restructuring, implementing operational improvements and exercising discipline in quoting new business.”

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