Magna plans US$1.4 billion in capital spending

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.”