Magna announces record first quarter results

Buoyed by strong sales in its complete vehicles segment, automotive parts supplier Magna International Inc. reported record quarterly sales in Q1 2018, up 21 per cent year-over-year to $10.79 billion.

“Our sales of $10.79 billion for the first quarter of 2018…is strong growth that was achieved despite light vehicle production that declined two per cent in North America and was essentially unchanged in Europe, both compared to the first quarter of 2017,” Aurora, Ont.-based Magna said in a statement. “We delivered sales growth in each of our operating segments, most notably in our complete vehicles segment, which contributed approximately 60 per cent of the increase in sales in the first quarter of 2018.”

In the first quarter of 2018, Magna generated cash from operations before changes in operating assets and liabilities of $1.03 billion, and invested $455 million in operating assets and liabilities. “Investment activities for the first quarter of 2018 were $357 million, including $243 million in fixed asset additions and a $114 million increase in investments, other assets and intangible assets,” Magna said.

“We had a strong start to the year, reporting record first quarter results and increasing our outlook for sales and earnings,” Magna CEO Don Walker said. “We continue to position Magna for the emerging mobility ecosystem as demonstrated by the recently announced partnership with Lyft.” In March, Magna announced that it would $200 million in Lyft Inc. and work with the U.S. ride-hailing firm to manufacture self-driving cars.