The Canadian automotive parts maker – which has manufacturing operations in all three NAFTA countries, China and throughout Europe – reduced its estimate for total sales in 2018 by 1.4 per cent from its previous outlook.
August 8, 2018 by Canadian Plastics
Automotive parts supplier Magna International Inc. has lowered its expectations for the second half of 2018 amid uncertainty surrounding tariffs and trade negotiations between the U.S. and other countries, including Canada and China.
As reported by the Canadian Press news agency, the Aurora, Ont.-based firm has edged down its full-year estimates for sales, margins and other key metrics but Magna chief executive Don Walker told analysts on Aug. 7 that it’s difficult to know what will happen longer-term.
“As far as what’s going on with all of the tariff activity, it’s certainly in flux. Internally, it’s extremely complicated to just get our arms around everything,” Walker said in a quarterly conference call reported by Canadian Press.
Magna now estimates that its total sales will be in a range of $40.3 billion to $42.5 billion, down about 1.4 per cent from the previous outlook range.
“As far as what happens with tariffs long-term, it’s anybody’s best guess,” Walker said. “I would hope that eventually we will get to the point where we have got an agreement on NAFTA – in which case I think everything between Canada, the U.S. and Mexico gets resolved.”
Magna – which has manufacturing operations in all three NAFTA countries, China and throughout Europe – recorded $626 million in net income in Q2 2018, with overall revenue up $1.14 billion from the same time last year to $10.28 billion, which is a record second quarter for Magna.