Magna reports a Q2 loss amid Russia and Ukraine conflict
Canadian PlasticsAutomotive Canadian Plastics
The Ontario-based auto parts supplier reported a $156 million net loss in the second quarter.
Canadian automotive parts maker Magna International Inc. posted a loss in its most recent quarter as it recorded a non-cash impairment charge related to its investment in Russia.
In a July 29 news release, the Aurora, Ont.-based company says it lost US$156 million in the second quarter, compared with earnings of US$424 million in the same quarter of 2021.
Adjusted net income fell to US$243 million compared with US$426 million a year earlier.
In the release, Magna says sales for the three months ended June 30 were US$9.36 billion, a 3.6 per cent increase from US$9.03 billion last year.
The company says higher sales were mainly due to a two per cent increase in global light vehicle production, largely driven by a 14 per cent increase in North America.
The loss for the quarter ended June 30 includes a one-time impairment charge of US$376 million related to Magna’s operations in Russia, which remain substantially idled because of Russia’s invasion of Ukraine. Magna operates six plants in Russia.
“Our second quarter results were largely in line with our expectations, excluding the impairment of our investment in Russia,” said Magna CEO Swamy Kotagiri. “While we anticipate ongoing industry disruption through at least the remainder of 2022, we expect light vehicle production and our earnings to increase in the second half of the year, compared to the first half.”