News

Magna reports stronger-than-anticipated earnings in Q1 2012

Canadian auto parts maker Magna International Inc. reported first quarter 2012 earnings and sales that exceeded year-earlier results, and the expectations of analysts, on stronger North American vehicle production.


Print this page

May 12, 2012 by Canadian Plastics

Canadian auto parts maker Magna International Inc. reported first quarter 2012 earnings and sales that exceeded year-earlier results, and the expectations of analysts, on stronger North American vehicle production.

North American light-vehicle production rose 17 percent in the first quarter to 3.97 million units, according to researcher IHS Automotive. That helped boost Aurora, Ont.-based Magna sales by 6.6 per cent to $7.67 billion. The average estimate of nine analysts was for sales of $7.49 billion, according to data compiled by news agency Bloomberg.

According to Magna, sales climbed to $7.67 billion from $7.19 billion, as North American, European and global production sales increased. Analysts expected revenues of $7.50 billion.

Sales in North America rose 10 per cent to $3.92 billion and vehicle production volumes climbed 17 per cent. Sales were up six percent in Europe at $2.32 billion while vehicle production volumes dropped 7 per cent in Western Europe.

Complete vehicle assembly sales decreased 11 per cent to $599 million, Magna also said, while complete vehicle assembly volumes decreased 10 per cent to around 30,000 units.

Magna raised its annual sales forecast to as much as $30.5 billion, from a February 24 projection of as much as $29.5 billion. The company also said it expects the industry to make 14.4 million vehicles in North America. In February, Magna projected output of 13.8 million vehicles.