Magna experiences record sales in first half of 2005
Automotive supplier Magna International Inc. in Aurora, Ont. achieved record sales of $5.9 billion for the second q...
Automotive supplier Magna International Inc. in Aurora, Ont. achieved record sales of $5.9 billion for the second quarter (Q2) of 2005, which ended June 30, 2005.
This was a 15 per cent increase over the second quarter of 2004. Magna said its Q2 2005 boost in sales is the result of an increase of 19 per cent in North America of average dollar content per vehicle, and a 16 per cent increase in Europe of average dollar content per vehicle compared with Q2 2004.
During Q2 2005, North American vehicle production declined about one per cent, whereas European vehicle production declined three per cent compared Q2 2004.
For the first half of 2005, ending June 30, 2005, Magna also experienced record sales, totalling about $11.6 billion, 13 per cent more than during the first half of 2004. Magna also credits the higher average dollar content per vehicle in North America and Europe with the firm’s increased revenue.
However, in the first half of this year, North American vehicle production declined about three per cent, with European vehicle production declining about four percent, compared with the first six months of 2004.
Weak automotive production, price concessions from original equipment manufacturers (OEMs), higher commodity costs and general economic uncertainly, are expected to impact Magna’s sales for the rest of the year, the company said. And these negative conditions in the automotive industry will rule out the possibility of any new acquisitions, it added.
In 2005, Magna expects the average dollar content per vehicle in North America to range between $710 and $730, and it predicts vehicle production volumes will be about 15.7 units. In Europe, Magna predicts the average dollar content per vehicle will be about $305 to $325, and production volume to be $16.1 million units.
Magna has about 82,000 employees in 22 countries around the world.