Profits drop at Magna (November 10, 2003)

Magna International Inc.’s third-quarter net earnings fell to $48 million, from $132 million (all figures in US dollars) a year earlier. The company said the decline in earnings was a result of lower North American vehicle production, as well as a one-time charge of $74 million from spinning off a subsidiary in September.
Magna reported that North American vehicle production fell about 5% during the quarter, while European output rose 2%. Despite the decline in earnings, third-quarter sales rose to $3.55 billion from $2.96 billion, due to an increase in the company’s content per vehicle. Magna’s content per vehicle in North America now stands at 22%. The company expects its average dollar content per vehicle for 2004 to range between $515 and $520 in North America.