Canadian automotive supplier Magna International Inc. (MGA,MG.TO) on Friday reported an 8 percent increase in profit for the first quarter, as higher sales were partly offset by restructuring charges. Sales for the quarter beat analysts' expectations. Looking ahead, the company raised its sales outlook for fiscal 2013.
In the first quarter, vehicle production increased 1 percent in North America to 4.00 million units, but declined 9 percent in Europe to 4.79 million units.
Magna's North American, Europe, and Rest of World production sales, as well as tooling, engineering and other sales and complete vehicle assembly sales all increased relative to last year, the company noted.
Complete vehicle assembly sales increased 33 percent to $798 million, and complete vehicle assembly volumes rose 25 percent to about 37,000 units.
Magna's net income for the first quarter was $369 million or $1.57 per share, up from $343 million or $1.46 per share in the same period last year.
The latest quarter's results include net restructuring charges of $6 million or $0.02 per share in Europe at the company's exterior and interior systems operations. Excluding this, net income for the quarter increased by $32 million, while earnings per share increased by $0.13.
On average, 14 analysts polled by Thomson Reuters expected the company to earn $1.44 per share for the quarter. Analysts' estimates typically exclude special items.
Adjusted EBIT for the quarter increased 5 percent year-over-year to $467 million.
Total sales for the quarter grew 9 percent to $8.36 billion from $7.67 billion in the year-ago period. Analysts had a consensus revenue estimate of $8.09 billion.
Magna's board of directors on Thursday declared a quarterly dividend to $0.32 per share for the first quarter, payable on June 17 to shareholders of record on May 31.
Looking ahead to fiscal year 2013, Magna raised its sales outlook to a range of $32.6 billion to $34.0 billion from the prior range of $32 billion to $33.4 billion. Analysts currently expect full-year revenues of $32.77 billion.
Magna now projects total production sales for the year of $27.2 billion to $28.2 billion, and complete vehicle assembly sales of $2.8 billion to $3.1 billion. Earlier, the company forecast total production sales of $27 billion to $28 billion, and complete vehicle assembly sales in a range of $2.6 billion to $2.9 billion.
Magna currently expects full-year restructuring charges of approximately $100 million.
MGA closed Thursday's trading on the New York stock exchange at $62.71, up $0.11 on a volume of 783,300 shares. In Friday's pre-market, the stock is up $1.35 or 2.15 percent to $64.04.
On the Toronto stock exchange, MG.TO closed Thursday's trading at C$63.21, up C$0.46 or 0.73 percent on a volume of 749,300 shares.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.