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Magna Q2 Adj. EPS Beats View; Backs FY19 Profit Forecast, Cuts Sales View

Automotive supplier Magna International Inc. (MG.TO,MGA) reported Thursday that its second-quarter net income attributable to the company was $452 million, down from $626 million last year.

Earnings per share decreased to $1.42 from $1.77 in the comparable period. Adjusted earnings per share were $1.59, compared to $1.67 for the second quarter of 2018.

Analysts had expected the company to earn $1.54 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Sales decreased 1 percent to $10.13 billion from last year's $10.28 billion. Analysts expected sales of $9.95 billion for the quarter.

Excluding foreign currency translation and divestitures net of acquisitions, sales went up 5 percent. The results were driven by Body Exteriors & Structures, Power & Vision and Complete Vehicles segments.

Global light vehicle production was down 6 percent.

Looking ahead for fiscal 2019, the company continues to expect attributable net income of $1.9 billion to $2.1 billion.

Meanwhile, adjusted EBIT Margin is now expected to be 6.6 percent to 6.9 percent, compared to previous outlook of 6.7 percent to 7.0 percent.

The company currently projects total sales of $38.9 billion to $41.1 billion, down from previous view of $39.1 billion to $41.3 billion. For the year, the market estimates sales of $40.24 billion.

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