Manufacturing News from the Engineered Designer Perspective

Magna International posts strong sales gains in third quarter

magna-international-aurora-earnings-profits-share-prices-third-quarter-auto-parts-ediweekly

Aurora, Ontario-based auto parts manufacturer Magna International, the largest North American parts maker and the third largest in the world, posted higher-than-expected profits for its third quarter, ending September 30. Strong sales in Asia and Europe helped the company’s sales rise 16 per cent compared to one year ago, totalling $8.8 billion for the quarter. The strong year-over-year growth was achieved despite limited growth in North America, where the bulk of its sales occur. Asian sales were up 58 per cent, while European sales rose 29 per cent. Net income for the quarter rose to US$514 million ($1.29 per share) compared to $469 million ($1.13 per share) a year earlier. Thomson Reuters reported that analysts had expected a share price of $1.20.

magna-international-earnings-profits-share-prices-third-quarter-auto-parts-ediweekly

Magna also sells complete vehicle assemblies. These sales declined 4 per cent in the third quarter, and volumes decreased by 19 per cent, Magna reported. The decreases were largely because of the end of production of two vehicles, the MINI Countryman and Paceman.

Sales for the first three quarters, to September 30, were $27.2 billion, an increase of 15 per cent over the same period last year. At the same time, North American and European light vehicle production increased only 4 per cent and 5 per cent, to 17.8 million and 21.5 million units  respectively. Net income for the nine months was $2.1 billion.

The company reported that in the first nine months of 2016  it invested $3.3 billion in purchasing subsidiaries, fixed asset additions, and other assets.

As for sales in the coming year, Magna CEO Don Walker said expectations were “muted” as vehicle production growth is expected to slow in its major markets. Growth will be “flat or up” in the most important markets, and will continue to grow in China.

More Great Stories
Fiat Chrysler denies wrongdoing as EPA accuses it of emissions cheating
First Volkswagen, now Fiat Chrysler. A day after Volkswagen pleaded guilty to criminal charges r [more]
Honda to spend $492 million on Alliston plant upgrades
Honda Canada will spend $492 million to upgrade its Alliston, Ontario assembly plant, it was ann [more]
Manufacturing up in December amid uncertainty about future US-Canada relations
Business conditions in Canada’s manufacturing sector showed “modest” improvement in Decemb [more]
Renewable energy now costs less than fossil fuels in some countries: report
The price of renewable energy has fallen to unprecedented lows, according to a report from the W [more]
Ford GT supercar in production at Markham’s Multimatic plant
Auto writers are falling over themselves to praise the new Ford GT supercar, which is now in lim [more]
Bombardier upbeat about growth prospects now that CSeries jets are flying
Bombardier's chief executive has presented a decidedly upbeat assessment of the plane maker’s [more]

Other Popular News and Stories

  • Russian leasing company orders 42 CSeries jets from Bombardier
  • Economy managed slight growth in Q4, but shrank in December
  • Miners struggling with higher costs, lower prices
  • Bombardier holds update on CSeries aircraft
  • Skilled labour shortage in world oil industry: report
  • Japex to buy into west coast LNG development
  • Clean energy expected to surge as pv costs drop
  • SPPCA's new landing gear facility opening in Mississauga
  • Canadian oil production up; producers turning to railways for shipment
  • FTG Aerospace to supply avionics to Rockwell Collins
  • GM investing $250 million at Ingersoll plant
  • Bombardier nearly ready to flight test CSeries
  • Canadian business, except energy, had profitable Q4: Statistics Canada
  • Manufacturing the sole industry showing job losses in February
  • Pratt & Whitney Canada announces helicopter engine contracts
  • Volkswagen to produce super-efficient hybrid
  • DART Aerospace re-branding itself to reach wider markets
  • Canada keeping up pressure on US for Keystone XL approval
  • RV industry has growing role in Canada's economy: study
  • BC refinery close to financing deal