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.

Did you miss this?

Other Popular Stories

  • Offshore wind costs will fall significantly if development continues: study
  • NASA Discovers Eighth Planet Circling Distant Star
  • Manufacturing sales up in September but shadow of Trump looms over Canada
  • MRO in space: Inside a routine Maintenance-Repair-and-Overhaul mission with NASA: sealing, lubricating and keeping cool
  • Gold miners expand production in Nunavut, estimated reserves in BC
  • Greater transparency, accountability called for in new homes warranty plan for Ontario
  • Consumer spending drives strong GDP growth in second quarter
  • Major iron ore mine gets approval in Newfoundland & Labrador
  • Oilsands companies hope to innovate cleaner, more profitable future
  • Jobless rate down, balance of trade up as economy shows strength
  • Ontario increases incentives for EV buyers
  • Avalon Advanced Materials creates jobs to make lithium ion batteries from Kenora-area mine
  • GM restructuring goes forward with agressive job cuts in Ontario designed to save billions of dollars — at the same time they recruit new hires?
  • Researchers claim micro-fluidics breakthrough with liquid metal pump
  • Five companies to provide power storage for Ontario
  • Bombardier, Air Canada Jazz taking part in European MRO event
  • New national aerospace consortium to foster leadership in technology
  • Electric bush plane: combined project of Zenair and Solar Ship combines rugged short landings with green technology
  • Autos and parts drag down manufacturing sales in August
  • SAFFir is an autonomous robot firefighter being tested by the Navy for dangerous situations. Unlike other firefighting robots, SAFFir is both autonomous, and stands on two legs, with two hands to grasp fire hoses.
    Robots save lives: robot fire-fighters take on explosive situations. SAFFiR shows how they can be ultimately be autonomous.
Scroll to Top