Magna profit up on strong North America sales, raises outlook

Fri May 10, 2013 9:23am EDT
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By Solarina Ho

TORONTO (Reuters) - Auto parts maker Magna International Inc (MG.TO: Quote) (MGA.N: Quote) posted a higher-than-expected rise in first-quarter profit on Friday as its revenues climbed 9 percent, boosted by strong sales in North America.

Shares of the Canadian company rose in pre-market trading as it also raised its 2013 outlook.

Net earnings climbed to $369 million, or $1.57 per share, in the quarter ended March 31 from $343 million, or $1.46 per share, a year earlier.

Sales rose 9 percent to $8.36 billion.

Analysts had expected a profit of $1.43 a share on revenue of $8.09 billion, according to Thomson Reuters I/B/E/S.

Magna shares climbed to $64.04 in pre-market trade, up from their close at $62.71 in New York on Thursday.

Magna, which makes parts ranging from mirrors and auto bodies to electronics and powertrain systems, said total sales for 2013 were expected to come in between $32.6 billion and $34 billion, above its previous forecast of C$32 billion to C$33.4 billion.

It expected total production sales for the year to fall between $27.2 billion and $28.2 billion, up from its previous forecast range of $27 billion and $28 billion.

Production sales are sales from Magna's core business of manufacturing vehicle parts and exclude its smaller vehicle-assembly and tooling operations.

(With additional reporting by Ankur Banerjee; Editing by Jeffrey Hodgson and Nick Zieminski)