2 Min Read
(Reuters) - Canadian auto parts manufacturer Magna International Inc MG.TO MGA.N reported a nearly 13 percent rise in quarterly sales as its European business improved.
Magna, which has been working to turn around inefficient operations in Europe amid the region's soft recovery, also raised the low end of it production sales outlook for 2013.
Total sales in the third quarter ended September 30 rose to $8.34 billion.
In Europe, production sales jumped 18 percent to $2.36 billion. Production sales in North America rose 11 percent to $4.03 billion, while in the rest of the world they increased 16 percent to $574 million.
Sales from vehicle assembly rose 10 percent to $680 million, while tooling, engineering and other sales increased 6 percent to $695 million.
Profit, however, dropped 18 percent, hurt by restructuring charges of $33 million, or 14 cents per share, out of around $94 million the company expected to take in the second half of the year.
Net income fell to $319 million, or $1.39 per share, from $390 million, or $1.66 per share, a year earlier.
Analysts on average had expected a profit of $1.34 per share, on revenue of $8.23 billion, according to Thomson Reuters I/B/E/S.
The company raised the low end of its full-year production sales outlook to $28.1 billion from $27.7 billion. The top end of the forecast range remained unchanged at $28.7 billion.
Magna shares, which have risen nearly 80 percent this year in Toronto and almost 70 percent in the United States, closed at C$88.98 on the Toronto Stock Exchange and $84.97 in New York on Tuesday.
Reporting by Sayantani Ghosh in Bangalore; Editing by Kirti Pandey, Maju Samuel