Magna profit beats due to strong North America, Europe demand

Fri Aug 8, 2014 11:26am EDT
 
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(Reuters) - Canadian auto parts maker Magna International Inc (MG.TO: Quote) MGA.N reported a higher-than-expected rise in quarterly profit and raised its full-year sales forecast, helped by strong demand in North America and a continued recovery in Europe.

Magna, one of the world's largest auto parts makers, said North American production sales rose 10 percent to $4.75 billion, while they rose 4 percent to $2.66 billion in Europe in the second quarter ended June 30.

The company, which had been turning around operations in a slowly recovering Europe, had previously said it expects most of the work to be done this year, with some spillover into 2015.

Production sales in Asia climbed 23 percent to $402 million.

They fell 33 percent to $163 million in rest of the world, which primarily includes South America, where Magna had been struggling to pass on an inflation-driven rise in costs to customers.

Aurora, Ontario-based Magna raised its full-year sales forecast to $35.6 billion-$37.3 billion from $34.9 billion-$36.6 billion.

Net income attributable to the company rose 23 percent to $510 million, or $2.32 per share, in the second quarter.

Sales rose 5.6 percent to $9.46 billion.

Excluding restructuring charges, the company earned $2.37 per share, higher than the average analyst estimate of $2.26, according to Thomson Reuters I/B/E/S.   Continued...

 
Chief Executive Officer for Magna International Inc. Donald Walker waits for the annual general meeting to start in Toronto May 10, 2012. REUTERS/Fred Thornhill