Magna profit beats due to strong North America, Europe demand
(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...