Canadian auto parts maker Magna's profit beats estimates

Thu May 11, 2017 8:44am EDT
 
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(Reuters) - Canadian auto parts maker Magna International Inc (MG.TO: Quote) MGA.N on Thursday posted a bigger-than-expected profit for the first quarter, helped by higher demand, and the company also raised its full-year sales forecast.

Magna said sales in Asia rose 10 percent to $557 million in the quarter ended March 31, while sales in Europe climbed 8 percent to $2.46 billion.

North America sales, which make up the bulk of Magna's total sales, increased 7 percent to $5.09 billion.

The helped total sales jump to $9.37 billion from $8.90 billion at Magna, which counts General Motors Co (GM.N: Quote), Volkswagen AG (VOWG_p.DE: Quote), BMW (BMWG.DE: Quote) and Ford Motor Co (F.N: Quote) among its biggest customers.

Net income attributable to Magna rose to $586 million, or $1.53 per share, in the quarter, from $492 million, or $1.22 per share, a year earlier.

The company earned $1.54 per share on an adjusted basis, topping analysts' average estimate of $1.34, according to Thomson Reuters I/B/E/S.

Magna raised its full-year 2017 sales forecast to $36.6 billion to $38.3 billion, from its prior forecast of $36 billion to $37.7 billion.

The Aurora, Ontario-based company also raised its total production sales forecast to $30.8 billion to 32.1 billion, from $30.4 billion to $31.7 billion.

The company's U.S.-listed shares were up about 1.8 percent at $43.55 in premarket trading on Thursday.

(Reporting by John Benny in Bengaluru; Editing by Savio D'Souza)