Auto parts maker Magna raises 2016 sales forecast, profit beats
(Reuters) - Canadian auto parts maker Magna International Inc MG.TO MGA.N reported a higher-than-expected first-quarter profit and raised its full-year sales forecast for a second time, boosted by strong vehicle sales in North America and Europe.
Shares rose 2.7 percent at C$52.59 in morning trading on the Toronto Stock Exchange.
Auto sales have been strong so far this year, particularly in the United States, helped in part by low gasoline prices.
Magna, which bought German transmission parts maker Getrag to help automakers improve fuel efficiency, has a customer list that includes General Motors Co (GM.N: Quote), Volkswagen AG (VOWG_p.DE: Quote), BMW (BMWG.DE: Quote) and Ford Motor Co (F.N: Quote).
Net income from continuing operations attributable to Magna rose 8 percent to $492 million, or $1.22 per share, in the quarter ended March 31, beating analysts' average estimate of $1.19 per share, according to Thomson Reuters I/B/E/S.
Magna, which also assembles vehicles under contract, said sales rose about 14.5 percent to $8.90 billion. Excluding the impact of the U.S. dollar, sales rose 19 percent.
The Aurora, Ontario-based company forecast 2016 sales of $35.5 billion-$37.2 billion, higher than its forecast of $34.6 billion-$36.3 billion in January.
(Reporting by Amrutha Gayathri in Bengaluru; Editing by Savio D'Souza and Shounak Dasgupta)
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