August 8, 2014 / 9:21 AM / 3 years ago

Magna profit beats due to strong North America, Europe demand

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

(Reuters) - Canadian auto parts maker Magna International Inc (MG.TO) 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.

Up to Thursday’s close of C$115.19, the company’s stock has risen about 32 percent this year on the Toronto Stock Exchange.

Reporting by Solarina Ho and Sneha Banerjee in Bangalore; Editing by Gopakumar Warrier and Savio D'Souza

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