January 15, 2019 / 10:41 AM / 3 months ago

Magna International says 2019 revenue to be hurt by unit sale, strong dollar

FILE PHOTO: Magna CEO Don Walker speaks during the company's Annual Shareholder Meeting in Toronto, May 8, 2014. REUTERS/Aaron Harris

(Reuters) - Canadian auto parts maker Magna International Inc (MG.TO) said on Tuesday its 2019 revenue will be impacted by the sale of its fluid pressure and controls business and stronger dollar.

The company expects total revenue of $40.2 billion to $42.4 billion and net income of $2.1 billion to $2.3 billion in 2019.

Analysts expect the company to report revenue of $41.3 billion and profit of $2.34 billion for the full year, according to IBES data from Refinitiv.

Magna agreed to sell the fluid pressure and controls business, which includes electronic pumps and cooling fans, to South Korea-based Hanon Systems for $1.23 billion in September last year.

The company also said its North American business will be hurt by General Motors Co’s (GM.N) decision to close its Oshawa plant in Ontario. In November, GM announced the closure of three assembly plants as part of a wider restructuring.

Magna also forecast a slight decline in its earnings before interest and taxes due to higher commodity costs.

Reporting by Laharee Chatterjee in Bengaluru; Editing by Arun Koyyur

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