August 7, 2009 / 9:59 AM / 9 years ago

UPDATE 2-Magna posts loss on weak auto market

* Loss US$1.83/share; Street view loss US$1.07

* Sales fall 45 pct to US$3.5 bln (Adds details)

TORONTO, Aug 7 (Reuters) - Canadian auto parts company Magna International Inc MGa.TO, one of the bidders vying to buy carmaker Opel from General Motors, reported a quarterly loss Friday, hurt by steep declines in global auto production.

Magna posted a net loss of US$205 million, or US$1.83 per share, compared with a net profit of US$227 million, or US$1.98 per share, in the year-ago quarter.

Sales fell 45 percent to U$3.5 billion.

Analysts on average were expecting a loss of US$1.07 per share, according to Reuters Estimates.

Vehicle production plunged 49 percent in North America and 28 percent in Europe during the quarter compared with a year earlier, putting a big dent in Magna’s sales.

The German government, which is putting up loan guarantees for the purchase of European carmaker Opel, is pushing GM [GM.UL] to accept Magna’s bid, but GM said on Thursday it still had problems with Magna’s offer. [ID:nL6275568]

Shares in Magna, which is based in Aurora, Ontario, closed at C$51.38 Thursday on the Toronto Stock Exchange.

Magna said its North American and European average dollar content per vehicle fell 10 percent and 7 percent, respectively, in the second quarter compared with a year earlier.

Complete vehicle assembly sales decreased 60 percent to $423 million, while complete vehicle assembly volumes declined 65 percent to about 14,100 units, Magna said.

Its operating loss in the quarter was $237 million, compared with an operating profit of $319 million a year earlier. (Reporting by Andrea Hopkins in Toronto and Ajay Kamalakaran in Bangalore, editing by Will Waterman and John Wallace) ($1=1.077 Canadian dollar)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below