August 7, 2015 / 10:02 AM / 3 years ago

CORRECTED-UPDATE 1-Magna Int'l quarterly sales beat estimates

(Corrects 2015 revised sales forecast to $30.9-$32.6 billion from $26.2-$27.5 billion in paragraph 8)

Aug 7 (Reuters) - Canadian auto parts maker Magna International Inc reported higher-than-expected quarterly sales as increased vehicle production in North America offset the impact of a strong U.S. dollar.

Auto sales in the United States and Canada were robust in the April-June period as cheaper gasoline and low interest rates drove the shift toward sport utility vehicles and pickup trucks.

However, the dollar surged about 20 percent against a basket of major currencies in the past 12 months, making sales denominated in other currencies less valuable in dollar terms.

On an adjusted basis, Magna earned $1.19 per share for the second quarter, above analysts’ average estimate of $1.18, according to Thomson Reuters I/B/E/S.

Magna’s quarterly sales fell 8.7 percent to $8.13 billion. Analysts on average had expected revenue of $8.09 billion.

The company said it expected 2015 operating margin to be about 8 percent, higher than the high-7 percent range it forecast in May.

Magna sold much of its vehicle interiors business, typically a lower-margin segment, to Spain’s Grupo Antolin in April.

The company said it now expects 2015 sales of $30.9-$32.6 billion, compared with its previous forecast of $30.8-$32.5 billion.

Magna had said in July it would buy privately owned German car parts maker Getrag for 1.75 billion euros ($1.91 billion), to expand its automotive transmission systems business.

Net earnings per share attributable to Magna was $1.16, same as a year earlier. The company said it restated its earnings per share for the year-ago period due to a 2-for-1 stock split that was completed in March.

Up to Thursday’s close of C$71.37, Magna shares gained about 22 percent in the past 12 months on the Toronto Stock Exchange.

$1 = 0.9152 euros Reporting by Amrutha Gayathri in Bengaluru; Editing by Gopakumar Warrier

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