Magna’s Sales, Net Earnings Rise

November 08, 2018 at 12:04 PM

Magna International Inc.’s third-quarter sales revenue rose 9% to US$9.6 billion. Net income grew 8% to $554 million, mainly because of lower tax rates.

Magna’s pretax income for the period dipped 1% to $674 million. The company notes that its body exteriors and structures business was hurt by costly launch costs and underperforming facilities.

The Canadian supplier also trimmed its vehicle production forecasts and revised its full-year outlook toward the lower end of its previous guidance.

The company now expects vehicle production will total 17 million units in North America and 22.5 million in Europe, down by 200,000 and 100,000 units, respectively. Total sales are forecast to be about US$41 billion, with adjusted net income between $2.3 billion and $2.4 billion.