Magna International Inc.
) reported earnings per share of $1.49 in the fourth quarter of
2012, up 12.9% from $1.32 in the year-ago quarter and outpaced
the Zacks Consensus Estimate of $1.14. Net income increased 12.5%
to $351.0 million from $312.0 million in the year-ago quarter.
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Revenues went up 10.8% to $8.03 billion in the reported quarter,
exceeding the Zacks Consensus Estimate of $7.75 billion. The
increase in revenues was driven by improvement in North American
and Rest of World (ROW) production sales and higher tooling,
engineering and other sales together with improved complete
vehicle assembly sales.
Vehicle production rose 12% to 3.8 million units in North
America. However, production declined 8% to 3.1 million units in
Western Europe. Operating income increased 17.2% to $341.0
million in the quarter from $291.0 million in the year-ago
External Production Sales
(comprising North America, Europe and ROW units) went up 9.9% to
$6.6 billion in the reported quarter. Revenues from North America
increased 12% to $3.9 billion, driven by higher production
volumes of the existing programs and new program launches.
Revenues from Europe crept up 1.9% to $2.2 billion in the period.
The year-over-year improvement was attributable to the launch of
new programs and completion of acquisitions, partially offset by
a decrease in production volume and weakening of the euro.
Revenues from ROW augmented 35% to $521.0 million, due to the
launch of new programs in Brazil and China as well as the
completion of acquisitions.
Revenues from the
Complete Vehicle Assembly
segment went up 11.5% to $697.0 million in the quarter with a
5.3% rise in assembly volumes to 31,450 units. Revenues from
Tooling, Engineering & Other
expanded 19.1% to $728.0 million for the fourth quarter of 2012.
Magna International had $1.5 billion in cash and cash equivalents
as of Dec 31, 2012, compared with $1.3 billion as of Dec 31,
2011. The company had long-term debt of $361.0 million as of Dec
31, 2012 compared with $197.0 million as of Dec 31, 2011.
Long-term debt to capitalization ratio rose to 3.7% as of Dec 31,
2012 from 2.4% as of Dec 31, 2011.
In full year 2012, the company's cash flow from operations was
$2.2 billion compared with $1.2 billion during 2011. Capital
expenditures amounted to $1.27 billion in the period compared
with $1.24 billion in 2011.
Magna reported 2012 earnings per share of $6.09; up 45% from
$4.20 a year ago. Profits improved 40.8% to $1.4 billion from
$1.0 billion a year ago.
Revenues increased 7.3% to $30.8 billion from $28.7 billion in
2011. The year-over-year improvement in sales was driven by
higher production sales in North America, Europe, and ROW
together with higher tooling, engineering and other sales.
Vehicle production increased 18% to 15.5 million units in North
America but dropped 7% to 12.7 million units in Western Europe
The board of directors of the company declared a 16% hike in the
quarterly dividend to 32 cents per share. The dividend is payable
on Mar 27, 2013 to shareholders of record as of Mar 13, 2013.
This improvement in dividend reflects strong performance of the
For full year 2013, Magna expects revenues in the External
Production segment between $27 billion and $28 billion. Complete
Vehicle Assembly sales are projected in the range of $2.6 billion
to $2.9 billion.
Total revenue of the company is expected between $32 billion and
$33.4 billion for the year. Operating margin is expected to be in
the mid-5% range with a tax rate of 24.5% for the year. Capital
expenditures for the year are expected to be $1.4 billion.
Magna International, based in Aurora, Canada, is a leading
manufacturer and supplier of automotive components. The company
designs, develops and manufactures automotive systems,
assemblies, modules and components, besides engineering and
assembling complete vehicles, primarily for sale to original
equipment manufacturers (OEMs) of cars and light trucks. The
company currently retains a Zacks Rank #2 (Buy).
Few stocks that are performing well in the industry where Magna
). Oshkosh and Strattec Security are Zacks Rank #1 (Strong Buy)
stocks while Gentherm carries a Zacks Rank #2 (Buy).