Magna Exteriors and Interiors (MEI), an operating unit of
Magna International Inc.
), has collaborated with strategic development partner Zoltek to
provide composite parts and systems of carbon fiber for
high-volume automotive applications. The collaboration will
support the automakers to manufacture lighter and more
Zoltek is one of the leading producers of commercial carbon fiber
based in St. Louis, MO. Both Magna and Zoltek are jointly
producing EpicBlendSMC EB CFS-Z, which is a low-cost carbon fiber
sheet molding compound (SMC), under the collaboration. SMC
utilizes Zoltek's Panex 35 commercial carbon fiber together with
MEI's unique EpicBlendSMC formulations and production expertise.
The EB CFS-Z product is part of EpicBlendSMC product line. With
this product, Magna offers manufacturer with an expanded range of
lightweight parts, sub-systems and semi-structural applications
for automotive, commercial truck and other markets. The EB CFS-Z
sheet molding compound is also directly sold by MEI.
Both companies possess extensive core manufacturing capabilities,
which will likely benefit customers in North America and Europe
along with minimizing the cost and reducing the import quantity
of carbon fiber in these markets.
Magna, 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.
Magna also focus on development of lightweight solutions which
will increase the fuel efficiency and reduce the emission. The
company currently retains a Zacks Rank #2 (Buy).
MAGNA INTL CL A (MGA): Free Stock Analysis
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Magna 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.
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.
Few stocks that are performing well in the industry where Magna
STRATTEC Security Corporation
). Gentherm and Strattec Security are Zacks Rank #1 (Strong Buy)
stocks while Oshkosh carries a Zacks Rank #2 (Buy).