By RTT News, March 01, 2013, 07:08:00 AM EDT
(RTTNews.com) - Canadian automotive supplier Magna International Inc. (MGA, MG.TO) reported Friday a higher profit for its fourth quarter benefited by increased vehicle production sales. Looking ahead for fiscal 2013, the company projects higher sales, while noting that it remains cautious about weakness in Europe.
In its recently concluded fourth quarter, net income attributable to Magna increased to $351 million or $1.49 per share from $312 million or $1.32 per share in the same period last year.
Excluding certain items, net income attributable to Magna and earnings per share increased $37 million and $0.16, respectively, from last year.
On average, 16 analysts polled by Thomson Reuters expected the company to earn $1.14 per share for the quarter. Analysts' estimates typically exclude special items.
For the fourth quarter, adjusted EBIT increased 21 percent year-over-year to $387 million.
Revenues totaled $8.03 billion, 11 percent higher than last year's $7.25 billion, while analysts were looking for revenues of $7.74 billion.
In the quarter, vehicle production increased 12 percent in North America, but declined 8 percent in Western Europe.
North American, Europe, and Rest of World production sales, as well as tooling, engineering and other sales and complete vehicle assembly sales all increased relative to last year, the company noted.
Complete vehicle assembly sales increased 12 percent to $697 million, while complete vehicle assembly volumes increased 5 percent to approximately 31,500 units.
For fiscal 2012, attributable profit climbed to $1.43 billion or $6.09 per share from $1.02 billion or $4.20 per share a year earlier. Annual revenues grew 7 percent to $30.84 billion.
Magna's Chief Executive Officer Don Walker said, "Overall, we are satisfied with our operating results for 2012. We continued our strong performance in North America. In Europe, we saw better operating results and a return to profitability. In the rest of the world, Asia remains profitable, despite the significant new facility activity, and we are taking steps to improve results in South America."
Magna further noted that its Board of Directors on Thursday declared a 16 percent increase in quarterly dividend to $0.32 per share for the fourth quarter, payable on March 27 to shareholders of record on March 13.
Looking ahead to the fiscal year 2013, the company forecast sales in the range of $32 billion to $33.4 billion. Analysts currently expect full-year revenues of $32.05 billion.
Total production sales would be $27 billion to $28 billion, and complete vehicle assembly sales would be $2.6 billion to $2.9 billion.
Magna added that it expects to record additional restructuring charges of approximately $150 million in the year 2013.
"We expect another year of strong light vehicle production in North America, driven by the ongoing strengthening of North American auto sales. In addition, we expect continued solid operating performance in our North America segment. We remain cautious about the macroeconomic environment in Europe, and expect Western Europe light vehicle production in 2013 to decline relative to 2012, representing the second straight year of decline," the company said in its statement.
On the NYSE, Magna shares closed Thursday's trading at $53.22, up $0.18 or 0.34 percent. In the extended trading, shares increased further by 2.37 percent.
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