Magna International Inc.
) reported earnings per share of $1.78 in the second quarter of
2013, up 20.3% from $1.48 in the year-ago quarter. It outpaced
the Zacks Consensus Estimate of $1.60. Net income increased 18.9%
to $415 million from $349 million in the year-ago quarter.
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Revenues went up 16% to $9 billion in the reported quarter,
beating the Zacks Consensus Estimate of $8.4 billion. The
increase was driven by improvement in North American, European
and Rest of World (ROW) production sales and higher tooling,
engineering and Complete Vehicle Assembly sales.
Vehicle production rose 7% to 4.3 million units in North America.
However, production declined 1% to 5 million units in Europe.
Operating income increased 15.5% to $543 million in the quarter
from $470 million in the year-ago quarter.
Revenues from External Production Sales (comprising North
America, Europe and ROW units) went up 13.1% to $7.4 billion in
the reported quarter. Revenues from North America increased 10%
to $4.3 billion, driven by the launch of new programs and
completion of acquisitions.
Revenues from Europe went up 14% to $2.6 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 in certain existing programs.
Revenues from ROW augmented 38% to $572 million driven by the
launch of new programs and higher production volumes of certain
Revenues from the Complete Vehicle Assembly segment went up 23%
to $796 million in the quarter, with a 17% rise in assembly
volumes to 38,605 units. Revenues from Tooling, Engineering &
Other expanded 43% to $733 million in the quarter.
Magna International had $1.3 billion in cash and cash equivalents
as of Jun 30, 2013, compared with $1.5 billion as of Dec 31,
2012. The company had long-term debt of $310 million as of Jun
30, 2013, compared with $361 million as of Dec 31, 2012.
Long-term debt to capitalization ratio was 3.2% as of Jun 30,
2013, versus 3.7% as of Dec 31, 2012.
In the first half of 2013, the company's cash flow from
operations increased to $853 million compared with $693 million a
year ago. Capital expenditures declined 17.6% to $426 million in
the period compared with $517 million in the first half of 2012.
For full-year 2013, Magna expects revenues between $27.7 billion
and $28.7 billion in the External Production segment. Complete
Vehicle Assembly sales are projected in the range of $2.8 billion
to $3.1 billion.
Total revenue of the company is expected between $33.3 billion
and $34.7 billion for the year. Operating margin is expected to
be 5.8% with a tax rate of 23.5% 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, apart from engineering and
assembling complete vehicles, primarily for sale to original
equipment manufacturers (OEMs) of cars and light trucks. The
company currently carries a Zacks Rank #2 (Buy).
Some stocks that are performing well in the industry where Magna
American Axle and Manufacturing Inc.
). All of them carry a Zacks Rank #1 (Strong Buy).