Magna International Inc.
) adjusted earnings per share of $2.33 in the fourth quarter of
2013 improved 39.5% from $1.67 in the year-ago quarter. Earnings
per share outpaced the Zacks Consensus Estimate of $1.53.
On a reported basis, the company reported profit of $458 million
or $2.03 per share compared with $351 million or $1.49 in the
fourth quarter of 2012.
Revenues went up 14.2% to $9.2 billion in the reported quarter,
beating the Zacks Consensus Estimate of $8.9 billion. The upside
was driven by increased production sales in North America,
Europe, and Asia, together with higher tooling, engineering and
other sales and improved complete vehicle assembly sales. This
was partially offset by decline in Rest of World production
Vehicle production rose 6% to 4.04 million units in North America
and 5% to 4.9 million units in Europe. Operating income increased
50.7% to $514 million in the quarter from $341 million in the
Fiscal 2013 Performance
Magna's adjusted earnings increased 26% to $7.23 per share for
full-year 2013 from $5.74 in 2012, exceeding the Zacks Consensus
Estimate of $6.42. Revenues for full-year 2013 rose 13% to $34.8
billion from $30.8 billion in 2012. Revenues surpassed the Zacks
Consensus Estimate of $34.5 billion.
Revenues from External Production (comprising North America,
Europe, Asia and ROW units) went up 14.2% to $7.5 billion in the
Revenues from North America increased 13% to $4.4 billion, driven
by product launches, positive impact of acquisitions and
Revenues from Europe went up 17% to $2.6 billion in the period.
The year-over-year improvement was attributable to favorable
currency translations, benefits of acquisitions, launch of new
programs and higher production volume.
Revenues from Asia surged 29% to $399 million in the reported
quarter. The improvement was attributable to higher production
volume, synergies from new launches and favorable currency
Revenues from ROW decreased 11% to $188 million due to
unfavorable currency translations, partly offset by increased
price and production volume.
Revenues from the Complete Vehicle Assembly segment went up 13%
to $788 million in the quarter, with a 17% rise in assembly
volumes to 36,704 units.
Revenues from Tooling, Engineering & Other expanded 16% to
$841 million in the quarter.
Magna International had $1.6 billion in cash and cash equivalents
as of Dec 31, 2013, compared with $1.5 billion as of Dec 31,
2012. The company had long-term debt of $332 million as of Dec
31, 2013, as against $361 million as of Dec 31, 2012.
In 2013, the company's cash flow from operations increased to
$2.57 billion from $2.21 billion a year ago. Capital expenditures
declined to $1.17 billion in the period from $1.27 million in
The board of directors declared a 19% increase in the quarterly
dividend to 38 cents per share. The dividend is payable on Mar
28, 2014 to shareholders of record as of Mar 14, 2014.
For full-year 2014, Magna expects revenues between $28.4 billion
and $29.7 billion in the External Production segment. Complete
Vehicle Assembly sales are projected in the range of $2.8-$3.1
For 2014, total revenue of the company is expected between $33.8
billion and $35.5 billion. Operating margin is projected to be
around 6.5% with a tax rate of 24.5%. Capital expenditures are
anticipated to be around $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 of cars and light trucks. The company
currently carries a Zacks Rank #2 (Buy).
Other better-performing stocks in the industry include
STRATTEC Security Corp.
Allison Transmission Holdings, Inc.
). While STRATTEC Security and Allison Transmission sport a Zacks
Rank #1 (Strong Buy), Gentex carries a Zacks Rank #2.
ALLISON TRANSMN (ALSN): Free Stock Analysis
GENTEX CORP (GNTX): Free Stock Analysis
MAGNA INTL CL A (MGA): Free Stock Analysis
STRATTEC SEC CP (STRT): Free Stock Analysis
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