Magna International Inc.
) projected higher sales and production volume for 2013 based on
its expansion in the high-growth markets and strong position in
North America and Europe. The company expects the restructuring
actions in Europe will lead to further improvement in its
European financial results.
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MAGNA INTL CL A (MGA): Free Stock Analysis
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Revenues are expected between $31.3 billion and $32.7 billion for
2013 with light vehicle production of 15.3 million units in North
America and 12.0 million units in Western Europe.
External Production Sales
(comprising North America, Europe and Rest of the World) are
expected between $26.5 billion and $27.5 billion in 2013.
Revenues are expected between $15.3 billion and $15.7 billion in
North America, $9.0 billion and $9.3 billion in Europe and $2.2
billion and $2.5 billion in ROW. Revenues from the
Complete Vehicle Assembly
segment are anticipated between $2.5 billion and $2.8 billion.
The company expects operating margin to be 5% for 2013 with tax
rate of 24.5%. The company also projected capital spending of
$1.4 billion for the year.
Moreover, Magna expects total production sales to increase by
$2.2 billion from 2013 to 2015 based on a light vehicle
production of 16.7 million units in North America and 12.8
million units in Western Europe. The increase in production sales
will be attributable to 70% improvement in North America and 40%
rise in Rest of World, which will be partially offset by a 10%
decline in Europe.
Magna reported adjusted earnings per share of $1.13 in the third
quarter of 2012, up 20.2% from 94 cents in the year-ago quarter.
The results topped the Zacks Consensus Estimate by 10 cents. The
year-over-year growth in earnings was aided by a decline in share
count stemming from repurchase and cancellation of common stocks
during the quarter.
Revenues climbed 6.3% year over year to $7.4 billion, exceeding
the Zacks Consensus Estimate of $7 billion. The increase was
driven by improvement in North American and Rest of World (ROW)
production sales and higher tooling, engineering and other sales,
partly offset by decline in sales from European business and
Complete Vehicle Assembly.
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.
Magna's primary competitors include
Dana Holding Corporation
). Currently, the company retains a Zacks Rank #3 (Hold).