Magna International Inc. has reported financial results for the fourth quarter and year ended Dec. 31, 2015.

In the third quarter of 2015, Magna sold substantially all of its interiors operations (excluding its seating operations). The assets and liabilities, and operating results for the previously reported interiors operations are presented as discontinued operations and have therefore been excluded from both continuing operations and segment results for all periods reported.

Three Months Ended Dec. 31, 2015

Magna posted sales of $8.6 billion for the fourth quarter ended Dec. 31, 2015, a decrease of 3 percent from the fourth quarter of 2014. The weakening of certain currencies against the U.S. dollar reporting currency, in particular the euro and Canadian dollar, had a significant negative impact on the company’s reported sales for the fourth quarter of 2015. Foreign currency translation reduced sales by approximately $770 million, as compared to the fourth quarter of 2014. Excluding the impact of foreign currency translation, sales increased 6 percent in the fourth quarter of 2015, compared to the fourth quarter of 2014. North American light vehicle production increased 4 percent to 4.5 million units and European light vehicle production increased 7 percent to 5.5 million units in the fourth quarter of 2015, compared to the fourth quarter of 2014.

Excluding the impact of foreign currency translation, the complete vehicle assembly sales decreased 3 percent in the fourth quarter of 2015, compared to the fourth quarter of 2014.  Complete vehicle assembly volumes decreased 24 percent to approximately 25,000 units.

During the fourth quarter of 2015, income from continuing operations before income taxes was $624 million, net income from continuing operations attributable to Magna International Inc. was $483 million and diluted earnings per share from continuing operations were $1.19, decreases of $72 million, $33 million and $0.04 respectively, each compared to the fourth quarter of 2014.

For the fourth quarter of 2015, other expense (income) negatively impacted income from continuing operations before income taxes by $15 million, net income from continuing operations attributable to Magna International Inc. by $15 million, and diluted earnings per share from continuing operations by $0.03, respectively.

During the fourth quarter ended Dec. 31, 2015, the company generated cash from operations of $773 million before changes in operating assets and liabilities and $243 million in operating assets and liabilities. Total investment activities for the fourth quarter of 2015 were $894 million, including $604 million in fixed asset additions, $221 million in acquisitions and $69 million in investments and other assets.

Year Ended Dec. 31, 2015

Magna International posted sales of $32.1 billion for the year ended Dec. 31, 2015, a decrease of 7 percent from the year ended Dec. 31, 2014. The weakening of certain currencies against the U.S. dollar reporting currency, in particular the euro and Canadian dollar, had a significant negative impact on reported sales in 2015. Foreign currency translation reduced sales by approximately $3.35 billion, as compared to 2014. Excluding the impact of foreign currency translation, sales increased 3 percent in 2015, compared to 2014.

In 2015, vehicle production increased 3 percent to 17.5 million units in North America and increased 4 percent to 21.0 million units in Europe, each compared to 2014.

Excluding the impact of foreign currency translation, complete vehicle assembly sales decreased 10 percent in 2015, compared to 2014. Complete vehicle assembly volumes decreased 23 percent to approximately 104,000 units.

For the year ended Dec. 31, 2015, income from continuing operations before income taxes was $2.7 billion, net income from continuing operations attributable to Magna International Inc. was $1.9 billion and diluted earnings per share from continuing operations were $4.72, increases of $46 million, $22 million and $0.28, respectively, each compared to 2014.

For the year ended Dec. 30, 2015, other expense (income) positively impacted income from continuing operations before income taxes by $166 million, net income from continuing operations attributable to Magna International Inc. by $95 million, and diluted earnings per share from continuing operations by $0.23 respectively.

During 2015, the company generated cash from operations before changes in operating assets and liabilities of $2.7 billion, and invested $344 million in operating assets and liabilities. Total investment activities for 2015 were $2.0 billion, including $1.6 billion in fixed asset additions, $222 million in acquisitions and $221 million in investments other assets.

Don Walker, Magna’s CEO, commented, “Overall, we are satisfied with the progress we made during 2015. We took important steps to reposition our product portfolio for the future, in particular entering into a transaction to acquire Getrag, and disposing of substantially all of our interiors business.

“On the operations front, excluding the negative translation impact from the strengthening of the U.S. dollar, we reported strong results. We have experienced some challenges in certain facilities which we are working to overcome.

“Looking forward, we are excited about Magna’s future. We are confident that our ability to integrate our vast capabilities, a competitive advantage compared to our peers, together with our accelerated innovation activities, leave us well positioned to remain a key supplier partner to automotive manufacturers. We believe this strong positioning will enable us to drive continued growth,” he said.

Increased Quarterly Cash Dividend

Magna’s board of directors also declared a quarterly dividend with respect to the company’s outstanding Common Shares for the quarter, ended Dec. 31, 2015. The board increased the dividend by 14 percent to $0.25 per share. This dividend is payable on March 24, 2016 to shareholders of record on March 11, 2016.

Vince Galifi, Magna’s chief financial officer, stated, “Our quarterly dividend of $0.25, an increase of 14 percent, represents a record dividend rate for Magna. This is the sixth straight year of dividend increase in the fourth quarter, reflecting our commitment to returning capital to shareholders and the ongoing confidence our board has in Magna’s future.”