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Magna Announces 3rd Quarter Results

The company reports record sales for the third quarter, up 7 percent to $9.5 billion.

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Magna has posted third quarter record sales of $9.50 billion for the quarter ended Sept. 30, 2017, an increase of 7 percent over the third quarter of 2016. The company said this sales increase was achieved in a period in which European light vehicle production increased 8 percent and North American light vehicle production decreased 7 percent, each relative to the third quarter of 2016. Magna’s complete vehicle assembly sales increased 55 percent in the third quarter of 2017 largely reflecting the launch of the BMW 5-Series at the Magna assembly facility in Graz, Austria, following the end of production of the MINI Countryman and Paceman in 2016.

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Net income attributable to Magna International Inc. was $503 million for the third quarters of both 2017 and 2016. Diluted earnings per share were $1.36 in the third quarter of 2017 compared to $1.29 in the third quarter of 2016, reflecting the favorable impact of a reduced share count.

During the third quarter of 2017, Adjusted EBIT decreased 3 percent to $692 million, compared to $715 million for the third quarter of 2016.

“I’m pleased with our overall performance as we posted record third quarter results. Magna remains well-positioned to benefit from the shift toward electrification, autonomy and vehicle light-weighting. In China, our recently announced joint venture with HASCO was awarded a highly integrated e-drive system for a German OEM. At the Frankfurt Auto Show, we unveiled our MAX4 autonomous driving platform, which enables up to Level 4 autonomous driving capabilities. Our product breadth combined with complete vehicle design and engineering capabilities uniquely positions Magna to be a supplier of solutions,” said Don Walker, Magna’s CEO.

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Nine months ended Sept. 30, 2017

Magna posted sales of $28.56 billion for the nine months ended Sept. 30, 2017, an increase of 5 percent from the nine months ended Sept. 30, 2016. North American light vehicle production decreased 3 percent and European light vehicle production increased 3 percent in the first nine months of 2017 compared to the first nine months of 2016.

During the nine months ended Sept. 30, 2017, income from operations before income taxes was $2.24 billion, net income attributable to Magna International Inc. was $1.65 billion and diluted earnings per share were $4.37, increases of $104 million, $97 million and 45 cents, respectively, each compared to the first nine months of 2016.

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During the nine months, adjusted EBIT increased 4 percent to $2.30 billion, compared to $2.20 billion for the nine months ended Sept. 30, 2016.

Return of capital to shareholders

During the three months ended Sept. 30, 2017, Magna repurchased 8.7 million shares for $422 million. In addition, the company paid dividends of $99 million in the third quarter of 2017.

The Magna board of directors declared a quarterly dividend of 27.5 cents with respect to its outstanding Common Shares for the quarter ended Sept. 30, 2017. This dividend is payable on Dec. 8, 2017 to shareholders of record on Nov. 24, 2017.

“We continue to return capital to our shareholders while maintaining a strong balance sheet. With the expiration of our current Normal Course Issuer Bid (NCIB), we have returned over $900 million through share repurchases and more than $300 million in dividends as of the end of the third quarter. Since 2012, we have returned approximately $6.7 billion to our shareholders, $5.1 billion through the repurchase of more than 20 percent of our outstanding shares and $1.6 billion in dividends. Our new NCIB provides flexibility to continue repurchasing up to 10 percen of our shares over the next year,” said Vince Galifi, Magna’s chief financial officer.

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