Magna International Inc. has reported financial results for the fourth quarter and year ended Dec. 31, 2016.
For the three months ended Dec. 31, 2016, Magna posted sales of $9.25 billion for the fourth quarter, an increase of 8 percent over the fourth quarter of 2015. The company said this strong year-over-year growth was achieved despite both North American and European light vehicle production decreasing 4 percent compared to the fourth quarter of 2015. Our complete vehicle assembly volumes decreased 70 percent, largely reflecting the end of production of the MINI Countryman and Paceman in the fourth quarter of 2016.
During the fourth quarter of 2016, income from continuing operations before income taxes was $646 million, an increase of 4 percent compared to the fourth quarter of 2015. Net income from continuing operations attributable to Magna International Inc. was $478 million, a decrease of 1 percent compared to the fourth quarter of 2015. Diluted earnings per share from continuing operations increased 5 cents in the fourth quarter of 2016, which includes the favorable impact of a reduced share count. Excluding unusual items, income from continuing operations before income taxes, net income from continuing operations attributable to Magna International Inc. and diluted earnings per share from continuing operations increased 6 percent, 1 percent and 7 percent, respectively, in the fourth quarter of 2016 compared to the fourth quarter of 2015.
Magna posted record sales of $36.45 billion for the year ended Dec. 31, 2016, an increase of 13 percent from the year ended Dec. 31, 2015. In comparison, both North American and European light vehicle production increased 2 percent in 2016 compared to 2015. The company’s complete vehicle assembly volumes decreased 28 percent, largely reflecting the end of production of the MINI Countryman and Paceman in the fourth quarter of 2016.
During 2016, income from continuing operations before income taxes was $2.78 billion and net income from continuing operations attributable to Magna International Inc. was $2.03 billion, increases of $129 million and $85 million, respectively, both compared to 2015. Diluted earnings per share from continuing operations increased 44 cents or 9 percent in 2016, which includes the favorable impact of a reduced share count. Excluding unusual items, income from continuing operations before income taxes, net income from continuing operations attributable to Magna International Inc. and diluted earnings per share from continuing operations increased 13 percent, 11 percent and 16 percent, respectively, in 2016 compared to 2015.
“Looking forward, as the industry undergoes significant changes over the next number of years, we believe our capabilities, innovations and deep vehicle knowledge will be instrumental in enabling the ‘Car of the Future.’ This should drive significant shareholder value,” said Don Walker, Magna’s CEO.
