Magna International Inc. has reported financial results for the second quarter ended June 30, 2022.
Three Months Ended June 30, 2022
Sales were $9.4 billion, an increase of 4% over the second quarter of 2021, as global light vehicle production increased 2%, largely driven by a 14% increase in North America.
Adjusted EBIT of $358 million in the second quarter of 2022 decreased 36% from the second quarter of 2021, and Adjusted EBIT as a percentage of sales decreased to 3.8% compared to 6.2%, both largely as a result of higher net production input costs, as well as operating inefficiencies and other costs at a facility in Europe.
Net (loss) income attributable to Magna International Inc. was $(156) million for the second quarter of 2022 compared to $424 million for the second quarter of 2021.
In the second quarter of 2022, Magna generated cash from operations before changes in operating assets and liabilities of $560 million and used $139 million in operating assets and liabilities. Investment activities for the second quarter of 2022 included $329 million in fixed asset additions, an $80 million increase in investments, other assets and intangible assets, and $2 million in public and private equity investments.
Six Months Ended June 30, 2022
Magna posted sales of $19 billion for the six months ended June 30, 2022, a decrease of 1% from the six months ended June 30, 2021, as global light vehicle production decreased 2%.
Adjusted EBIT decreased to $865 million for the six months ended June 30, 2022, compared to $1.3 billion for the six months ended June 30, 2021, largely due to higher net production input costs.
During the six months ended June 30, 2022, income from operations before income taxes was $332 million, net income attributable to Magna International Inc. was $208 million and diluted earnings per share was $0.70, decreases of $1 billion, $831 million, and $2.72, respectively, each compared to the first six months of 2021.
During the first six months ended June 30, 2022, Adjusted diluted earnings per share decreased 35% to $2.11 compared to the first six months of 2021.
For the six months ended June 30, 2022, Magna generated cash from operations before changes in operating assets and liabilities of $1.3 billion and used $708 million in operating assets and liabilities. Investment activities for the six months ended June 30, 2022, included $567 million in fixed asset additions, a $144 million increase in investments, other assets and intangible assets, and $4 million in public and private equity investments.
Board Appointment
The Magna board also announced the appointment of Jan Hauser, a corporate director with global leadership and accounting expertise.
