Magna Earnings Climb 13%

Canada's Magna International Inc. netted US$351 million in the fourth quarter of 2012 compared with $312 million a year earlier.

Revenue rose 11% to $8 billion in the October-December period, thanks to strong North American demand. The total includes a 12% jump to $687 million in sales from contract vehicle assembly.

For the full year, Magna's net income surged 40% from 2011 to $1.4 billion. Its North American unit posted robust earnings gains, Asia results were stable and European operations returned to profitability. But the company's South American business lost money because of operating inefficiencies, asset impairment and investments in new facilities.

Revenue increased 7% year over year to $30.8 billion in 2012 as sales grew in all regions of the world.

Magna had $1.5 billion in cash and $2.1 billion of untapped credit at year-end. The company says it expects to use some of that cash for acquisitions this year, particularly in Asia. Magna also hiked its quarterly dividend 16% to a record 32 cents.

The company boosted its sales outlook for 2013 to as much as $33.4 billion, up $700 million from its forecast in December. Magna predicts vehicle production will increase by 500,000 units 15.8 million units in North America and 100,000 units to 11.9 million in Europe.