Magna Posts 16% Sales Gain

Magna International Inc.’s revenue soared 16% to a record US$9.4 billion in the second quarter. Net income from continuing operations rose 4% to $558 million.

Sales through the first half of 2016 climbed 15% to $18.3 billion, including the impact of currency exchange. Net income for the six-month period rose 6% to $1.1 billion.

The Canadian supplier posted strong gains in all major markets in April-June. Volume grew 7% to $4.9 billion in North America, 36% to $2.5 billion in Europe and 28% to $499 million in Asia. Results in the rest of the world dropped 14% to $107 million.

Magna’s sales of vehicles it was contracted to assemble rose 7% to $652 million in the second quarter. But the number of vehicles actually produced shrank 9% to 25,700 units. The company says an upturn in output of Mercedes-Benz G-Class SUVs was offset by falling volumes for the Mini Countryman and Paceman small crossovers.

CEO Don Walker tells analysts the company is focusing more strongly on advanced electronics used for driver assist features and autonomous driving systems. In April the company spent $31 million to acquire connectivity engineering specialist Telemotive AG. The German company’s customers include BMW, Daimler and Volkswagen.