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Magna Posts Record Sales as Income Stalls
Magna International Inc. reports is revenue in the fourth quarter of 2016 climbed 8% to $9.3 billion.
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Magna International Inc. reports is revenue in the fourth quarter of 2016 climbed 8% to $9.3 billion. But net income slipped 1% to $478 million.
The Canadian supplier, which reports results in U.S. dollars, says its full-year sales expanded 13% to a record $36.4 billion, and net income rose 4% to $2 billion. The company notes that its sales grew three times as fast as global light-vehicle production last year, with strong gains in North America, Europe and Asia.
Magna generated $3.4 billion in cash from operations, up 45% from 2015. The company’s contract vehicle assembly business fell 28% in terms of unit output. Most of the decline was due to the end of its contracts to make the Mini Countryman and Paceman small cars in the fourth quarter.
For 2017, Magna predicts light-vehicle production of 17.7 million units in North America and 21.7 million units in Europe. The company expects its revenue this year will total between $36 million and $37.7 million.
But CEO Don Walker warns analysts that a global wave of protectionism could have a significant negative impact on Magna’s operations and profits.
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