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Magna Profit Surges, Founder Stronach Quits Board
Canada's Magna International Inc. netted US$390 million in the third quarter this year compared with $102 million in the same period of 2011.
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Canada's Magna International Inc. netted US$390 million in the third quarter this year compared with $102 million in the same period of 2011. Revenue rose 6% to $7.4 billion.
Separately, founder and Honorary Chairman Frank Stronach has resigned from the Magna board because of his increasing involvement in Austrian politics thus ending his 55-year association with the company.
He returned to his homeland after ceding control of Magna in 2010 ago and formed the Team Stronach Party. Stronach, 80, says he doesn't want his political activities to affect Magna, whose Magna Steyr contract assembly unit is based in Graz, Austria.
Magna's third-quarter net income was boosted by a one-time revaluation of its E-Car electric vehicle unit after the company bought back a controlling stake from Stronach in August. Earnings before interest, taxes and one-time items climbed to $352 million from $286 million a year earlier.
Magna's parts revenue in the July-September period rose 8% to $3.6 billion in North America, dipped 2% to $2 billion in Europe and jumped 35% to $493 million in the rest of the world. Vehicle-assembly revenue fell 6% to $620 million. Tooling and engineering sales climbed 27% to $656 million.
The company hiked its full-year revenue guidance to as much as $31.2 billion from the previous range of $29 billion-$30.5 billion.
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