Mexican Media Brands
Magna’s Revenue Climbs 7%, but Profits Stall
Magna International Inc. says its third-quarter revenue grew to US$9.5 billion from $8.8 billion in the same period last year.
#economics
Share
Magna International Inc. says its third-quarter revenue grew to US$9.5 billion from $8.8 billion in the same period last year. But net income was unchanged at US$503 million, and pretax operating income slipped 3% to $670 million.
The Canadian mega-supplier says earnings were hurt by unexpected costs associated with two Getrag drivetrain factories in Europe it agreed to acquire two years ago. New-product launch costs were greater than expected at one plant, and sales were lower than anticipated at the other facility.
Third-quarter sales gains of 14% to $2.5 billion in Europe and 5% to $576 million in Asia offset a 5% decline to $4.6 billion in North America. Magna’s contract vehicle assembly business grew 55% to $781 million. Revenue from tooling and engineering services climbed 35% to $890 million.
Magna says it plans to buy back 35.8 million of its common shares over the next 12 months, beginning next week.
The company anticipates full-year sales between $38.3 billion and $39.5 billion compared with a record $36.4 billion in 2016.
RELATED CONTENT
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.