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
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data