| 10:00 AM EST

Magna Cuts Outlook as Income Jumps 68%



Facebook Share Icon LinkedIn Share Icon Twitter Share Icon Share by EMail icon Print Icon

Magna International Inc. reports its adjusted net income in the first quarter of 2019 surged to US$1.1 billion from $660 million in the same period last year.

But revenue in January-March slipped 2% to $10.6 billion, and adjusted pretax earnings fell 18% to $720 million.

EBIT as a percentage of sales fell to 6.8% from 8.1% in last year’s first quarter. Magna blames higher engineering costs in its Power & Vision business, launch costs for new seating programs and a rise in the company’s lower-margin contract vehicle production operations.

The giant Canadian supplier lowered its outlook, pointing to higher-than-expected costs for advanced technology products, a drop in estimated global car production and slumping income from a Getrag transmission joint venture in China.

Magna now predicts light-vehicle output in North America will total 16.7 million units in 2019 compared with its previous estimate of 17.0 million. The company anticipates production in Europe will total 21.5 million units, down from its previous guidance of 22.3 million.

The company also lowered its total sales forecast to about $40 billion, trimmed its adjusted EBIT margin to 6.7%-7.0% and reduced its net income outlook to $1.9 billion-$2.1 billion from $2.1 billion-$2.3 billion.

Related Topics


  • Suzuki Refines Hayabusa Engine

    When Suzuki developed the GSX1300R, it set out to build the fastest mass-production motorcycle on the market. As competitors gained ground and stringent emission regulations were set, Suzuki set out to reinvent the bike.

  • Can You Glue A Car Together?

    I'm not talking about a plastic Revell model of a '57 Chevy, but a real vehicle, one that rolls off an assembly line in 1999 with another 99,999 just like it right behind. Is it possible, or is this just a fantasy of the marketing department at Elmer's?

  • 2016 Prius: The Fourth Generation

    The little car that could still can. And this time as a car that not only gets great fuel economy, but which has ride and handling that makes it more than an econo-box (and its styling is anything but boxy).