Magna Posts Profit Losses, Lowers Outlook
Magna International Inc. swung to a third-quarter loss as revenue shrank, largely because of the protracted strike at General Motors Co. plants in North America.
The Canadian supplier says its revenue in July-September declined 3% to $9.3 billion. The company’s pretax operating profit plummeted from $674 million last year to a negative $319 million, eroded in part by costly product launches and higher warranty costs.
Magna’s net profit for the third quarter swung from l $554 million last year to a net loss of $233 million.
The company adjusted its previous full-year outlook downward, shrinking its revenue forecast by $1.3 billion to about $39 billion. Net income is now expected to total between $1.8 billion and $1.9 billion, compared with the previous estimate of $1.9 billion-$2.1 billion.
Dan Nicholson is vice president of General Motors Global Propulsion Systems, the organization that had been “GM Powertrain” for 24 years.
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