Magna International Inc. (TSX: MG; NYSE: MGA) today reported
financial results for the fourth quarter and year ended December
31, 2020.
|
|
THREE MONTHS ENDED DECEMBER 31, |
|
YEAR ENDED DECEMBER 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
10,568 |
|
$ |
9,395 |
|
$ |
32,647 |
|
$ |
39,431 |
|
|
|
|
|
|
|
|
|
Income from operations before income taxes |
|
$ |
973 |
|
$ |
579 |
|
$ |
1,006 |
|
$ |
2,223 |
|
|
|
|
|
|
|
|
|
Net income attributable to Magna International
Inc. |
|
$ |
738 |
|
$ |
440 |
|
$ |
757 |
|
$ |
1,765 |
|
|
|
|
|
|
|
|
|
Diluted earnings per share |
|
$ |
2.45 |
|
$ |
1.43 |
|
$ |
2.52 |
|
$ |
5.59 |
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT |
|
$ |
1,095 |
|
$ |
590 |
|
$ |
1,676 |
|
$ |
2,545 |
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per share |
|
$ |
2.83 |
|
$ |
1.41 |
|
$ |
3.95 |
|
$ |
6.05 |
|
|
|
|
|
|
|
|
|
All results are reported in millions of U.S. dollars,
except per share figures, which are in U.S. dollars. |
|
(1) Adjusted EBIT and Adjusted diluted earnings per share are
Non-GAAP financial measures that have no standardized meaning under
U.S. GAAP, and as a result may not be comparable to the calculation
of similar measures by other companies. A reconciliation of these
Non-GAAP financial measures is included in the back of this press
release. |
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/f13a4d9c-17ff-4acb-a675-8e472efb9d71
THREE MONTHS ENDED DECEMBER 31,
2020
Sales and Adjusted EBIT came in ahead of our
expectations in the fourth quarter of 2020, as vehicle production
was better than anticipated and we continued to benefit from strong
operating performance. We also benefitted from higher than
anticipated equity income.
On a consolidated basis, we posted sales of
$10.6 billion for the fourth quarter of 2020, an increase of 12%
from the fourth quarter of 2019, compared to global light vehicle
production that increased 4%, reflecting increases of 3% in each of
North America and Europe, and 10% in China.
Adjusted EBIT increased to $1.1 billion in the
fourth quarter of 2020 compared to $590 million in the fourth
quarter of 2019. The increase mainly reflected margin earned on
higher sales, improved productivity, cost savings and efficiencies
realized, including as a result of restructuring actions, and the
negative impact of the labour strike at General Motors in the
fourth quarter of 2019.
Income from operations before income taxes was
$973 million for the fourth quarter of 2020 compared to $579
million in the fourth quarter of 2019. Included in income from
operations before income taxes in the fourth quarter of 2020 was
Other expense, net of $100 million, comprised of restructuring and
impairment costs and a loss on the sale of an equity-accounted
investment, partially offset by net gains on the revaluation of
certain private equity investments, compared to Other income, net
of $8 million in the fourth quarter of 2019, substantially
comprised of net gains on the revaluation of certain private equity
investments, partially offset by restructuring costs. Excluding
Other expense (income), net from both periods, income from
operations before income taxes increased $502 million in the fourth
quarter of 2020 compared to the fourth quarter of 2019.
Net income attributable to Magna International
Inc. was $738 million for the fourth quarter of 2020 compared to
$440 million in the fourth quarter of 2019. Included in net income
attributable to Magna International Inc. in the fourth quarter of
2020 was Other expense, net of $113 million after tax, compared to
Other income, net of $7 million in the fourth quarter of 2019.
Excluding Other expense (income), net from both periods, net income
attributable to Magna International Inc. increased $418 million in
the fourth quarter of 2020 compared to the fourth quarter of
2019.
Diluted earnings per share increased to $2.45 in
the fourth quarter of 2020, compared to $1.43 in the comparable
period. Adjusted diluted earnings per share increased 101% to $2.83
compared to $1.41 for the fourth quarter of 2019.
In the fourth quarter of 2020, we generated $2.3
billion in cash from operating activities after changes in
operating assets and liabilities. Investment activities for the
fourth quarter of 2020 included $560 million in fixed asset
additions, $98 million for investments, other assets and intangible
assets, and $18 million in private equity investments. We also
assumed cash of $98 million related to a business combination.
YEAR ENDED DECEMBER 31, 2020
We posted sales of $32.6 billion for the year
ended December 31, 2020, a decrease of 17% from the year ended
December 31, 2019. This is compared to global light vehicle
production which decreased 17% in 2020 compared to 2019, largely
due to the COVID-19 pandemic and related restrictions that resulted
in the temporary suspension of production at substantially all OEM
and supplier production facilities in the first half of 2020.
Vehicle production declined 20% and 23% in our most significant
production markets of North America and Europe, respectively, and
declined 4% in China.
Adjusted EBIT decreased to $1.68 billion in
2020, compared to $2.55 billion for 2019. The decrease was
primarily as a result of reduced earnings due to lower sales,
partially offset by cost savings and efficiencies realized,
including as a result of restructuring actions, and the negative
impact of the labour strike at General Motors in 2019.
During 2020, income from operations before
income taxes was $1.0 billion and net income attributable to Magna
International Inc. was $757 million, down $1.2 billion and $1.0
billion, respectively, each compared to 2019.
Diluted earnings per share decreased to $2.52
for 2020, compared to $5.59 for 2019. Our adjusted diluted earnings
per share decreased 35% to $3.95 for 2020 compared to $6.05 for
2019. During 2020, we generated cash from operations of
$3.3 billion including changes in operating assets and liabilities.
Investment activities for 2020 included $1.15 billion in fixed
asset additions, $331 million in investments, other assets and
intangible assets, and $132 million in private equity investments,
primarily related to Waymo. We also assumed net cash of $91 million
related to business combinations.
RETURN OF CAPITAL TO
SHAREHOLDERS
During the three months and year ended December
31, 2020, we paid dividends of $115 million and $467 million,
respectively. In addition, we repurchased 4.8 million shares for
cancellation for $192 million in the first quarter of 2020.
Our Board of Directors declared a fourth quarter
dividend of $0.43 per Common Share. This represents an 8%
increase in the dividend. The dividend is payable on March 19, 2021
to shareholders of record as of the close of business on March 5,
2021.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/6c30d392-2723-45de-a89c-6a485ac5b389
2021 AND 2023 OUTLOOK
Our current year Outlook is provided annually
and updated quarterly; our 2023 Outlook is provided below, but not
updated quarterly.
2021 and 2023 Outlook
Assumptions
|
|
2021 |
|
2023 |
Light Vehicle Production
(millions of units) |
|
|
|
|
North America |
|
15.9 |
|
16.3 |
Europe |
|
18.5 |
|
20.1 |
China |
|
24.0 |
|
26.0 |
|
|
|
|
|
Average Foreign exchange
rates: |
|
|
|
|
1 Canadian dollar equals |
|
US$0.770 |
|
US$0.770 |
1 euro equals |
|
US$1.210 |
|
US$1.210 |
|
|
|
|
|
2021 and 2023 Outlook
|
|
2021 |
|
2023 |
Segment Sales |
|
|
|
|
Body Exteriors & Structures |
|
$16.5 - $17.1 billion |
|
$18.0 - $19.0 billion |
Power & Vision |
|
$11.6 - $12.0 billion |
|
$13.0 - $13.6 billion |
Seating Systems |
|
$5.8 - $6.1 billion |
|
$6.1 - $6.5 billion |
Complete Vehicles |
|
$6.5 - $6.8 billion |
|
$6.3 - $6.8 billion |
Total Sales |
|
$40.0 - $41.6 billion |
|
$43.0 - $45.5 billion |
|
|
|
|
|
Adjusted EBIT Margin(1) |
|
7.1% - 7.5% |
|
8.1% - 8.6% |
|
|
|
|
|
Equity Income (included in
EBIT) |
|
$85 - $115 million |
|
$155 - $200 million |
|
|
|
|
|
Interest Expense, net |
|
Approximately $110 million |
|
|
|
|
|
|
|
Income Tax Rate(2) |
|
Approximately 23% |
|
|
|
|
|
|
|
Net Income attributable to
Magna(3) |
|
$2.1 - $2.3 billion |
|
|
|
|
|
|
|
Capital Spending |
|
Approximately $1.6 billion |
|
|
|
|
|
|
|
Notes:(1) Adjusted EBIT Margin is the ratio of Adjusted EBIT to
Total Sales(2) The Income Tax Rate has been calculated using
Adjusted EBIT and is based on current tax legislation(3) Net Income
attributable to Magna represents Net Income excluding Other expense
(income), net |
Our Outlook is intended to provide information
about management's current expectations and plans and may not be
appropriate for other purposes. Although considered reasonable by
Magna as of the date of this document, the 2021 and 2023 Outlook
above and the underlying assumptions may prove to be inaccurate.
Accordingly, our actual results could differ materially from our
expectations as set forth herein. The risks identified in the
“Forward-Looking Statements” section below represent the primary
factors which we believe could cause actual results to differ
materially from our expectations.
Key Drivers of Our Business
Our operating results are primarily dependent on
the levels of North American, European and Chinese car and light
truck production by our customers. While we supply systems and
components to every major original equipment manufacturer ["OEM"],
we do not supply systems and components for every vehicle, nor is
the value of our content consistent from one vehicle to the next.
As a result, customer and program mix relative to market trends, as
well as the value of our content on specific vehicle production
programs, are also important drivers of our results.
OEM production volumes are generally aligned
with vehicle sales levels and thus affected by changes in such
levels. Aside from vehicle sales levels, production volumes are
typically impacted by a range of factors, including: general
economic and political conditions; labour disruptions; free trade
arrangements; tariffs; relative currency values; commodities
prices; supply chains and infrastructure; availability and relative
cost of skilled labour; regulatory considerations, including those
related to environmental emissions and safety standards; and other
factors. Additionally, COVID-19 can impact vehicle production
volumes, including through: mandatory stay-at-home orders which
restrict production; elevated employee absenteeism; and supply
chain disruptions, such as the semiconductor chip shortage
currently impacting global vehicle production volumes.
Overall vehicle sales levels are significantly
affected by changes in consumer confidence levels, which may in
turn be impacted by consumer perceptions and general trends related
to the job, housing and stock markets, as well as other
macroeconomic and political factors. Other factors which typically
impact vehicle sales levels and thus production volumes include:
interest rates and/or availability of credit; fuel and energy
prices; relative currency values; regulatory restrictions on use of
vehicles in certain megacities; and other factors. Additionally,
COVID-19 can impact vehicle sales, including through: mandatory
stay-at-home orders which restrict operations of car dealerships;
and lower consumer confidence due to deterioration in household
income.
Segment Analysis[All amounts in U.S. dollars
and all tabular amounts in millions unless otherwise noted]
Body
Exteriors & Structures |
|
|
For the
three months |
|
|
|
|
ended December 31, |
|
|
|
|
2020 |
|
2019 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
4,393 |
|
$ |
3,923 |
|
$ |
470 |
|
|
+ 12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBIT |
|
$ |
543 |
|
$ |
289 |
|
$ |
254 |
|
|
+ 88% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
as a percentage of sales (i) |
|
|
12.4% |
|
|
7.4% |
|
|
|
|
|
+ 5.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) Adjusted EBIT as a percentage of sales is
calculated as Adjusted EBIT divided by Sales. |
|
Sales for Body Exteriors & Structures
increased 12% or $470 million to $4.39
billion for the fourth quarter of 2020 compared to $3.92
billion in 2019. The increase in sales was primarily due to
the negative impact of the labour strike at GM during the fourth
quarter of 2019, the launch of new programs during or subsequent to
the fourth quarter of 2019, including the Ford Bronco Sport and
Mustang Mach E, General Motors full-size SUVs, and Mercedes-Benz
GLE Coupe, a $64 million increase in reported U.S. dollar
sales primarily as a result of the net strengthening of foreign
currencies against the U.S. dollar, as well as the
increase in global light vehicle production. These were partially
offset by the end of production of certain programs, and net
customer price concessions.
Adjusted EBIT for Body Exteriors &
Structures increased $254 million to $543 million
for the fourth quarter of 2020 compared to $289 million for
the fourth quarter of 2019 and Adjusted EBIT as a percentage
of sales increased 5.0% to 12.4% for the fourth quarter of 2020
compared to 7.4% for the fourth quarter of 2019. The increases
reflect improved productivity, cost savings and efficiencies
realized, including as a result of restructuring actions, the
negative impact of the labour strike at GM during the fourth
quarter of 2019 and earnings on higher sales.
Power & Vision |
|
|
For the three months |
|
|
|
|
|
|
|
ended December 31, |
|
|
|
|
|
|
|
2020 |
|
2019 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
3,179 |
|
$ |
2,725 |
|
$ |
454 |
|
+ 17% |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBIT |
|
$ |
359 |
|
$ |
163 |
|
$ |
196 |
|
+ 120% |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
as a percentage of sales |
|
|
11.3% |
|
|
6.0% |
|
|
|
|
+ 5.3% |
|
|
|
|
|
|
|
|
|
|
|
|
Sales for Power & Vision increased 17%
or $454 million to $3.18 billion for the fourth
quarter of 2020 compared to $2.73 billion for the fourth
quarter of 2019. The increase in sales was primarily due to the
negative impact of the labour strike at GM during the fourth
quarter of 2019, the launch of new programs during or subsequent to
the fourth quarter of 2019, including the Mercedes-Benz GLB, Land
Rover Defender, Genesis G80, and BMW 2-Series Gran Coupe, a $113
million increase in reported U.S. dollar sales primarily as a
result of the net strengthening of foreign currencies against
the U.S. dollar, as well as the increase in global light
vehicle production. These were partially offset by net customer
price concessions.
Adjusted EBIT for Power & Vision increased
$196 million to $359 million for the fourth quarter of
2020 compared to $163 million for the fourth quarter of 2019,
and Adjusted EBIT as a percentage of sales increased 5.3% to 11.3%,
for the fourth quarter of 2020 compared to 6.0% for the fourth
quarter of 2019. The increases were primarily due to earnings on
higher sales, cost savings and efficiencies realized, including as
a result of restructuring actions, the negative impact of the
labour strike at GM during the fourth quarter of 2019, lower
engineering costs in our ADAS business, substantially associated
with three programs that will be utilizing new technologies, higher
equity income and lower spending associated with our former
collaboration with Lyft. These were partially offset by lower net
favourable commercial items.
Seating Systems |
|
|
For the three months |
|
|
|
|
ended December 31, |
|
|
|
|
|
|
|
|
2020 |
|
2019 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
1,390 |
|
$ |
1,426 |
|
$ |
(36) |
|
|
- 3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBIT |
|
$ |
85 |
|
$ |
79 |
|
$ |
6 |
|
|
+ 8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
as a percentage of sales |
|
|
6.1% |
|
|
5.5% |
|
|
|
|
|
+ 0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales for Seating Systems declined 3%
or $36 million to $1.39 billion for the fourth
quarter of 2020 compared to $1.43 billion for the fourth
quarter of 2019. This decrease was primarily due to lower
production on certain key programs, in particular the Chrysler
Minivan, the end of production of certain programs, a $5 million
decrease in reported U.S. dollar sales and net customer price
concessions. These were partially offset by the launch of new
programs during or subsequent to the fourth quarter of 2019,
including the BMW 1-Series, BMW 2-Series Gran Coupe, Ford Escape
and Audi A3, and the negative impact of the labour strike at GM
during the fourth quarter of 2019.
Adjusted EBIT for Seating Systems
increased $6 million to $85 million for the
fourth quarter of 2020 compared to $79 million for the
fourth quarter of 2019 and Adjusted EBIT as a percentage of sales
increased 0.6% to 6.1% for the fourth quarter of 2020 compared to
5.5% for the fourth quarter of 2019. The increases were
primarily due to cost savings and efficiencies realized, including
as a result of restructuring actions, the negative impact of the
labour strike at GM during the fourth quarter of 2019 and
productivity and efficiency improvements at an underperforming
facility. These were partially offset by lower earnings on the
lower sales.
Complete Vehicles |
|
|
For the
three months |
|
|
|
|
ended December 31, |
|
|
|
|
2020 |
|
2019 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
Complete
Vehicle Assembly Volumes (thousands of units) |
|
|
34.5 |
|
|
33.9 |
|
|
|
|
+ 2% |
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
1,759 |
|
$ |
1,461 |
|
$ |
298 |
|
+ 20% |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBIT |
|
$ |
110 |
|
$ |
44 |
|
$ |
66 |
|
+ 150% |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
as a percentage of sales |
|
|
6.3% |
|
|
3.0% |
|
|
|
|
+ 3.3% |
|
|
|
|
|
|
|
|
|
|
|
|
Sales for Complete Vehicles increased 20%
or $298 million to $1.76 billion for the fourth
quarter of 2020 compared to $1.46 billion for the fourth
quarter of 2019, and assembly volumes increased 2% or 600 units.
This sales increase was primarily due to higher volumes on the
Jaguar I-Pace, BMW 5 Series and Mercedes Benz G-Class and a $122
million increase in reported U.S. dollar sales as a result of the
strengthening of the euro against the U.S. dollar, partially offset
by lower assembly volumes on the Jaguar E-Pace, BMW Z4 and Toyota
Supra.
Adjusted EBIT for Complete Vehicles
increased $66 million to $110 million in the fourth
quarter of 2020, and Adjusted EBIT as a percentage of sales
improved to 6.3% in the fourth quarter of 2020 compared to 3.0% in
the fourth quarter of 2019. The increases were primarily due to
higher earnings on engineering sales, favourable program mix, the
benefit of a cost cutting initiative, and restructuring and
downsizing costs incurred during the fourth quarter of 2019.
|
MAGNA
INTERNATIONAL INC. |
CONSOLIDATED
STATEMENTS OF INCOME |
[Unaudited] |
[U.S. dollars in
millions, except per share figures] |
|
|
|
Three months ended |
|
Year ended |
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Sales |
|
$ |
10,568 |
|
$ |
9,395 |
|
$ |
32,647 |
|
$ |
39,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
8,753 |
|
|
8,085 |
|
|
28,207 |
|
|
34,022 |
Depreciation and amortization |
|
|
362 |
|
|
355 |
|
|
1,366 |
|
|
1,345 |
Selling, general and administrative |
|
|
448 |
|
|
423 |
|
|
1,587 |
|
|
1,697 |
Interest expense, net |
|
|
22 |
|
|
19 |
|
|
86 |
|
|
82 |
Equity income |
|
|
(90) |
|
|
(58) |
|
|
(189) |
|
|
(178) |
Other expense (income), net [i] |
|
|
100 |
|
|
(8) |
|
|
584 |
|
|
240 |
Income from operations before income taxes |
|
|
973 |
|
|
579 |
|
|
1,006 |
|
|
2,223 |
Income taxes |
|
|
223 |
|
|
134 |
|
|
329 |
|
|
591 |
Net income |
|
|
750 |
|
|
445 |
|
|
677 |
|
|
1,632 |
(Income) loss
attributable to non-controlling interests |
|
|
(12) |
|
|
(5) |
|
|
80 |
|
|
133 |
Net income
attributable to Magna International Inc. |
|
$ |
738 |
|
$ |
440 |
|
$ |
757 |
|
$ |
1,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.46 |
|
$ |
1.44 |
|
$ |
2.52 |
|
$ |
5.61 |
Diluted |
|
$ |
2.45 |
|
$ |
1.43 |
|
$ |
2.52 |
|
$ |
5.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid
per Common Share |
|
$ |
0.400 |
|
$ |
0.365 |
|
$ |
1.60 |
|
$ |
1.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of Common Shares outstanding
during the period [in millions]: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
299.6 |
|
|
305.0 |
|
|
299.7 |
|
|
314.7 |
Diluted |
|
|
300.9 |
|
|
306.3 |
|
|
300.4 |
|
|
315.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
[i] See "Other expense (income), net"
information included in this Press Release. |
|
|
|
|
|
|
|
|
|
|
|
|
|
MAGNA INTERNATIONAL INC. |
CONSOLIDATED BALANCE SHEETS |
[Unaudited] |
[U.S. dollars in millions] |
|
|
As
at |
|
As at |
|
|
December
31, |
|
December 31, |
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,268 |
|
$ |
1,276 |
Accounts receivable |
|
|
6,394 |
|
|
5,927 |
Inventories |
|
|
3,444 |
|
|
3,304 |
Prepaid expenses and
other |
|
|
260 |
|
|
238 |
|
|
|
13,366 |
|
|
10,745 |
|
|
|
|
|
|
|
Investments |
|
|
947 |
|
|
1,210 |
Fixed assets, net |
|
|
8,475 |
|
|
8,260 |
Operating lease right-of-use assets |
|
|
1,906 |
|
|
1,811 |
Intangible assets, net |
|
|
481 |
|
|
484 |
Goodwill |
|
|
2,095 |
|
|
1,976 |
Deferred tax assets |
|
|
372 |
|
|
308 |
Other assets |
|
|
963 |
|
|
996 |
|
|
$ |
28,605 |
|
$ |
25,790 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
6,266 |
|
$ |
5,628 |
Other accrued liabilities |
|
|
2,254 |
|
|
1,800 |
Accrued salaries and wages |
|
|
815 |
|
|
753 |
Income taxes payable |
|
|
38 |
|
|
17 |
Long‑term debt due within one year |
|
|
129 |
|
|
106 |
Current portion of
operating lease liabilities |
|
|
241 |
|
|
225 |
|
|
|
9,743 |
|
|
8,529 |
|
|
|
|
|
|
|
Long‑term debt |
|
|
3,973 |
|
|
3,062 |
Operating lease liabilities |
|
|
1,656 |
|
|
1,601 |
Long-term employee benefit liabilities |
|
|
729 |
|
|
677 |
Other long‑term liabilities |
|
|
332 |
|
|
371 |
Deferred tax
liabilities |
|
|
452 |
|
|
419 |
|
|
|
16,885 |
|
|
14,659 |
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
Capital stock |
|
|
|
|
|
|
Common Shares |
|
|
|
|
|
|
[issued: 300,527,416; December 31, 2019 – 303,250,415] |
|
|
3,271 |
|
|
3,198 |
Contributed surplus |
|
|
128 |
|
|
127 |
Retained earnings |
|
|
8,704 |
|
|
8,596 |
Accumulated other
comprehensive loss |
|
|
(733) |
|
|
(1,090) |
|
|
|
11,370 |
|
|
10,831 |
|
|
|
|
|
|
|
Non-controlling
interests |
|
|
350 |
|
|
300 |
|
|
|
11,720 |
|
|
11,131 |
|
|
$ |
28,605 |
|
$ |
25,790 |
|
MAGNA
INTERNATIONAL INC. |
CONSOLIDATED
STATEMENTS OF CASH FLOWS |
[Unaudited] |
[U.S. dollars in
millions] |
|
|
Three months
ended |
|
Year
ended |
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided from (used for): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
750 |
|
$ |
445 |
|
$ |
677 |
|
$ |
1,632 |
Items not involving
current cash flows |
|
|
581 |
|
|
509 |
|
|
2,065 |
|
|
1,976 |
|
|
|
1,331 |
|
|
954 |
|
|
2,742 |
|
|
3,608 |
Changes in operating
assets and liabilities |
|
|
928 |
|
|
742 |
|
|
536 |
|
|
352 |
Cash provided
from operating activities |
|
|
2,259 |
|
|
1,696 |
|
|
3,278 |
|
|
3,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Fixed asset additions |
|
|
(560) |
|
|
(513) |
|
|
(1,145) |
|
|
(1,441) |
Increase in investments, other assets and intangible
assets |
|
|
(98) |
|
|
(122) |
|
|
(331) |
|
|
(384) |
Increase in private equity investments |
|
|
(18) |
|
|
— |
|
|
(132) |
|
|
(10) |
Proceeds from dispositions |
|
|
69 |
|
|
16 |
|
|
117 |
|
|
185 |
Business combinations |
|
|
98 |
|
|
5 |
|
|
91 |
|
|
(147) |
Proceeds from sale of Lyft, Inc. |
|
|
— |
|
|
221 |
|
|
— |
|
|
231 |
Proceeds on sale of
business |
|
|
— |
|
|
— |
|
|
— |
|
|
1,132 |
Cash used for
investing activities |
|
|
(509) |
|
|
(393) |
|
|
(1,400) |
|
|
(434) |
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Issues of debt |
|
|
(2) |
|
|
11 |
|
|
854 |
|
|
47 |
Decrease in short-term borrowings |
|
|
(13) |
|
|
(436) |
|
|
(31) |
|
|
(1,124) |
Repayments of debt |
|
|
(12) |
|
|
(10) |
|
|
(140) |
|
|
(149) |
Issue of Common Shares on exercise of stock options |
|
|
64 |
|
|
11 |
|
|
81 |
|
|
44 |
Tax withholdings on vesting of equity awards |
|
|
(3) |
|
|
(4) |
|
|
(13) |
|
|
(9) |
Repurchase of Common Shares |
|
|
— |
|
|
(254) |
|
|
(203) |
|
|
(1,289) |
Contributions to subsidiaries by non-controlling interests |
|
|
18 |
|
|
— |
|
|
18 |
|
|
4 |
Dividends paid to non-controlling interests |
|
|
(12) |
|
|
(9) |
|
|
(18) |
|
|
(22) |
Dividends paid |
|
|
(115) |
|
|
(111) |
|
|
(467) |
|
|
(449) |
Cash (used
for) provided from financing activities |
|
|
(75) |
|
|
(802) |
|
|
81 |
|
|
(2,947) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and
restricted cash equivalents |
|
|
81 |
|
|
10 |
|
|
23 |
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash, cash equivalents and
restricted cash equivalents during the period |
|
|
1,756 |
|
|
511 |
|
|
1,982 |
|
|
590 |
Cash, cash equivalents
and restricted cash equivalents, beginning of
period |
|
|
1,618 |
|
|
881 |
|
|
1,392 |
|
|
802 |
Cash, cash
equivalents and restricted cash equivalents,
end of period |
|
$ |
3,374 |
|
$ |
1,392 |
|
$ |
3,374 |
|
$ |
1,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
MAGNA INTERNATIONAL INC. |
SUPPLEMENTAL DATA |
[Unaudited] |
[All
amounts in U.S. dollars and all tabular amounts in millions unless
otherwise noted] |
|
OTHER
EXPENSE (INCOME), NET |
|
|
|
|
|
|
|
|
|
|
|
|
|
During the three months and year ended December
31, 2020 and 2019, the Company recorded Other expense (income), net
items as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Year
ended |
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
Impairments and loss on sale of equity-accounted investments
[a] |
|
$ |
10 |
|
$ |
— |
|
$ |
347 |
|
$ |
700 |
Restructuring and impairments [b] |
|
|
101 |
|
|
3 |
|
|
269 |
|
|
58 |
Net (gains) losses on investments [c] |
|
|
(11) |
|
|
(11) |
|
|
(32) |
|
|
6 |
Gain on sale of
business [d] |
|
|
— |
|
|
— |
|
|
— |
|
|
(524) |
Other expense
(income), net |
|
$ |
100 |
|
$ |
(8) |
|
$ |
584 |
|
$ |
240 |
[a] |
Impairments and loss on sale of equity-accounted
investments |
|
|
|
The following table summarizes the impairment charges and loss
on sale recorded for certain investments in the Company's Power
& Vision segment: |
|
|
|
|
Three months
ended |
|
Year
ended |
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Getrag (Jiangxi) Transmission Co., Ltd. ["GJT"] [i] |
|
$ |
— |
|
$ |
— |
|
$ |
337 |
|
$ |
511 |
Getrag Ford Transmission GmbH ["GFT"] [ii] |
|
|
— |
|
|
— |
|
|
— |
|
|
150 |
Dongfeng Getrag
Transmission Co. Ltd. ["DGT"] [iii] |
|
|
10 |
|
|
— |
|
|
10 |
|
|
39 |
Total impairments and loss on sale of equity-accounted
investments |
|
|
10 |
|
|
— |
|
|
347 |
|
|
700 |
Tax effect on Other expense, net |
|
|
9 |
|
|
— |
|
|
(53) |
|
|
(36) |
Loss attributable to
non-controlling interests |
|
|
— |
|
|
— |
|
|
(75) |
|
|
(127) |
Non-cash
impairment charge included in Net
income attributable to Magna International Inc. |
|
$ |
19 |
|
$ |
— |
|
$ |
219 |
|
$ |
537 |
|
|
[i] |
During 2019, the Company recorded an impairment charge related to
its equity-accounted investment in GJT. The impairment was based on
the in-sourcing of transmissions by certain Chinese OEMs, lower
than expected sales, pricing pressure in the China market, and
declines in volume projections for manual transmissions and
dual-clutch transmissions in China. |
|
|
|
|
|
During 2020,
an impairment for GJT was recorded based on pricing pressure in the
China market as a result of the global economic climate, as well as
additional declines in volume and sales projections for the
foreseeable future. In the fourth quarter of 2020, the governing
documents related to GJT were revised, providing the Company with a
controlling financial interest. As a result, the Company
began consolidating GJT on December 29, 2020, the effective date of
the amendments. |
|
|
|
|
[ii] |
On December
22, 2020, the Company entered into multiple agreements with the
Ford Motor Company ["Ford"] to operate certain businesses within
GFT under separate ownership. The transaction is expected to
close in the first quarter of 2021. In 2019 the Company recorded an
impairment charge related to its equity investment in GFT as a
result of lower than expected sales and declines in volume
projections for manual transmissions in Europe. |
|
|
|
|
[iii] |
During 2020,
the Company recorded a $10 million loss on the sale of its 50%
interest in DGT. An impairment loss of $39 million related to
DGT was recorded during 2019 as a result of the factors listed
above impacting the China market. |
|
|
|
MAGNA
INTERNATIONAL INC. |
SUPPLEMENTAL
DATA |
[Unaudited] |
[All amounts in U.S. dollars and all tabular amounts in millions
unless otherwise noted] |
|
OTHER
EXPENSE (INCOME), NET (CONTINUED) |
|
|
|
|
[b] |
Restructuring and impairments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table summarizes the restructuring
and fixed asset impairment charges recorded by segment for the
three months and year ended December 31, 2020: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Body Exteriors |
|
Power |
|
Seating |
|
|
|
Net of |
|
|
|
|
& Structures |
|
& Vision |
|
Systems |
|
Total |
|
Tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring |
|
$ |
21 |
|
$ |
— |
|
$ |
— |
|
$ |
21 |
|
$ |
21 |
|
|
Fixed Asset Impairments |
|
|
57 |
|
|
— |
|
|
— |
|
|
57 |
|
|
57 |
|
|
Brazil Closures
[ii] |
|
|
8 |
|
|
— |
|
|
15 |
|
|
23 |
|
|
23 |
|
|
|
|
$ |
86 |
|
$ |
— |
|
$ |
15 |
|
$ |
101 |
|
$ |
101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Body
Exteriors |
|
Power |
|
Seating |
|
|
|
|
Net
of |
|
|
|
|
& Structures |
|
& Vision |
|
Systems |
|
Total |
|
Tax |
|
|
|
|
|
COVID-19 Restructuring and Impairments [i] |
|
$ |
37 |
|
$ |
115 |
|
$ |
16 |
|
$ |
168 |
|
$ |
136 |
|
|
Restructuring |
|
|
21 |
|
|
— |
|
|
— |
|
|
21 |
|
|
21 |
|
|
Fixed Asset Impairments |
|
|
57 |
|
|
— |
|
|
— |
|
|
57 |
|
|
57 |
|
|
Brazil Closures
[ii] |
|
|
8 |
|
|
— |
|
|
15 |
|
|
23 |
|
|
23 |
|
|
|
|
$ |
123 |
|
$ |
115 |
|
$ |
31 |
|
$ |
269 |
|
$ |
237 |
|
[i] |
In response to the impact that COVID-19 was expected to have on
vehicle production volumes over the short to medium term, the
Company initiated and/or accelerated the timing of restructuring
plans to right-size its business. These restructuring actions
include plant closures and workforce reductions. |
|
|
|
|
[ii] |
In
connection with the recently announced plant closures by Ford in
Brazil, the Company made the decision to accelerate the closure of
two facilities that supply these plants. |
|
|
|
|
For the year ended December 31, 2019, the Company recorded net
restructuring charges of $31 million [$31 million after tax] at its
Body Exteriors & Structures’ operations and asset impairment
charges of $27 million [$20 million after tax] for its Electronics′
operations which are included in the Company’s Power & Vision
segment. |
|
|
|
MAGNA INTERNATIONAL INC. |
SUPPLEMENTAL DATA |
[Unaudited] |
[All amounts in U.S. dollars and all tabular amounts in millions
unless otherwise noted] |
|
OTHER EXPENSE (INCOME), NET
(CONTINUED) |
|
|
|
|
[c] |
Net (gains) losses on investments |
|
|
|
|
|
During 2020, the Company recorded unrealized gains of $34
million [$29 million after tax] on the revaluation of its private
equity investments and a non-cash impairment charge of $2 million
[$2 million after tax] related to a private equity investment,
which was included in the Corporate segment. For the three months
ended December 31, 2020, the Company recorded unrealized gains of
$13 million [$9 million after tax] on the revaluation of its
private equity investments and a non-cash impairment charge of $2
million [$2 million after tax] related to a private equity
investment. |
|
|
|
|
|
During 2019, the Company recorded net losses on investments of
$6 million [$5 million after tax]. This includes net unrealized
gains of $17 million [$15 million after tax] related to the
revaluation of its private equity investments and net losses of $23
million [$20 million after tax] related to its investment in Lyft,
Inc. ["Lyft"]. For the three months ended December 31, 2019,
the Company recorded net gains of $11 million [$10 million after
tax] substantially related to its investment in Lyft. |
|
|
|
|
|
During 2019, the Company sold 5.4 million shares of its
publicly traded equity securities in Lyft for proceeds of $231
million. |
|
|
|
|
[d] |
Gain on sale of business |
|
|
|
|
|
During 2019, the Company completed the sale of its global Fluid
Pressure & Controls business which was included in the Power
& Vision segment. Total consideration was $1.23 billion,
and the Company recognized a gain on the sale of $524 million [$447
million after tax]. |
|
|
|
MAGNA INTERNATIONAL INC.SUPPLEMENTAL
DATA[Unaudited][All amounts in U.S. dollars and all
tabular amounts in millions unless otherwise noted]
SEGMENTED INFORMATION
Magna is a global automotive supplier which has
complete vehicle engineering and contract manufacturing expertise,
as well as product capabilities which include body, chassis,
exterior, seating, powertrain, active driver assistance,
electronics, mirrors & lighting, mechatronics and roof systems.
Magna also has electronic and software capabilities across many of
these areas.
The Company is organized under four operating
segments: Body Exteriors & Structures, Power & Vision,
Seating Systems and Complete Vehicles. These segments have been
determined on the basis of technological opportunities, product
similarities, and market and operating factors, and are also the
Company's reportable segments.
The Company's chief operating decision maker
uses Adjusted Earnings before Interest and Income Taxes ["Adjusted
EBIT"] as the measure of segment profit or loss, since management
believes Adjusted EBIT is the most appropriate measure of
operational profitability or loss for its reporting segments.
Adjusted EBIT is calculated by taking Net income and adding back
Income taxes, Interest expense, net, and Other expense (income),
net.
MAGNA
INTERNATIONAL INC. |
SUPPLEMENTAL
DATA |
[Unaudited] |
[All amounts in U.S. dollars and all tabular amounts in millions
unless otherwise noted] |
|
SEGMENTED
INFORMATION (CONTINUED) |
|
The following
tables show segment information for the Company's reporting
segments and a reconciliation of Adjusted EBIT to the Company's
consolidated income from operations before income taxes: |
|
|
Three months ended December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
Fixed |
|
|
Total |
|
External |
|
Adjusted |
|
and |
|
Equity |
|
asset |
|
|
sales |
|
sales |
|
EBIT [ii] |
|
amortization |
|
income |
|
additions |
Body Exteriors & Structures |
|
$ |
4,393 |
|
$ |
4,314 |
|
$ |
543 |
|
$ |
190 |
|
$ |
(1) |
|
$ |
296 |
Power & Vision |
|
|
3,179 |
|
|
3,126 |
|
|
359 |
|
|
124 |
|
|
(80) |
|
|
198 |
Seating Systems |
|
|
1,390 |
|
|
1,383 |
|
|
85 |
|
|
20 |
|
|
(5) |
|
|
38 |
Complete Vehicles |
|
|
1,759 |
|
|
1,743 |
|
|
110 |
|
|
23 |
|
|
(3) |
|
|
15 |
Corporate & Other
[i] |
|
|
(153) |
|
|
2 |
|
|
(2) |
|
|
5 |
|
|
(1) |
|
|
13 |
Total
Reportable Segments |
|
$ |
10,568 |
|
$ |
10,568 |
|
$ |
1,095 |
|
$ |
362 |
|
$ |
(90) |
|
$ |
560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, 2019 |
|
|
|
|
|
|
|
|
Depreciation |
|
Equity |
|
Fixed |
|
|
Total |
|
External |
|
Adjusted |
|
and |
|
(income) |
|
asset |
|
|
sales |
|
sales |
|
EBIT [ii] |
|
amortization |
|
loss |
|
additions |
Body Exteriors & Structures |
|
$ |
3,923 |
|
$ |
3,849 |
|
$ |
289 |
|
$ |
180 |
|
$ |
(1) |
|
$ |
263 |
Power & Vision |
|
|
2,725 |
|
|
2,678 |
|
|
163 |
|
|
128 |
|
|
(55) |
|
|
203 |
Seating Systems |
|
|
1,426 |
|
|
1,420 |
|
|
79 |
|
|
18 |
|
|
(5) |
|
|
31 |
Complete Vehicles |
|
|
1,461 |
|
|
1,444 |
|
|
44 |
|
|
24 |
|
|
(1) |
|
|
15 |
Corporate & Other
[i] |
|
|
(140) |
|
|
4 |
|
|
15 |
|
|
5 |
|
|
4 |
|
|
1 |
Total Reportable
Segments |
|
$ |
9,395 |
|
$ |
9,395 |
|
$ |
590 |
|
$ |
355 |
|
$ |
(58) |
|
$ |
513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2020
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
Fixed |
|
|
Total |
|
External |
|
Adjusted |
|
and |
|
Equity |
|
asset |
|
|
sales |
|
sales |
|
EBIT [ii] |
|
amortization |
|
income |
|
additions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Body Exteriors & Structures |
|
$ |
13,550 |
|
$ |
13,292 |
|
$ |
817 |
|
$ |
727 |
|
$ |
— |
|
$ |
581 |
Power & Vision |
|
|
9,722 |
|
|
9,553 |
|
|
495 |
|
|
464 |
|
|
(179) |
|
|
440 |
Seating Systems |
|
|
4,455 |
|
|
4,433 |
|
|
107 |
|
|
73 |
|
|
(6) |
|
|
70 |
Complete Vehicles |
|
|
5,415 |
|
|
5,363 |
|
|
274 |
|
|
84 |
|
|
(3) |
|
|
34 |
Corporate & Other
[i] |
|
|
(495) |
|
|
6 |
|
|
(17) |
|
|
18 |
|
|
(1) |
|
|
20 |
Total
Reportable Segments |
|
$ |
32,647 |
|
$ |
32,647 |
|
$ |
1,676 |
|
$ |
1,366 |
|
$ |
(189) |
|
$ |
1,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2019
|
|
|
|
|
|
|
|
|
Depreciation |
|
Equity |
|
Fixed |
|
|
Total |
|
External |
|
Adjusted |
|
and |
|
(income) |
|
asset |
|
|
sales |
|
sales |
|
EBIT [ii] |
|
amortization |
|
loss |
|
additions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Body Exteriors & Structures |
|
$ |
16,458 |
|
$ |
16,110 |
|
$ |
1,299 |
|
$ |
710 |
|
$ |
(3) |
|
$ |
713 |
Power & Vision |
|
|
11,312 |
|
|
11,103 |
|
|
747 |
|
|
464 |
|
|
(174) |
|
|
577 |
Seating Systems |
|
|
5,577 |
|
|
5,548 |
|
|
312 |
|
|
66 |
|
|
(4) |
|
|
76 |
Complete Vehicles |
|
|
6,707 |
|
|
6,661 |
|
|
144 |
|
|
84 |
|
|
(1) |
|
|
69 |
Corporate & Other
[i] |
|
|
(623) |
|
|
9 |
|
|
43 |
|
|
21 |
|
|
4 |
|
|
6 |
Total Reportable
Segments |
|
$ |
39,431 |
|
$ |
39,431 |
|
$ |
2,545 |
|
$ |
1,345 |
|
$ |
(178) |
|
$ |
1,441 |
[i] |
Included in Corporate and Other Adjusted EBIT are intercompany fees
charged to the automotive segments. |
|
|
[ii] |
For a
definition and reconciliation of Adjusted EBIT, refer to our
Non-GAAP financial measures reconciliation included in the
“Supplemental Data” section of this Press Release. |
|
|
MAGNA INTERNATIONAL INC. |
SUPPLEMENTAL DATA |
[Unaudited] |
[All amounts in U.S. dollars and all tabular amounts in millions
unless otherwise noted] |
Non-GAAP Financial Measures
In addition to the financial results reported in
accordance with U.S. GAAP, this press release contains references
to the Non-GAAP financial measures reconciled below. We believe the
Non-GAAP financial measures used in this press release are useful
to both management and investors in their analysis of the Company’s
financial position and results of operations, and to improve
comparability between fiscal periods. In particular, management
believes that Adjusted EBIT and Adjusted diluted earnings per
share, are useful measures in assessing the Company’s financial
performance by excluding certain items that are not indicative of
the Company's core operating performance. The presentation of
Non-GAAP financial measures should not be considered in isolation,
or as a substitute for the Company’s related financial results
prepared in accordance with U.S. GAAP.
The following table
reconciles Net income to Adjusted EBIT: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Year
ended |
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
750 |
|
$ |
445 |
|
$ |
677 |
|
$ |
1,632 |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
22 |
|
|
19 |
|
|
86 |
|
|
82 |
Other expense (income), net |
|
|
100 |
|
|
(8) |
|
|
584 |
|
|
240 |
Income taxes |
|
|
223 |
|
|
134 |
|
|
329 |
|
|
591 |
Adjusted
EBIT |
|
$ |
1,095 |
|
$ |
590 |
|
$ |
1,676 |
|
$ |
2,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles Net income
attributable to Magna International Inc. to Adjusted diluted
earnings per share: |
|
|
|
Three months
ended |
|
Year
ended |
|
|
December 31, |
|
December 31, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Magna International
Inc. |
|
$ |
738 |
|
$ |
440 |
|
$ |
757 |
|
$ |
1,765 |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
Other expense (income), net |
|
|
100 |
|
|
(8) |
|
|
584 |
|
|
240 |
Tax effect on Other expense (income), net |
|
|
13 |
|
|
1 |
|
|
(80) |
|
|
33 |
Loss attributable to non-controlling interests related
to Other expense (income), net |
|
|
— |
|
|
— |
|
|
(75) |
|
|
(127) |
Adjusted net income attributable to Magna International
Inc. |
|
$ |
851 |
|
$ |
433 |
|
$ |
1,186 |
|
$ |
1,911 |
Diluted weighted
average number of Common Shares outstanding during
the period (millions): |
|
|
300.9 |
|
|
306.3 |
|
|
300.4 |
|
|
315.8 |
Adjusted
diluted earnings per share |
|
$ |
2.83 |
|
$ |
1.41 |
|
$ |
3.95 |
|
$ |
6.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain of the forward-looking financial
measures above are provided on a Non-GAAP basis. We do not provide
a reconciliation of such forward-looking measures to the most
directly comparable financial measures calculated and presented in
accordance with U.S. GAAP. To do so would be potentially misleading
and not practical given the difficulty of projecting items that are
not reflective of on-going operations in any future period. The
magnitude of these items, however, may be significant.
This press release together with our
Management’s Discussion and Analysis of Results of Operations and
Financial Position and our Interim Financial Statements are
available in the Investor Relations section of our website at
www.magna.com/company/investors and filed electronically through
the System for Electronic Document Analysis and Retrieval (SEDAR)
which can be accessed at www.sedar.com as well as on the United
States Securities and Exchange Commission’s Electronic Data
Gathering, Analysis and Retrieval System (EDGAR), which can be
accessed at www.sec.gov.
We will hold a conference call for interested
analysts and shareholders to discuss our fourth quarter and year
ended December 31, 2020 results on Friday, February 19, 2021 at
8:00 a.m. ET. The conference call will be chaired by Swamy
Kotagiri, Chief Executive Officer. The number to use for this call
from North America is 1-800-735-5968. International callers should
use 1-416-981-9038. Please call in at least 10 minutes prior to the
call start time. We will also webcast the conference call at
www.magna.com. The slide presentation accompanying the conference
call as well as our financial review summary will be available on
our website Friday prior to the call.
TAGSQuarterly earnings, financial results,
vehicle production
INVESTOR CONTACTLouis Tonelli, Vice-President,
Investor Relations louis.tonelli@magna.com │ 905.726.7035
MEDIA CONTACT Tracy Fuerst, Vice-President,
Corporate Communications & PR tracy.fuerst@magna.com │
248.631.5396
WEBCAST CONTACTNancy Hansford, Executive Assistant, Investor
Relations nancy.hansford@magna.com │ 905.726.7108
OUR BUSINESS (1)We are a mobility technology
company. We have over 158,000 entrepreneurial-minded employees, 342
manufacturing operations and 91 product development, engineering
and sales centres in 27 countries. We have complete vehicle
engineering and contract manufacturing expertise, as well as
product capabilities that include body, chassis, exteriors,
seating, powertrain, active driver assistance, electronics,
mechatronics, mirrors, lighting and roof systems. Our common shares
trade on the Toronto Stock Exchange (MG) and the New York Stock
Exchange (MGA).
(1) Manufacturing operations, product
development, engineering and sales centres and employee figures
include certain equity-accounted operations.FORWARD-LOOKING
STATEMENTS
Certain statements in this press release
constitute "forward-looking information" or "forward-looking
statements" (collectively, "forward-looking statements"). Any such
forward-looking statements are intended to provide information
about management's current expectations and plans and may not be
appropriate for other purposes. Forward-looking statements may
include financial and other projections, as well as statements
regarding our future plans, strategic objectives or economic
performance, or the assumptions underlying any of the foregoing,
and other statements that are not recitations of historical fact.
We use words such as "may", "would", "could", "should", "will",
"likely", "expect", "anticipate", "believe", "intend", "plan",
"aim", "forecast", "outlook", "project", "estimate", "target" and
similar expressions suggesting future outcomes or events to
identify forward-looking statements. The following table identifies
the material forward-looking statements contained in this document,
together with the material potential risks that we currently
believe could cause actual results to differ materially from such
forward-looking statements. Readers should also consider all of the
risk factors which follow below the table:
Material Forward-Looking Statement |
Material Potential Risks Related to Applicable
Forward-Looking Statement |
Total SalesSegment Sales |
- Mandatory stay-at-home orders to
help contain COVID-19 spread could impact vehicle sales, vehicle
production and our own production
- Economic impact of COVID-19 on
consumer confidence
- Supply disruptions, including as a
result of a semiconductor chip shortage currently being experienced
in the industry and constriction in the supply of certain types of
steel
- Concentration of sales with six
customers
- Shifts in market shares among
vehicles or vehicle segments
- Shifts in consumer “take rates” for
products we sell
|
Adjusted EBIT MarginNet Income Attributable to Magna |
- Same risks as for Total Sales and
Segment Sales above
- Operational underperformance
- Higher costs incurred to mitigate
the risk of supply disruptions, including overtime, premium freight
and expenses related to switching sub-suppliers
- Price concessions
- Tax risks
|
Equity Income |
- Same risks as Adjusted EBIT Margin
and Net Income Attributable to Magna
- Risks related to conducting
business through joint ventures
|
Forward-looking statements are based on
information currently available to us and are based on assumptions
and analyses made by us in light of our experience and our
perception of historical trends, current conditions and expected
future developments, as well as other factors we believe are
appropriate in the circumstances. While we believe we have a
reasonable basis for making any such forward-looking statements,
they are not a guarantee of future performance or outcomes. In
addition to the factors in the table above, whether actual results
and developments conform to our expectations and predictions is
subject to a number of risks, assumptions and uncertainties, many
of which are beyond our control, and the effects of which can be
difficult to predict, including, without limitation:
Risks Related to the Automotive Industry
- economic cyclicality;
- regional production volume declines, including as a result of
the COVID-19 (Coronavirus) pandemic;
- intense competition;
- potential restrictions on free trade;
- trade disputes/tariffs;
Customer and Supplier Related Risks
- concentration of sales with six customers;
- emergence of potentially disruptive Electric Vehicle (EV)
OEMs;
- OEM consolidation and cooperation;
- shifts in market shares among vehicles or vehicle
segments;
- shifts in consumer "take rates" for products we sell;
- quarterly sales fluctuations;
- potential loss of any material purchase orders;
- a deterioration in the financial condition of our supply base,
including as a result of the COVID-19 (Coronavirus) pandemic;
Manufacturing Operational Risks
- product and new facility launch risks;
- operational underperformance;
- restructuring costs;
- impairment charges;
- labour disruptions;
- COVID-19 (Coronavirus) shutdowns;
- supply disruptions, including as a result of the COVID-19
(Coronavirus) pandemic;
- climate change risks;
- attraction/retention of skilled labour;
IT Security/Cybersecurity Risk
- IT/Cybersecurity breach;
- Product Cybersecurity breach;
Pricing Risks
- pricing risks between time of quote and start of
production;
- price concessions;
- commodity costs;
- declines in scrap steel/aluminum prices;
|
Warranty / Recall Risks
- costs related to repair or replacement of defective products,
including due to a recall;
- warranty or recall costs that exceed warranty provision or
insurance coverage limits;
- product liability claims;
Acquisition Risks
- inherent merger and acquisition risks;
- acquisition integration risk;
Other Business Risks
- risks related to conducting business through joint
ventures;
- our ability to consistently develop and commercialize
innovative products or processes;
- our changing business risk profile as a result of increased
investment in electrification and autonomous driving, including:
higher R&D and engineering costs, and challenges in quoting for
profitable returns on products for which we may not have
significant quoting experience;
- risks of conducting business in foreign markets;
- fluctuations in relative currency values;
- tax risks;
- reduced financial flexibility as a result of an economic
shock;
- changes in credit ratings assigned to us;
Legal, Regulatory and Other Risks
- antitrust risk;
- legal claims and/or regulatory actions against us; and
- changes in laws and regulations, including those related to
vehicle emissions.
|
In evaluating forward-looking statements
or forward-looking information, we caution readers not to place
undue reliance on any forward-looking statement. Additionally,
readers should specifically consider the various factors which
could cause actual events or results to differ materially from
those indicated by such forward-looking statements, including the
risks, assumptions and uncertainties above which are:
- discussed under the “Industry Trends and Risks” heading
of our Management’s Discussion and Analysis; and
- set out in our Annual Information Form filed with
securities commissions in Canada, our annual report on Form 40-F
filed with the United States Securities and Exchange Commission,
and subsequent filings.
Readers should also consider discussion
of our risk mitigation activities with respect to certain risk
factors, which can be also found in our Annual Information
Form.
Magna (NYSE:MGA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Magna (NYSE:MGA)
Historical Stock Chart
From Apr 2023 to Apr 2024