AURORA, Canada, January 12, 2011 /PRNewswire/ -- Don Walker, Magna's Chief Executive Officer
commented: "As 2011 begins, vehicle production is poised for future
growth in a number of important markets for us, including
North America. Accordingly, our
outlook reflects significant sales growth, including expansion in
high-growth markets in the next few years. We also have the balance
sheet, cash flow generation, engineering and manufacturing
footprints, technologies and motivated workforce to support our
growth initiatives around the world. These factors combined leave
us confident about Magna's future."
For the full year 2011, we expect consolidated total sales to be
between $25.6 billion and $27.1
billion, and expect consolidated production sales to be
between $21.7 billion and $22.7
billion, based on full year 2011 light vehicle production
volumes of approximately 12.9 million units in North America and approximately 13.3 million
units in Western Europe. We expect
full year 2011 production sales to be between $12.7 billion and $13.2 billion in North America, between $7.8 billion and $8.1 billion in Europe and between $1.2
billion and $1.4 billion in Rest of World. We expect full
year 2011 complete vehicle assembly sales to be between
$2.4 billion and $2.7 billion. We
expect our 2011 effective income tax rate to be approximately
20%.
In addition, we expect that our full year 2011 spending for
fixed assets will be between $900 million
and $1.0 billion. This amount reflects continuing investment
to support new and replacement business in our traditional markets
as well as investment to expand in a number of high-growth
markets.
Finally, in addition to our 2011 sales outlook above, we expect
a net increase in total production sales over the two-year period
from 2011 to 2013 of approximately $3
billion, based on assumed full year 2013 light vehicle
production volumes of approximately 14.8 million units in
North America and approximately
14.1 million units in Western
Europe. We expect the net increase in total production sales
to be split approximately equally among our North America, Europe and Rest of World segments.
In this 2011 outlook, in addition to 2011 and 2013 light vehicle
production, we have assumed no material acquisitions or
divestitures. In addition, we have assumed that foreign exchange
rates for the most common currencies in which we conduct business
relative to our U.S. dollar reporting currency will approximate
year end 2010 rates.
GOVERNANCE
In connection with an ongoing review of our system of corporate
governance following the elimination of our dual class share
structure effective August 31, 2010,
our Board today approved the adoption of a majority voting policy
which will take effect commencing in respect of our 2012 annual
meeting.
ABOUT MAGNA
We are the most diversified global automotive supplier. We
design, develop and manufacture technologically advanced systems,
assemblies, modules and components, and engineer and assemble
complete vehicles, primarily for sale to original equipment
manufacturers ("OEMs") of cars and light trucks. Our capabilities
include the design, engineering, testing and manufacture of
automotive interior systems; seating systems; closure systems; body
and chassis systems; vision systems; electronic systems; exterior
systems; powertrain systems; roof systems; hybrid and electric
vehicles/systems as well as complete vehicle engineering and
assembly.
We have over 92,000 employees in 248 manufacturing operations
and 81 product development, engineering and sales centres in 25
countries.
FORWARD LOOKING STATEMENTS
This Press Release contains statements that constitute
"forward-looking statements" within the meaning of applicable
securities legislation, including, but not limited to, statements
relating to Magna's: forecast of light vehicle production in
North America and Western Europe; expected consolidated sales,
based on such light vehicle production volumes; production sales in
its North America, Europe and Rest of World segments; complete
vehicle assembly sales; fixed asset expenditures; and average
income tax rate. The forward-looking information in this Press
Release is presented for the purpose of providing information about
Magna's current expectations, plans and 2011-2013 outlook, and such
information may not be appropriate for other purposes.
Forward-looking statements may also include statements regarding
our future plans, 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", "forecast", "outlook",
"project", "estimate" and similar expressions suggesting future
outcomes or events to identify forward-looking statements. Any such
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. However, whether actual results and developments
will conform with 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, assumptions and
uncertainties related to: the potential for a slower than
anticipated economic recovery or a deterioration of economic
conditions; production volumes and sales levels which are below
forecast levels; our dependence on outsourcing by our customers;
the termination or non renewal by our customers of any material
contracts; our ability to identify and successfully exploit shifts
in technology; our ability to successfully grow our sales to
non-traditional customers; unfavourable product or customer mix;
risks of conducting business in foreign countries, including
China, India, Brazil, Russia and other developing markets; our
ability to quickly shift our manufacturing footprint to take
advantage of lower cost manufacturing opportunities; disruptions in
the capital and credit markets; fluctuations in relative currency
values; our ability to successfully identify, complete and
integrate acquisitions; the highly competitive nature of the
automotive parts supply business; changes in our mix of earnings
between jurisdictions with lower tax rates and those with higher
tax rates, as well as our ability to fully benefit tax losses;
other potential tax exposures; changes in laws and governmental
regulations; and other factors set out in our Annual Information
Form filed with securities commissions in Canada and our Annual Report on Form 40-F
filed with the United States Securities and Exchange Commission,
and subsequent filings. In evaluating any forward-looking
statements in this Press Release, we caution readers not to place
undue reliance on any forward-looking statements. Readers should
specifically consider the various factors which could cause actual
events or results to differ materially from those indicated by our
forward-looking statements. Unless otherwise required by applicable
securities laws, we do not intend, nor do we undertake any
obligation, to update or revise any forward-looking statements
contained in this Press Release to reflect subsequent information,
events, results or circumstances or otherwise.
For further information: please contact Vince Galifi, Executive Vice-President and Chief
Financial Officer at +1-905-726-7100 or Louis Tonelli, Vice-President, Investor
Relations at +1-905-726-7035.