AURORA, Ontario, January 16, 2013 /PRNewswire/ --
Magna International Inc. (TSX: MG), (NYSE: MGA) today
announced its financial outlook for 2013. All amounts are in
U.S. dollars.
Don Walker, Magna's Chief
Executive Officer commented: "Our outlook reflects the progress we
are making in expanding Magna's business outside of our traditional
markets. Our growing footprint in high growth markets,
combined with our strong positions in North America and Europe, further enhances our ability to
support our customers on global platforms. In Europe, our
recent focus has been on improving operations and bottom-line
results. We have made progress and continue to implement
restructuring actions that we believe should contribute over time
to further improvement in our future European financial
results."
2013 OUTLOOK
Light Vehicle Production (Units)
North America 15.3 million
Western Europe 12.0 million
Production Sales
North America $15.3 billion - $15.7 billion
Europe $9.0 billion - $9.3 billion
Rest of World $2.2 billion - $2.5 billion
Total Production Sales $26.5 billion - $27.5 billion
Complete Vehicle Assembly Sales $2.5 billion - $2.8 billion
Total Sales $31.3 billion - $32.7 billion
Operating Margin(*)(**) Mid 5% range
Tax Rate* Approximately 24.5%
Capital Spending Approximately $1.4 billion
* Excluding other expense/income, net (unusual items)
** Excluding $158 million amortization of intangibles related to acquisition of E-Car
In addition to our 2013 sales outlook above, we expect an
increase in total production sales over the two-year period from
2013 to 2015 of approximately $2.2
billion, based on assumed full year 2015 light vehicle
production volumes of approximately 16.7 million units in
North America and approximately
12.8 million units in Western Europe. We expect the increase
in total production sales to be split approximately as follows by
segment: 70% in North America and
40% in Rest of World, offset by a 10% decline in Europe.
In this outlook 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 2012 rates.
REGULATORY UPDATE
Magna also announced that the previously disclosed investigation
by the United States Department of Justice ("DoJ") into certain
practices relating to the Company's tooling sales has been
concluded without any action being taken by the DoJ.
ABOUT MAGNA
We are a leading global automotive supplier with 313 manufacturing
operations and 88 product development, engineering and sales
centres in 29 countries. Our over 118,000 employees are focused on
delivering superior value to our customers through innovative
processes built on World Class Manufacturing processes. Our
product capabilities include body, chassis, interiors, exteriors,
seating, powertrain, electronics, mirrors, closures and roof
systems and modules, as well as complete vehicle engineering and
contract manufacturing. Our common shares trade on the
Toronto Stock Exchange (MG) and the New York Stock Exchange (MGA).
For further information about Magna, visit our website at
http://www.magna.com.
FORWARD LOOKING STATEMENTS
This press release may contain statements that, to the extent that
they are not recitations of historical fact, constitute
"forward-looking information" or "forward-looking statements"
within the meaning of applicable securities legislation, including,
but not limited to, Magna's: forecasts 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, including
for years beyond 2013; complete vehicle assembly sales;
consolidated operating margin; effective income tax rate; fixed
asset expenditures; implementation of action plans and operating
results improvement in Europe;
growth of our business outside of traditional markets and expansion
in high growth regions . Forward-looking statements may include
financial and other projections, as well as statements regarding
our future plans, objectives or economic performance, or the
assumptions underlying any of the foregoing. 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 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. These risks, assumptions and uncertainties include,
without limitation, the impact of: the potential for a
deterioration of economic conditions or an extended period of
economic uncertainty; declines in consumer confidence and the
impact on production volume levels; risks arising from uncertain
economic conditions in Europe,
including the potential for a deterioration of sales of our three
largest German-based OEM customers; restructuring actions by OEMs,
including plant closures; restructuring, downsizing and/or other
significant non-recurring costs; continued underperformance of one
or more of our operating divisions; our ability to successfully
launch material new or takeover business; liquidity risks; risks
arising due to the failure of a major financial institution;
bankruptcy or insolvency of a major customer or supplier; a
prolonged disruption in the supply of components to us from our
suppliers; scheduled production shutdowns of our customers'
production facilities (typically in the third and fourth quarters
of each calendar year); shutdown of our or our customers' or
sub-suppliers' production facilities due to a labour disruption;
our ability to successfully compete with other automotive
suppliers; a reduction in outsourcing by our customers or the loss
of a material production or assembly program; the termination or
non-renewal by our customers of any material production purchase
order; a shift away from technologies in which we are investing;
impairment charges related to goodwill, long-lived assets and
deferred tax assets; shifts in market share away from our top
customers; shifts in market shares among vehicles or vehicle
segments, or shifts away from vehicles on which we have significant
content; risks of conducting business in foreign markets, including
China, India, Brazil, Russia and other non-traditional markets for
us; exposure to, and ability to offset, volatile commodities
prices; fluctuations in relative currency values; our ability to
successfully identify, complete and integrate acquisitions or
achieve anticipated synergies; ongoing pricing pressures, including
our ability to offset price concessions demanded by our customers;
warranty and recall costs; our ability to understand and compete
successfully in non-automotive businesses in which we pursue
opportunities; risks related to natural disasters and potential
production disruptions; factors that could cause an increase in our
pension funding obligations; 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; legal claims and/or regulatory actions against us;
the unpredictability of, and fluctuation in, the trading price of
our Common Shares; work stoppages and labour relations disputes;
changes in credit ratings assigned to us; changes in laws and
governmental regulations; costs associated with compliance with
environmental laws and regulations; risks related to the electric
vehicle industry; 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 forward-looking statements,
we caution readers not to place undue reliance on any
forward-looking statements and 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. 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 to
reflect subsequent information, events, results or circumstances or
otherwise.
For further information: 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.