AURORA, Ontario, March 1, 2013 /PRNewswire/ --
Magna International Inc. (TSX: MG) (NYSE: MGA) today
reported financial results for the fourth quarter and year ended
December 31, 2012.
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
2012 2011 2012 2011
Sales $ 8,033 $ 7,251 $ 30,837 $ 28,748
Adjusted EBIT(1) $ 387 $ 321 $ 1,658 $ 1,367
Income from operations
before income taxes $ 341 $ 291 $ 1,750 $ 1,217
Net income attributable
to Magna
International Inc. $ 351 $ 312 $ 1,433 $ 1,018
Diluted earnings per
share $ 1.49 $ 1.32 $ 6.09 $ 4.20
All results are reported in millions of U.S. dollars, except
per share figures, which are in U.S. dollars.
(1) Adjusted EBIT is the measure of segment profit or loss as
reported in the Company's attached unaudited interim
consolidated financial statements.
Adjusted EBIT represents income from operations before income
taxes; interest expense (income), net; and other expense
(income), net
THREE MONTHS ENDED DECEMBER 31,
2012
We posted sales of $8.03 billion
for the fourth quarter ended December 31,
2012, an increase of 11% over the fourth quarter of 2011. We
achieved this sales increase in a period when vehicle production
increased 12% in North America and
declined 8% in Western Europe,
both relative to the fourth quarter of 2011. In the fourth quarter
of 2012, our North American, Europe, and Rest of World production sales, as
well as tooling, engineering and other sales and complete vehicle
assembly sales all increased relative to the comparable quarter in
2011.
Complete vehicle assembly sales increased 12% to $697 million for the fourth quarter of 2012
compared to $625 million for the fourth quarter of 2011, while
complete vehicle assembly volumes increased 5% to approximately
31,500 units.
For the fourth quarter of 2012, adjusted EBIT increased 21% to
$387 million compared to $321 million for the fourth quarter of 2011.
For the fourth quarter of 2012, income from operations before
income taxes was $341 million, net
income attributable to Magna International Inc. was $351 million and diluted earnings per share were
$1.49, increases of $50 million, $39
million and $0.17,
respectively, each compared to the fourth quarter of 2011.
Excluding other expense (income), net, and the income tax
valuation allowance releases recorded in the fourth quarters of
2012 and 2011, income from operations before income taxes, net
income attributable to Magna International Inc. and diluted
earnings per share increased $62
million, $37 million and
$0.16, respectively, each compared to
the fourth quarter of 2011.
For the fourth quarter ended December 31,
2012, we generated cash from operations of $514 million before changes in non-cash operating
assets and liabilities, and $559
million in non-cash operating assets and liabilities. Total
investment activities for the fourth quarter of 2012 were
$949 million, including
$478 million in fixed asset additions, $446 million to purchase subsidiaries and
$25 million in investments and other
assets.
YEAR ENDED DECEMBER 31,
2012
We posted sales of $30.84 billion
for the year ended December 31, 2012,
an increase of 7% over the year ended December 31, 2011. This higher sales level
reflected increases in our North American, European, and Rest of
World production sales as well as higher tooling, engineering and
other sales, partially offset by lower complete vehicle assembly
sales.
For the year ended December 31,
2012, vehicle production increased 18% to 15.5 million units
in North America and decreased 7%
to 12.7 million units in Western
Europe, each compared to 2011.
Complete vehicle assembly sales decreased 5% to $2.56 billion for the year ended December 31, 2012 compared to $2.69 billion for the year ended December 31, 2011, while complete vehicle
assembly volumes decreased 5% to approximately 124,000 units.
For the year ended December 31,
2012, adjusted EBIT increased 21% to $1.66 billion compared to $1.37 billion for the year ended December 31, 2011.
For the year ended December 31,
2012, income from operations before income taxes was
$1.75 billion, net income
attributable to Magna International Inc. was $1.43 billion and diluted earnings per share were
$6.09, increases of $533 million, $415
million and $1.89,
respectively, each compared to 2011.
Excluding other expense (income), net, and the income tax
valuation allowance releases recorded in 2012 and 2011, income from
operations before income taxes, net income attributable to Magna
International Inc. and diluted earnings per share increased
$269 million, $165 million and $0.83, respectively, each compared to 2011.
For the year ended December 31,
2012, we generated cash from operations before changes in
non-cash operating assets and liabilities of $2.13 billion, and $72
million in non-cash operating assets and liabilities. Total
investment activities for the year of 2012 were $1.92 billion, including $1.27 billion in fixed asset additions,
$525 million to purchase subsidiaries
and a $122 million increase in
investments and other assets.
Don Walker, Magna's Chief
Executive Officer, commented: "Overall, we are satisfied with our
operating results for 2012. We continued our strong
performance in North America. In Europe, we saw better
operating results and a return to profitability. In the rest of the
world, Asia remains profitable,
despite the significant new facility activity, and we are taking
steps to improve results in South
America."
A more detailed discussion of our consolidated financial results
for the fourth quarter and year ended December 31, 2012 is contained in the
Management's Discussion and Analysis of Results of Operations and
Financial Position and the unaudited interim consolidated financial
statements and notes thereto, which are attached to this Press
Release.
DIVIDENDS
Yesterday, our Board of Directors declared a quarterly dividend
of $0.32 with respect to our
outstanding Common Shares for the quarter ended December 31, 2012. This dividend is payable on
March 27, 2013 to shareholders of
record on March 13, 2013.
Vince Galifi, Magna's Chief
Financial Officer, stated: "The 16% increase in our quarterly
dividend per share to $0.32, which is
a new record for us, reflects our continued strong performance and
the confidence our Board has in Magna's future."
UPDATED 2013 OUTLOOK
Light Vehicle Production
(Units)
North America 15.8 million
Western Europe 11.9 million
Production Sales
North America $15.4 billion - $15.8 billion
Europe $9.4 billion - $9.7 billion
Rest of World $2.2 billion - $2.5 billion
Total Production Sales $27.0 billion - $28.0 billion
Complete Vehicle Assembly $2.6 billion - $2.9 billion
Sales
Total Sales $32.0 billion - $33.4 billion
Operating Margin*+ Mid 5% range
Tax Rate* Approximately 24.5%
Capital Spending Approximately $1.4 billion
* Excluding other expense (income), net
+ Excluding $158 million amortization of intangibles related to acquisition of E-Car
In this 2013 outlook, in addition to 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
current rates.
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 119,000 employees are
focused on delivering superior value to our customers through
innovative processes and World Class Manufacturing. Our product
capabilities include producing 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.
We will hold a conference call for interested analysts and
shareholders to discuss our fourth quarter and year end 2012
results on Friday, March 1, 2013 at
8:00 a.m. EST. The conference call
will be chaired by Donald J. Walker,
Chief Executive Officer. The number to use for this call is
1-800-699-3428. The number for overseas callers is 1-416-641-6715.
Please call in at least 10 minutes prior to the call. We will also
webcast the conference call
at http://www.magna.com. The slide presentation
accompanying the conference call will be available on our website
Friday morning prior to the call.
FORWARD-LOOKING STATEMENTS
The previous discussion contains statements that constitute
"forward-looking statements" or "forward-looking information"
within the meaning of applicable securities legislation, including,
but not limited to, statements relating to Magna's expected
production sales, based on expected light vehicle production in
North America and Western Europe; Magna's expected production
sales in the North America,
Europe and Rest of World segments;
total sales; complete vehicle assembly sales; consolidated
operating margin; effective income tax rate; fixed asset
expenditures; implementation of improvement plans in our
underperforming operations, including South America; and future purchases of our
Common Shares under the Normal Course Issuer Bid. The
forward-looking information in this document is presented for the
purpose of providing information about management's current
expectations and plans and such information may not be appropriate
for other purposes. 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, 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: 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 the
recession in Europe, including the
potential for a deterioration of sales of our three largest
German-based OEM customers; inability to sustain or grow our
business with OEMs; 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; bankruptcy or
insolvency of a major customer or supplier; a prolonged disruption
in the supply of components to us from our suppliers; scheduled
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; risks arising due to the failure of a major
financial institution; 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, South America 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; our ability to
conduct appropriate due diligence on acquisition targets; ongoing
pricing pressures, including our ability to offset price
concessions demanded by our customers; warranty and recall costs;
risks related to natural disasters and potential production
disruptions; factors that could cause an increase in our pension
funding obligations; legal claims and/or regulatory actions against
us; our ability to understand and compete successfully in
non-automotive businesses in which we pursue opportunities; 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; inability to
achieve future investment returns that equal or exceed past
returns; 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; 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 about Magna, please see our website
at http://www.magna.com. Copies of financial data and
other publicly filed documents are available through the internet
on the Canadian Securities Administrators' System for Electronic
Document Analysis and Retrieval (SEDAR) which can be accessed
at http://www.sedar.com and on the United States
Securities and Exchange Commission's Electronic Data Gathering,
Analysis and Retrieval System (EDGAR) which can be accessed
at http://www.sec.gov
For further information, please contact Louis Tonelli, Vice-President, Investor
Relations at +1-905-726-7035.
For teleconferencing questions, please
contact Karin Kaminski at
+1-905-726-7103.
(MG. MGA)