AURORA, Ontario, May 10, 2013 /PRNewswire/ --
Magna International Inc. (TSX: MG; NYSE: MGA) today
reported financial results for the first quarter ended March
31, 2013.
THREE MONTHS ENDED
March 31, 2013 March 31, 2012
Sales $ 8,361 $ 7,666
Adjusted EBIT(1) $ 467 $ 444
Income from operations before income
taxes $ 457 $ 439
Net income attributable to Magna
International Inc. $ 369 $ 343
Diluted earnings per share $ 1.57 $ 1.46
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, net; and other expense, net.
THREE MONTHS ENDED MARCH 31,
2013
We posted sales of $8.36 billion
for the first quarter ended March 31,
2013, an increase of 9% over the first quarter of 2012. We
achieved this sales increase in a period when vehicle production
increased 1% in North America and
decreased 9% in Europe, each
relative to the first quarter of 2012. Our North American,
European and Rest of World production sales, as well as tooling,
engineering and other sales all increased in the first quarter of
2013 relative to the comparable quarter in 2012.
Complete vehicle assembly sales increased 33% to $798 million for the first quarter of 2013
compared to $599 million for the first quarter of 2012, while
complete vehicle assembly volumes increased 25% to approximately
37,000 units.
During the first quarter of 2013, income from operations before
income taxes was $457 million, net
income attributable to Magna International Inc. was $369 million and diluted earnings per share were
$1.57, increases of $18 million, $26
million and $0.11,
respectively, each compared to the first quarter of 2012.
During the first quarter ended March 31,
2013, we generated cash from operations of $607 million before changes in non-cash operating
assets and liabilities, and invested $456
million in non-cash operating assets and liabilities. Total
investment activities for the first quarter of 2013 were
$242 million, including
$194 million in fixed asset additions and $48 million in investments and other assets.
A more detailed discussion of our consolidated financial results
for the first quarter ended March 31,
2013 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 March 31, 2013. This dividend is payable on
June 17, 2013 to shareholders of
record on May 31, 2013.
UPDATED 2013 OUTLOOK
Light Vehicle Production
(Units)
North America 15.9 million
Europe(1) 18.4 million
Production Sales $15.7 - $16.1 billion
North America $9.3 - $9.6 billion
Europe
Rest of World $2.2 - $2.5 billion
Total Production Sales $27.2 - $28.2 billion
Complete Vehicle Assembly $2.8 - $3.1 billion
Sales
Total Sales $32.6 - $34.0 billion
Operating Margin(2)(3) Mid to high 5% range
Tax Rate(2) Approximately 24%
Capital Spending Approximately $1.4 billion
(1) Beginning in the first quarter of 2013, we disclose total European
light vehicle production rather than Western European light vehicle
production
(2) Excluding other expense, net
(3) 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 315
manufacturing operations and 87 product development, engineering
and sales centres in 29 countries. Our 121,000 employees are
focused on delivering superior value to our customers through
innovative processes and World Class Manufacturing. Our product
capabilities include producing body, chassis, interior, exterior,
seating, powertrain, electronic, vision, closure 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 first quarter results on Friday, May 10, 2013 at 2:00 p.m. EDT. The conference call will be
chaired by Don Walker, Chief
Executive Officer. The number to use for this call is
1-800-728-2056. The number for overseas callers is
1-416-641-6705. 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 afternoon 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 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, and/or restructuring actions; 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
athttp://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
athttp://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.