AURORA, Ontario, August 9, 2013 /PRNewswire/ --
Magna International Inc. (TSX: MG; NYSE: MGA) today
reported financial results for the second quarter ended June
30, 2013.
THREE MONTHS SIX MONTHS ENDED
ENDED JUNE 30, JUNE 30,
2013 2012 2013 2012
Sales $ 8,962 $ 7,727 $ 17,323 $ 15,393
Adjusted EBIT (1) $ 547 $ 475 $ 1,014 $ 919
Income from operations
before income taxes $ 543 $ 470 $ 1,000 $ 909
Net income attributable to
Magna International Inc. $ 415 $ 349 $ 784 $ 692
Diluted earnings per share $ 1.78 $ 1.48 $ 3.35 $ 2.94
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 JUNE 30,
2013
We posted record sales of $8.96
billion for the second quarter ended June 30, 2013, an increase of 16% from the second
quarter of 2012. We achieved this sales increase in a period when
vehicle production increased 7% in North
America and declined 1% in Europe, both relative to the second quarter of
2012. In the second quarter of 2013, our North American, European
and Rest of World production sales, as well as complete vehicle
assembly sales and tooling, engineering and other sales increased,
in each case relative to the comparable quarter in 2012.
Complete vehicle assembly sales increased 23% to $796 million for the second quarter of 2012
compared to $645 million for the second quarter of 2012, while
complete vehicle assembly volumes increased 17% to approximately
39,000 units.
During the second quarter of 2013, income from operations before
income taxes was $543 million, net
income attributable to Magna International Inc. was $415 million and diluted earnings per share were
$1.78, increases of $73 million, $66
million and $0.30
respectively, each compared to the second quarter of 2012.
During the second quarter ended June 30,
2013, we generated cash from operations of $714 million before changes in non-cash operating
assets and liabilities, and invested $12
million in non-cash operating assets and liabilities. Total
investment activities for the second quarter of 2013 were
$285 million, including
$232 million in fixed asset additions and $53 million in investments and other assets.
SIX MONTHS ENDED JUNE 30,
2013
We posted record sales of $17.32
billion for the six months ended June
30, 2013, an increase of 13% from the six months ended
June 30, 2012. This higher sales
level reflected increases in our North American, European and Rest
of World production sales, as well as complete vehicle assembly
sales and tooling, engineering and other sales, in each case
relative to the first six months of 2012.
During the six months ended June 30,
2013, vehicle production increased 4% to 8.3 million units
in North America and decreased 5%
to 9.8 million units in Europe,
each compared to the first six months of 2012.
Complete vehicle assembly sales increased 28% to $1.59 billion for the six months ended
June 30, 2013 compared to
$1.24 billion for the six months
ended June 30, 2012, while complete
vehicle assembly volumes increased 21% to approximately 76,000
units.
During the six months ended June 30,
2013, income from operations before income taxes was
$1.00 billion, net income
attributable to Magna International Inc. was $784 million and diluted earnings per share were
$3.35, increases of $91 million, $92
million and $0.41,
respectively, each compared to the first six months of 2012.
During the six months ended June 30,
2013, we generated cash from operations before changes in
non-cash operating assets and liabilities of $1.32 billion, and invested $468 million in non-cash operating assets and
liabilities. Total investment activities for the first six months
of 2013 were $527 million, including
$426 million in fixed asset additions
and a $101 million increase in
investments and other assets.
A more detailed discussion of our consolidated financial results
for the second quarter and six months ended June 30, 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 June 30, 2013. This dividend is payable on
September 16, 2013 to shareholders of
record on August 30, 2013.
UPDATED 2013 OUTLOOK
Light Vehicle Production
(Units)
North America 16.1 million
Europe (1) 18.6 million
Production Sales
North America $16.0 - $16.4 billion
Europe $9.5- $9.8 billion
Rest of World $2.2- $2.5 billion
Total Production Sales $27.7 - $28.7 billion
Complete Vehicle Assembly
Sales $2.8 - $3.1 billion
Total Sales $33.3 - $34.7 billion
Operating Margin (2)(3) Approximately 5.8%
Tax Rate (2) Approximately 23.5%
Capital Spending Approximately $1.4 billion
(1) Effective the first quarter of 2013, we disclose total European
rather than Western European light vehicle production
(2) Excluding other expense, net
(3) Excluding $158 million amortization of intangibles related to the
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 314
manufacturing operations and 89 product development, engineering
and sales centres in 29 countries. Our 123,000 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 second quarter results on Friday, August 9, 2013 at 8:00 a.m. EDT. The conference call will be
chaired by Don Walker, Chief
Executive Officer. The number to use for this call is
1-800-909-7814. The number for overseas callers is +1-212-231-2939.
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 information" or "forward-looking statements"
within the meaning of applicable securities legislation, including,
but not limited to, statements relating to: forecast light vehicle
production volumes in North
America and Europe; Magna's
expected production sales in its North American, European and Rest
of World segments; total sales; complete vehicle assembly sales;
consolidated operating margin; average effective income tax rate;
capital spending; and other matters. The forward-looking
information in this press release 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;
risk of production disruptions due to natural disasters; pension
liabilities; 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.
Magna International Inc.
337 Magna Drive
Aurora, Ontario L4G 7K1
Tel: +1-(905)-726-2462
Fax: +1-(905)-726-7164