AURORA, Ontario, January 15, 2014 /PRNewswire/ --
Magna International Inc. (TSX: MG) (NYSE: MGA) today
announced its financial outlook for 2014. All amounts are in
U.S. dollars.
Don Walker, Magna's Chief
Executive Officer, commented: "Our outlook indicates our continued
progress in expanding our business in high growth regions,
particularly in Asia. In addition, our outlook reflects our
commitment to improving operating results in Europe including through ongoing
restructuring, implementing operational improvements and exercising
discipline in quoting new business. This, together with
ongoing strong performance in North
America, is expected to result in continued improvement in
our consolidated operating margin in the coming years."
2014 OUTLOOK
Light Vehicle Production (Units)
North America
Europe 16.7 million
19.1 million
Production Sales
North America $16.8 billion - $17.4 billion
Europe $9.5 billion - $9.9 billion
Rest of World $2.3 billion - $2.6 billion
Total Production Sales $28.6 billion - $29.9 billion
Complete Vehicle Assembly Sales $2.6 billion - $2.9 billion
Total Sales $33.8 billion - $35.5 billion
Operating Margin* Mid 6% range
Tax Rate* Approximately 24.5%
Capital Spending Approximately $1.4 billion
* Excluding other expense (income), net
In addition to our 2014 sales and light vehicle production
outlook above, we expect 2016 total production sales to be
approximately $3.6 billion higher
than 2014, based on assumed full year 2016 light vehicle production
volumes of approximately 17.7 million units in North America and approximately 20.9 million
units in Europe. We expect the increase in total production
sales to be split approximately as follows by segment: 45% in
North America, 25% in Europe and 30% in Rest of World.
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 2013 rates.
ABOUT MAGNA
We are the most diversified global automotive supplier. We
design, develop and manufacture technologically advanced automotive
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 approximately 125,000 employees in 316 manufacturing
operations and 84 product development, engineering and sales
centres in 29 countries.
We will be making a presentation at the Deutsche Bank Global Auto Industry
Conference on Wednesday, January 15, 2014 at 12:05 p.m. EST during which
we will review the details of our Outlook. The presentation will be
webcast and available on our website at http://www.magna.com. The slides
accompanying the presentation will be available on our website Wednesday
morning by 7 a.m. EST.
FORWARD-LOOKING STATEMENTS
This press release 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: forecasts of
light vehicle production in North
America and Western Europe;
expected consolidated sales, based on such light vehicle production
volumes; production sales, including expected split by segment, in
its North America, Europe and Rest
of World segments for 2014 and subsequent years to 2016; complete
vehicle assembly sales; consolidated operating margin, including
improvement in future years; effective income tax rate; fixed asset
expenditures; implementation of action plans and operating results
improvement in Europe, including
through restructuring actions, operational improvements and quoting
discipline; expansion of our business in high growth regions,
including Asia. The forward-looking statements or
forward-looking information in this MD&A 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 or forward-looking
information 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 or forward-looking information. Any such
forward-looking statements or forward-looking information 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;
continuing economic uncertainty in various geographic regions,
including Western Europe;
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;
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, Russia, India, Argentina and Brazil and other non-traditional markets for
us; 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; impairment
charges related to goodwill, long-lived assets and deferred tax
assets; 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, including the ongoing
antitrust investigation being conducted by the German Federal
Cartel Office; 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; risks arising due to the failure of a
major financial institution; liquidity risks; bankruptcy or
insolvency of a major customer or supplier; 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 or
forward-looking information, we caution readers not to place undue
reliance on any forward-looking statements or forward-looking
information, 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
or forward-looking information. 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
or forward-looking information 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
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.