AURORA, ON,
Jan. 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
Production Sales
North America
Europe
Rest of World
Total Production
Sales
Complete Vehicle Assembly Sales
Total Sales
Operating Margin*
Tax Rate*
Capital Spending
|
16.7 million
19.1 million
$16.8 billion - $17.4 billion
$9.5 billion - $9.9 billion
$2.3 billion - $2.6 billion
$28.6 billion - $29.9 billion
$2.6 billion - $2.9 billion
$33.8 billion - $35.5 billion
Mid 6% range
Approximately 24.5%
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 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 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
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 www.sec.gov |
SOURCE Magna International Inc.