AURORA, Ontario, March 3, 2014 /PRNewswire/ --
Magna International Inc. (TSX: MG; NYSE: MGA) today
reported financial results for the fourth quarter and year ended
December 31, 2013.
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
2013 2012 2013 2012
Sales $ 9,174 $ 8,033 $ 34,835 $ 30,837
Adjusted EBIT(1) $ 607 $ 387 $ 2,065 $ 1,658
Income from operations
before income taxes $ 514 $ 341 $ 1,905 $ 1,750
Net income attributable
to Magna International
Inc. $ 458 $ 351 $ 1,561 $ 1,433
Diluted earnings per
share $ 2.03 $ 1.49 $ 6.76 $ 6.09
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,
2013
We posted sales of $9.17 billion
for the fourth quarter ended December 31,
2013, an increase of 14% over the fourth quarter of 2012. We
achieved this sales increase in a period when vehicle production
increased 6% in North America and
5% in Europe, both relative to the
fourth quarter of 2012. In the fourth quarter of 2013, our North
American, European, and Asian production sales, as well as tooling,
engineering and other sales and complete vehicle assembly sales all
increased while our Rest of World production sales declined
relative to the comparable quarter in 2012.
Complete vehicle assembly sales increased 13% to $788 million for the fourth quarter of 2013
compared to $697 million for the
fourth quarter of 2012, while complete vehicle assembly volumes
increased 17% to approximately 37,000 units.
For the fourth quarter of 2013, adjusted EBIT increased 57% to
$607 million compared to $387 million for the fourth quarter of 2012.
For the fourth quarter of 2013, income from operations before
income taxes was $514 million, net
income attributable to Magna International Inc. was $458 million and diluted earnings per share were
$2.03, increases of $173 million, $107
million and $0.54,
respectively, each compared to the fourth quarter of 2012.
Excluding other expense (income), net after tax and net loss
attributable to non-controlling interests, the income tax valuation
allowance releases and the impact of the elimination of the Mexican
flat tax recorded in the fourth quarters of 2013 and 2012, income
from operations before income taxes, net income attributable to
Magna International Inc. and diluted earnings per share increased
$218 million, $166 million and $0.79, respectively, each compared to the fourth
quarter of 2012.
For the fourth quarter ended December 31,
2013, we generated cash from operations of $809 million before changes in non-cash operating
assets and liabilities, and $451
million in non-cash operating assets and liabilities. Total
investment activities for the fourth quarter of 2013 were
$506 million, including $463 million in fixed asset additions,
$34 million in investments and other
assets and $9 million to purchase
subsidiaries.
YEAR ENDED DECEMBER 31,
2013
We posted sales of $34.84 billion
for the year ended December 31, 2013,
an increase of 13% over the year ended December 31, 2012. This higher sales level
reflected increases in our North American, European, Asian and Rest
of World production sales as well as higher tooling, engineering
and other sales, and complete vehicle assembly sales.
For the year ended December 31,
2013, vehicle production increased 5% to 16.2 million units
in North America and decreased 1%
to 19.3 million units in Europe,
each compared to 2012.
Complete vehicle assembly sales increased 20% to $3.06 billion for the year ended December 31, 2013 compared to $2.56 billion for the year ended December 31, 2012, while complete vehicle
assembly volumes increased 19% to approximately 147,000 units.
For the year ended December 31,
2013, adjusted EBIT increased 25% to $2.07 billion compared to $1.66 billion for the year ended December 31, 2012.
For the year ended December 31,
2013, income from operations before income taxes was
$1.91 billion, net income
attributable to Magna International Inc. was $1.56 billion and diluted earnings per share were
$6.76, increases of $155 million, $128
million and $0.67,
respectively, each compared to 2012.
Excluding other expense (income), net after tax and net loss
attributable to non-controlling interests, the income tax valuation
allowance releases and the impact of the elimination of the Mexican
flat tax recorded in 2013 and 2012, income from operations before
income taxes, net income attributable to Magna International Inc.
and diluted earnings per share increased $407 million, $351
million and $1.62,
respectively, each compared to 2012.
For the year ended December 31,
2013, we generated cash from operations before changes in
non-cash operating assets and liabilities of $2.69 billion, and invested $127 million in non-cash operating assets and
liabilities. Total investment activities for the year of 2013 were
$1.37 billion, including $1.17 billion in fixed asset additions, a
$192 million increase in investments
and other assets and $9 million to
purchase subsidiaries.
Don Walker, Magna's Chief
Executive Officer commented: "2013 was another strong year for
Magna. We maintained our solid performance in North America, and made further progress in
improving profitability in Europe.
Recent investments in Asia have
begun to yield returns, even while we continue to invest in the
region. Lastly, our business in South
America, while still challenging, is poised to generate some
improvement going forward."
A more detailed discussion of our consolidated financial results
for the fourth quarter and year ended December 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
Friday, our Board of Directors declared a quarterly dividend of
$0.38 per share with respect to our
outstanding Common Shares for the quarter ended December 31, 2013. This dividend is payable on
March 28, 2014 to shareholders of
record on March 14, 2014.
Vince Galifi, Magna's Chief
Financial Officer, stated: "Our quarterly dividend per share of
$0.38, an increase of 19%, is a new
record for us. In addition, we recently stated our intention to
accelerate the utilization of our balance sheet to further invest
in our business and return capital to shareholders over the next
two years. These actions reflect our ongoing strong results and the
confidence our Board has in Magna's future."
UPDATED 2014 OUTLOOK
Light Vehicle Production (Units)
North America 16.7 million
Europe 19.3 million
Production Sales
North America $16.6 billion - $17.2 billion
Europe $9.5 billion - $9.9 billion
Asia $1.6 billion - $1.8 billion
Rest of World $0.7 billion - $0.8 billion
Total Production Sales $28.4 billion - $29.7 billion
Complete Vehicle Assembly Sales $2.8 billion - $3.1 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 this 2014 outlook, in addition to 2014 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 316
manufacturing operations and 84 product development, engineering
and sales centres in 29 countries. We have over 125,000 employees
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 fourth quarter and year end 2013
results on Monday, March 3, 2014 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
1-800-381-7839. The number for overseas callers is 1-212-231-2901.
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
Monday morning prior to the call.
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, Asia
and Rest of World segments for 2014; complete vehicle assembly
sales; consolidated operating margin, effective income tax rate;
fixed asset expenditures; implementation of action plans and
operating results improvement in our underperforming operations;
expansion of our business in high growth regions, including
Asia; and implementation of our
balance sheet strategy, including through returns of capital to our
shareholders. 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;
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; ongoing
pricing pressures, including our ability to offset price
concessions demanded by our customers; 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; our
inability to consistently develop innovative products or processes;
impairment charges related to goodwill and long-lived 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; 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; 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.comand 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 905-726-7035.
For teleconferencing questions, please
contact Nancy Hansford at
905-726-7108.