AURORA, Ontario, January 14, 2015 /PRNewswire/ --
Magna International Inc. (TSX: MG;
NYSE: MGA) today announced its financial outlook for 2015. All
amounts are in U.S. dollars.
2015 OUTLOOK
Light Vehicle Production (Units)
North America 17.3 million
Europe 20.3 million
Production Sales
North America $17.6 billion - $18.2 billion
Europe $9.0 billion - $9.4 billion
Asia $2.0 billion - $2.2 billion
Rest of World $0.6 billion - $0.7 billion
Total Production Sales $29.2 billion - $30.5 billion
Complete Vehicle Assembly Sales $2.4 billion - $2.7 billion
Total Sales $34.4 billion - $36.1 billion
Operating Margin* Low 7% range
Tax Rate* 25% - 26%
Capital Spending $1.5 billion - $1.7 billion
* Excluding other expense (income), net
In addition to our 2015 sales and light vehicle production
outlook above, we expect 2017 total production sales to be
approximately $5 billion higher than
2015, based on assumed full year 2017 light vehicle production
volumes of approximately 18.2 million units in North America and approximately 21.9 million
units in Europe. We expect the
increase in total production sales to be split approximately as
follows by segment: 45% in North
America, 35% in Europe and
20% in Asia.
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 2014 rates.
ABOUT MAGNA
We are a leading global automotive supplier with 313 manufacturing
operations and 84 product development, engineering and sales
centres in 28 countries. We have approximately 131,000 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 be making a presentation at the Deutsche Bank Global
Auto Industry Conference on Wednesday,
January 14, 2015 at 1:15 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 9 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, Asia
and Rest of World segments for 2015; complete vehicle assembly
sales; consolidated operating margin; effective income tax rate;
and fixed asset expenditures. The forward-looking statements or
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 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;
fluctuations in relative currency values; 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; 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, Thailand, 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; 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 German and Brazilian authorities; 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
Please contact 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.