AURORA, ON, Jan. 13, 2016 /CNW/ - Magna International Inc.
(TSX: MG; NYSE: MGA) today announced its financial outlook for
2016 and sales expectations for 2018. All amounts are in U.S.
dollars.
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2016
Outlook
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2018
Expectations
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Light Vehicle
Production (Units)
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North
America
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18.0
million
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18.6
million
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Europe
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20.9
million
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22.2
million
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Production
Sales
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North
America
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$19.2 billion - $19.8
billion
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$20.2 billion - $21.0
billion
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Europe
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$8.6 billion - $9.0
billion
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$9.5 billion - $10.1
billion
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Asia
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$2.1 billion - $2.3
billion
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$3.0 billion - $3.3
billion
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Rest of
World
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$0.4 billion - $0.5
billion
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$0.4 billion - $0.6
billion
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Total Production
Sales
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$30.3 billion - $31.6
billion
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$33.1 billion - $35.0
billion
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Complete Vehicle
Assembly Sales
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$1.7 billion - $2.0
billion
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$5.3 billion - $5.8
billion
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Total
Sales
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$34.6 billion - $36.3
billion
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Adjusted EBIT
Margin(1)
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High 7%
range
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Interest
Expense
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Approximately $80
million
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Tax
Rate(2)
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25% - 26%
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Capital
Spending
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$1.8 billion -
$2.0 billion
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(1) We believe Adjusted EBIT is
the most appropriate measure of operational profitability or loss
for our reporting segments. Adjusted EBIT
represents income from operations before income taxes;
interest expense, net; and other expense (income),
net.
(2) Excluding other
expense (income), net
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In this outlook we have assumed no material unannounced
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 2015 rates.
Don Walker, Magna's Chief
Executive Officer, commented: "Magna has a tremendous amount of
growth ahead, reflecting new business awards as well as recently
completed acquisitions, including Getrag. We are highly focused on
ensuring that we deliver strong returns on this sales growth."
ABOUT MAGNA
We are a leading global automotive supplier with 305 manufacturing
operations and 95 product development, engineering and sales
centres in 29 countries. We have approximately 139,000 employees
focused on delivering superior value to our customers through
innovative processes and World Class Manufacturing. Our product
capabilities include producing body, chassis, 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
www.magna.com.
We will be making a presentation at the Deutsche Bank Global
Auto Industry Conference on Wednesday,
January 13, 2016 at 10:15 a.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 Magna's forecasts of: light vehicle production
in North America and Europe; production sales, including expected
split by reporting segment; complete vehicle assembly sales;
consolidated sales; Adjusted EBIT margin; interest expense;
effective income tax rate; and capital 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 global or regional
economic uncertainty; underperformance of one or more of our
operating divisions; our ability to successfully launch material
new or takeover business; risks of conducting business in foreign
markets, including China,
Russia, India, Argentina and Brazil and other non-traditional markets for
us; legal claims and/or regulatory actions against 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; inability to sustain or grow our
business; our ability to successfully compete with other automotive
suppliers; 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; a
shift away from technologies in which we are investing; 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;
restructuring actions by OEMs, including plant closures;
restructuring, downsizing and/or other significant non-recurring
costs; 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; a prolonged disruption in
the supply of components to us from our suppliers; impairment
charges related to goodwill, long-lived assets and deferred tax
assets; risk of production disruptions due to natural disasters;
pension liabilities; 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.