CANADA: Assembly income slows but Magna profits up
Operating income at Magna International was $US267m for the third quarter ended 30 September compared to $155m a year ago. Net income was $155m compared with $94m.
Sales rose 12% to $6.1bn as increases in our North American, European and rest of world production sales rose, offset by reductions in complete vehicle assembly sales and tooling, engineering and other sales.
North American and European average dollar content per vehicle increased 14% and 22%, respectively. North American vehicle production increased 3% while European vehicle production increased 5%.
Complete vehicle assembly sales decreased 16% to $859m while complete vehicle assembly volumes declined 25%. Magna has recently lost the contract to build Chrysler minivans for export with that work now being done in-house by the automaker at a US plant.
Magna sales for the first nine months rose 8% to $19.2bn though complete vehicle assembly sales decreased 3% to $3.027bn. Operating income was $949m vs $750m and net income was $635m vs $499m.
Magna expects full-year sales between $25bn and $26.3bn, based on full year 2007 light vehicle production volumes of approximately 15.1m units in North America and approximately 15.8m in Europe. Full year 2007 average dollar content per vehicle is expected to be between $845 and $875 in North America and between $410 and $435 in Europe. Complete vehicle assembly sales are seen between $3.8bn and $4.1bn.