Contract assemblies to boost Magna in 2018
Magna International forecasts for 2016 and 2018 include a big increase in sales from contracted vehicle assemblies, reflecting a recent announcement of a deal with Jaguar Land Rover.
The supplier's financial outlook for 2016 and sales expectations for 2018 include light vehicle production in North America of 18.0m units in 2016 and 18.6m in 2018 plus 20.9m and 22.2m in Europe.
Production sales in North America are forecast at US$19.2bn-$19.8bn in 2016 and $20.2bn-$21.0bn in 2018. For Europe, $8.6bn-$9.0bn and $9.5bn-$10.1bn respectively. For Asia, $2.1bn-$2.3bn and $3.0bn-$3.3bn respectively and for rest of world, $0.4bn-$0.5bn and $0.4bn-$0.6bn respectively.
Total production sales are pegged at $30.3bn-$31.6bn in 2016 and $33.1bn-$35.0bn in 2018.
Complete vehicle assembly sales are forecast at $1.7bn-$2.0bn for 2016 with a big jump to $5.3bn-$5.8bn for 2018.
Total sales in 2016 will be $34.6bn-$36.3bn with an adjusted EBIT Margin in the high 7% range and capital spending of $1.8bn-$2.0bn.
Magna CEO Don Walker said: "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."