Magna International has forecast North American light vehicle production in 2014 at 16.7m units with output of 19.1m in Europe.

The supplier expects total sales this year of US$28.6bn-$29.9bn split $16.8bn-$17.4bn in North America, $9.5bn-$9.9bn in Europe and $2.3bn-$2.6bn elsewhere.

Magna is also forecasting contract vehicle assembly (such as BMW's Mini Countryman and Paceman models built at Magna Steyr in Austria) to contribute $2.6bn-$2.9bn taking the total 2014 sales forecast to $33.8bn-$35.5bn. Operating margin is forecast in the "mid 6% range".

The company plans a capital spend of around $1.4bn this year.

CEO Don Walker said: "Our outlook indicates our continued progress in expanding our business in high growth regions, particularly in Asia.  In addition, our outlook reflects our commitment to improving operating results in Europe including through ongoing restructuring, implementing operational improvements and exercising discipline in quoting new business.  This, together with ongoing strong performance in North America, is expected to result in continued improvement in our consolidated operating margin in the coming years."

Looking further out, Magna expects 2016 sales about $3.6 billion higher than 2014, based on assumed full year 2016 light vehicle production volumes of approximately 17.7m units in North America and 20.9m in Europe.

It expects its sales increase to be split 45% in North America, 25% in Europe and 30% elsewhere.

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Magna International Inc. (TSX: MG) (NYSE: MGA) today announced its financial outlook for 2014.  All amounts are in U.S. dollars.

Don Walker, Magna's Chief Executive Officer commented: "Our outlook indicates our continued progress in expanding our business in high growth regions, particularly in Asia.  In addition, our outlook reflects our commitment to improving operating results in Europe including through ongoing restructuring, implementing operational improvements and exercising discipline in quoting new business.  This, together with ongoing strong performance in North America, is expected to result in continued improvement in our consolidated operating margin in the coming years."

2014 OUTLOOK

   
 
Light Vehicle Production (Units)
      North America
      Europe
 
Production Sales
      North America
      Europe
      Rest of World
      Total Production Sales
 

Complete Vehicle Assembly Sales
 
Total Sales
 
Operating Margin*
 
Tax Rate*
 
Capital Spending
 
 
   
16.7 million
19.1 million


 $16.8 billion - $17.4 billion
$9.5 billion - $9.9 billion
$2.3 billion - $2.6 billion
$28.6 billion - $29.9 billion
 
$2.6 billion - $2.9 billion
 
$33.8 billion - $35.5 billion
 
Mid 6% range
 
Approximately 24.5%
 
Approximately $1.4 billion
 
* Excluding other expense (income), net

 

 

In addition to our 2014 sales and light vehicle production outlook above, we expect 2016 total production sales to be approximately $3.6 billion higher than 2014, based on assumed full year 2016 light vehicle production volumes of approximately 17.7 million units in North America and approximately 20.9 million units in Europe.  We expect the increase in total production sales to be split approximately as follows by segment: 45% in North America, 25% in Europe and 30% in Rest of World. 

Original source: Magna