• Sales up 54% to US$5.5bn
  • Operating income $285m vs $230m loss in Q1 2009
  • Net income up to $223m from $200m loss a year ago

Aurora, Canada-based Magna International on Thursday (6 May, 2010) reported a healthy set of back-in-the-black results for the first quarter of 2010.

Operating income rose to US$285m, compared with a loss of $230m a year ago on sales up 54% to $5.5bn.

Net income of $223m compared with a $200m loss in 2009 and earnings per share rose to $1.97 from -$1.79 in Q1, 2009.

Magna said the higher sales tally was due to increases in North American, European and rest of world OEM production sales and complete vehicle assembly sales.

During the first quarter of 2010, North American and European average dollar content per vehicle increased by 5% and 15%, respectively, year on year. North American and European vehicle production increased 67% and 33% respectively.

Complete vehicle assembly sales increased 11% to $446m in the first quarter of 2010 compared to $401m a year ago, while complete vehicle assembly volumes increased 49% to 17,971 units.

Magna also said today it had entered into a transaction agreement with the Stronach Trust under which holders of class A subordinate voting shares would be given the opportunity to decide whether to eliminate the dual class share capital structure.