As it announced third quarter results, Magna International said founder and honorary chairman Frank Stronach would be leaving the board immediately.

Chairman Bill Young thanked Stronach "for his enormous contribution to Magna's success over the past six decades".

Stronach said: "It has been two years since control of Magna has changed hands and, in that time, I have become involved in numerous activities outside of the automotive industry. One of these activities involves politics in Austria and I do not want my political views to be confused with my role on Magna's board. As a result, I feel the time is right to step down as a member.

"Of course, as honorary chairman, I will always be available to provide any guidance that management or the board requires."

The Aurora, Ontario-based company which Stronach, as an Austrian toolmaker immigrant to Canada, founded, said third quarter sales rose 6% year on year to US$7.4bn as vehicle production increased 15% in North America and declined 7% in western Europe. North American and rest of world production sales, as well as tooling, engineering and other sales increased, while European production sales and complete vehicle assembly sales decreased.

Complete vehicle assembly sales fell 6% to $620m as volume fell 9% to around 29,000 units.

Adjusted EBIT increased 23% to $352m. Income from operations before income taxes was $500m, net income attributable to Magna International was $390m and earnings per share $1.66, increases of $336m, $288m and $1.24, respectively.

Nine-month sales also rose 6% - to $22.8bn as vehicle production increased 20% to 11.6m units in North America and decreased 7% to 9.6m units in western Europe.

Complete vehicle assembly sales decreased 10% to $1.9bn with volume off 8% to about 92,000 units.

Adjusted EBIT increased 22% to $1.3bn, income from operations before income taxes was $1.4bn, net income attributable to Magna International was $1.1bn and earnings per share $4.60, increases of $483m, $376m and $1.71, respectively.

Show the press release

Magna Announces Third Quarter and Year to Date Results

AURORA, Ontario, November 8, 2012 /PRNewswire/ --



   Magna International Inc. (TSX: MG) (NYSE: MGA) today reported financial results for
the third quarter ended September 30, 2012.




                                               THREE MONTHS ENDED        NINE MONTHS ENDED
                                                  SEPTEMBER 30,              SEPTEMBER 30,
                                                   2012        2011         2012        2011
       Sales                                   $  7,411    $  6,970     $ 22,804    $ 21,497
       Adjusted EBIT[(1)]                      $    352    $    286     $  1,271    $  1,046
       Income from operations before income
       taxes                                   $    500    $    164     $  1,409    $    926
       Net income attributable to Magna
       International Inc.                      $    390    $    102     $  1,082        $706
       Diluted earnings per share              $   1.66    $   0.42     $   4.60    $   2.89

       All results are reported in millions of U.S. dollars, except per share figures, which
       are in U.S. dollars.
       (1) Adjusted EBIT is the measure of segment profit or loss as reported in the
           Company's attached unaudited interim consolidated financial statements.
       Adjusted EBIT represents income from operations before income taxes; interest expense
       (income), net; and other (income) expense, net


   THREE MONTHS ENDED SEPTEMBER 30, 2012



   We posted sales of $7.4 billion for the third quarter ended September 30, 2012, an
increase of 6% from the third quarter of 2011. We achieved this sales increase in a period
when vehicle production increased 15% in North America and declined 7% in Western Europe,
both relative to the third quarter of 2011. In the third quarter of 2012, our North
American and Rest of World production sales, as well as tooling, engineering and other
sales increased, while European production sales and complete vehicle assembly sales
decreased, in each case relative to the comparable quarter in 2011.



   Complete vehicle assembly sales decreased 6% to $620 million for the third quarter of
2012 compared to $663 million for the third quarter of 2011, while complete vehicle
assembly volumes decreased 9% to approximately 29,000 units.



   During the third quarter of 2012, adjusted EBIT increased 23% to $352 million compared
to $286 million for the third quarter of 2011.



   During the third quarter of 2012, income from operations before income taxes was $500
million, net income attributable to Magna International Inc. was $390 million and diluted
earnings per share were $1.66, increases of $336 million, $288 million and $1.24,
respectively, each compared to the third quarter of 2011. During the third quarter of
2012, we recorded other income related to a re-measurement gain on the acquisition of the
controlling 27% interest in Magna E-Car Systems Partnership ("E-Car"). This positively
impacted income from operations before income taxes by $153 million, net income
attributable to Magna International Inc. by $125 million and diluted earnings per share by
$0.53 for the third quarter of 2012. During the third quarter of 2011, we recorded other
expense relating to the disposal of an interior systems operation and the cost of entering
into an agreement pertaining to the settlement of certain claims. These items negatively
impacted income from operations before income taxes and net income attributable to Magna
International Inc. by $124 million and diluted earnings per share by $0.52 for the third
quarter of 2011.



   During the third quarter ended September 30, 2012, we generated cash from operations
of $503 million before changes in non-cash operating assets and liabilities, and invested
$63 million in non-cash operating assets and liabilities. Total investment activities for
the third quarter of 2012 were $363 million, including $279 million in fixed asset
additions, $28 million in investments and other assets and $56 million to purchase
subsidiaries.



   NINE MONTHS ENDED SEPTEMBER 30, 2012



   We posted sales of $22.8 billion for the nine months ended September 30, 2012, an
increase of 6% from the nine months ended September 30, 2011. This higher sales level
reflected increases in our North American, European, and Rest of World production sales as
well as higher tooling and engineering and other sales, partially offset by lower complete
vehicle assembly sales.



   During the nine months ended September 30, 2012, vehicle production increased 20% to
11.6 million units in North America and decreased 7% to 9.6 million units in Western
Europe, each compared to the first nine months of 2011.



   Complete vehicle assembly sales decreased 10% to $1.9 billion for the nine months
ended September 30, 2012 compared to $2.1 billion for the nine months ended September 30,
2011, while complete vehicle assembly volumes decreased 8% to approximately 92,000 units.



   During the nine months ended September 30, 2012, adjusted EBIT increased 22% to $1.3
billion compared to $1.0 billion for the nine months ended September 30, 2011.



   During the nine months ended September 30, 2012, income from operations before income
taxes was $1.4 billion, net income attributable to Magna International Inc. was $1.1
billion and diluted earnings per share were $4.60, increases of $483 million, $376 million
and $1.71, respectively, each compared to the first nine months of 2011. During the nine
months ended September 30, 2012, we recorded other income related to a re-measurement gain
on the acquisition of the controlling 27% interest in E-Car. This positively impacted
income from operations before income taxes by $153 million, net income attributable to
Magna International Inc. by $125 million and diluted EPS by $0.53 for the nine months
ended September 30, 2012. During the nine months ended September 30, 2011, we recorded
other expense relating to the disposal of an interior systems operation, the cost of
entering into an agreement pertaining to the settlement of certain claims, the write down
of real estate, and a gain on disposal of an equity accounted investment. These items
negatively impacted income from operations before income taxes and net income attributable
to Magna International Inc. by $123 million and diluted earnings per share by $0.50 for
the nine months ended September 30, 2011.



   During the nine months ended September 30, 2012, we generated cash from operations
before changes in non-cash operating assets and liabilities of $1.6 billion, and invested
$487 million in non-cash operating assets and liabilities. Total investment activities for
the first nine months of 2012 were $972 million, including $796 million in fixed asset
additions, a $97 million increase in investments and other assets and $79 million to
purchase subsidiaries.



   A more detailed discussion of our consolidated financial results for the third quarter
and nine months ended September 30, 2012 is contained in the Management's Discussion and
Analysis of Results of Operations and Financial Position and the unaudited interim
consolidated financial statements and notes thereto, which are attached to this Press
Release.



   DIVIDENDS



   Today, our Board of Directors declared a quarterly dividend of $0.275 with respect to
our outstanding Common Shares for the quarter ended September 30, 2012. This dividend is
payable on December 14, 2012 to shareholders of record on November 30, 2012.



   NORMAL COURSE ISSUER BID



   Subject to approval by the Toronto Stock Exchange and the New York Stock Exchange, our
Board of Directors approved a normal course issuer bid to purchase up to 12.0 million of
our Common Shares. This new normal course issuer bid is expected to commence on or about
November 13, 2012 and will terminate one year later.



   OTHER MATTERS



   We also announced that Frank Stronach, Magna's Founder and Honorary Chairman has
decided to step down as a member of Magna's Board of Directors, effective immediately.



   Magna's Chairman, Bill Young, stated: "On behalf of the Board, I would like to thank
Frank for his enormous contribution to Magna's success over the past six decades."



   Frank Stronach commented: "It has been two years since control of Magna has changed
hands and, in that time, I have become involved in numerous activities outside of the
automotive industry. One of these activities involves politics in Austria and I do not
want my political views to be confused with my role on Magna's Board. As a result, I feel
the time is right to step down as a member of Magna's Board. Magna is in excellent hands,
with a seasoned management team and very capable Board members. Of course, as Honorary
Chairman, I will always be available to provide any guidance that management or the Board
requires."



   Don Walker, Magna's Chief Executive Officer added: "Personally and on behalf of all
our employees, I would like to thank Frank for all he has done for this company. Also, I
would like to assure all our stakeholders that we remain fully committed to the Corporate
Constitution, Employee Charter and Operational Principles. These and other elements of the
Fair Enterprise culture that Frank founded have been the cornerstone of Magna's success
over the years and we expect they will be key to our future success."



   UPDATED 2012 OUTLOOK




       Light Vehicle Production
       (Units)
                     North America               15.3 million
                     Western
                     Europe                      12.6 million
       Production Sales
                                                 $15.1 billion
                                                    - $15.4
                     North America                  billion
                                                 $8.6 billion
                                                    - $8.8
                     Europe                         billion
                                                 $1.8 billion
                                                    - $1.9
                     Rest of World                  billion
                     Total                       $25.5 billion
                     Production                     - $26.1
                     Sales                          billion
                                                 $2.4 billion
       Complete Vehicle Assembly                    - $2.6
       Sales                                        billion
                                                 $30.3 billion
                                                    - $31.2
       Total Sales                                  billion
                                                 Low to mid 5%
       Operating Margin(*) (**)                      range
                                                 Approximately
       Tax Rate*                                      25%
                                                 Approximately
       Capital Spending                          $1.4 billion


       * Excluding other income, net (unusual items)
       ** Excluding $52 million amortization of intangibles related to acquisition
       of E-Car


   In this 2012 outlook, in addition to 2012 light vehicle production, we have assumed no
material 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 current rates.

Original source: PRN