Components-to-contract-assembly supplier Magna International boosted second quarter operating income year on year by 32% to $US377m and hiked net income 36% to $262m.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Earnings per share were $2.35 compared to $1.75.
Sales of $6.7bn were up 6% as a result of increases in our North American, European and rest of world production sales offset in part by reductions in complete vehicle assembly sales and tooling, engineering and other sales.
North American and European average dollar content per vehicle increased in the second quarter by 7% and 19% respectively. North American vehicle production declined 2% while European vehicle production increased 1%.
Complete vehicle assembly sales decreased 1% to $1.064bn while complete vehicle assembly volumes declined 12%.
In the second quarter, Magna booked restructuring and rationalisation charges of $US10m related to two facilities in North America and $4m for one facility in Europe.
It also booked an asset impairment of $22m [$14m after tax] relating to specific assets at a powertrain facility in the United States.
First-half operating income rose 15% to $682m and net income was up 18.5% to $480m. Earnings per share were $4.32 vs $3.66.
Sales of $13.2bn were up 6% due to increases in North American, European and rest of world production sales and complete vehicle assembly sales, offset by reductions in tooling, engineering and other sales.
North American and European average dollar content per vehicle increased 8% and 17%, respectively as North American vehicle production declined 5% while European vehicle production increased 3%.
Complete vehicle assembly sales increased 3% to $2.168bn though volumes declined 8%.
For full year 2007, Magna expects consolidated sales to be between $24.3bn and $25.6bn, based on full-year 2007 light vehicle production volumes of approximately 15.2m units in North America and approximately 15.7m units in Europe.
Average dollar content per vehicle is expected to be between $820 and $850 in North America and between $400 and $425 in Europe.
Complete vehicle assembly sales are seen between $3.7bn and $4.0bn.
