Magna has posted second-quarter net income attributable to Magna International up 14% to US$626m.
“We made progress recently on some strategic fronts,” said Magna CEO, Don Walker. “We signed an agreement with BJEV to expand our vehicle assembly operations into China and announced an acquisition that will expand our global footprint in Lighting.
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“However, relative to our expectations, our joint venture transmission business is experiencing headwinds. Nevertheless, we expect the business to continue to grow, driven by further penetration of dual clutch transmissions.”
The supplier also unveiled record second-quarter sales, up 12% year over year to US$10.3bn, as well as returning US$844m to shareholders through share repurchases and dividends.
“Our updated outlook for 2018 substantially reflects the strengthening US dollar, reduced equity income from joint ventures in our transmission business and the estimated impact of tariffs,” added Magna CFO, Vince Galifi.
“The reduction to our equity income outlook in 2020 and the corresponding reduction to our adjusted EBIT margin percentage reflects a continuation of some of the trends impacting our joint venture transmission business this year.
“We continue to be focused on reinvesting in our businesses and returning excess capital to our shareholders. In the quarter, we returned US$844m in the form of dividends and share repurchases to Magna shareholders bringing our full year total to approximately US$1.1bn.”
For the six months to 30 June, Magna recorded sales of US$21.07bn, an increase of 17%. Net income attributable to Magna International was US$1.29bn.
