Magna today said that its results for both the full year and the first quarter of 2002 will continue to be impacted by the negative conditions that are affecting the automotive industry generally, including production cut-backs, OEM price concessions under long-term arrangements and general economic uncertainty.
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The company expects full year 2002 average dollar content per vehicle to range between $425 and $445 in North America and between $210 and $230 in Europe.
Further, Magna is assuming full year 2002 production volumes of approximately 15.3 million units (including medium and heavy trucks) in North America and approximately 15.9 million units in Europe.
Based on the declines in production volumes, the increases in average dollar content per vehicle in North America and Europe and anticipated tooling and other automotive sales, the company expects its automotive sales for the full year 2002 to range from $10.8 billion to $11.6 billion. In addition, diluted earnings per share from operations for 2002 are expected to be in the range of $5.25 to $5.90.
In addition, the company expects that full year 2002 spending for fixed assets for its automotive business will be in the range of $650 million to $700 million.
For the first quarter of 2002, Magna expects average dollar content per vehicle to range between $420 and $435 in North America and between $210 and $230 in Europe. In addition, the company has assumed that first quarter 2002 vehicle volumes will be approximately 4.0 million units in North America and 3.9 million units in Europe.
Based on expected average dollar content per vehicle in North America and Europe, the foregoing volume assumptions and anticipated tooling and other automotive sales, the company expects its automotive sales for the first quarter of 2002 to be between $2.7 billion and $2.9 billion and diluted earnings per share from operations to be in the range of $1.40 to $1.70.
Magna also announced its outlook for growth in content per vehicle to 2004. The company expects 2004 content per vehicle to be in the range of $520 to $560 in North America and in the range of $300 to $340 in Europe. This represents a compound average growth rate in content per vehicle, for North America and Europe combined, in the range of 11% to 16%.
