Auto industry supplier Magna International expects full year 2006 sales of $22.0bn to $23.3bn, based on full year 2006 light vehicle production volumes of approximately 15.8m units in North America and approximately 15.8m units in Europe.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Average dollar content per vehicle is expected to be between US$750 and $780 in North America and between $300 and $325 in Europe.
Magna forecast its European complete vehicle assembly sales would be $3.3bn to $3.6bn and its operating margin around 5%, exclusing unusual items.
“We expect earnings growth in full year 2006 compared to 2005, excluding unusual items from both years,” the company said in a statement on Thursday (12 January).
Full year 2006 spending on fixed assets was forecast in the range of $850m to $900m.
Magna has revised its previous outlook for 2007 average dollar content per vehicle made a year ago.
Having previously forecast average dollar content per vehicle for 2007 of between $835 and $880 in North America and $332 and $372 in Europe, it is now expecting 2007 North American average dollar content to be between $805 and $840 and between $315 and $355 in Europe.
Unusual items for 2005 included charges associated for rationalisation and restructuring activities, (including privatisation of former public subsidiaries during the year), charges associated with operations that supplied now-defunct UK car maker MG Rover, and unspecified non-recurring gains.
Unusual items for 2006 will include more rationalisation and restructuring charges.
