Canada-based global supplier Magna International on Thursday said third quarter 2011 operating income was US$164m, net income $102m and earnings per share $0.42, decreases of $164m, $164m and $0.72, respectively, year on year.
One-off costs in the quarter relating to the disposal of a “non-strategic interior systems operation” and “the cost of entering into an agreement pertaining to the settlement of certain claims” negatively impacted operating income and net income by $124m and earnings per share by $0.52, Magna said in a statement.
Q3 sales rose 21% to $7bn as vehicle production increased 4% in western Europe and 8% in North America.
Completed vehicle assembly sales – Austrian assembly unit Magna Steyr’s contracts include BMW ‘s Mini Countryman line – increased 28% to $663m and unit volume rose 55% to about 32,000 units.
Sales rose 26% to $21.5bn in the nine months to 30 September with vehicle production up 8% to 9.7m units in North America and 5% to 10.3m in western Europe.
Magna’s complete vehicle assembly sales increased 33% to $2.1bn and unit volume rose 65% to around 100,000.
Operating income was $926m, net income $706m and earnings per share $2.89, decreases of $47m, $78m and $0.54, respectively, year on year.
The Q3 one-offs, plus the write down of property and a gain on disposal of an equity accounted investment, negatively impacted nine-month operating income and net income by $123m and earnings per share by $0.50, the supplier noted.
Magna will pay a quarterly dividend of $0.25.
The company has updated its 2011 full year outlook and now expects light vehicle production to reach 12.9m units in North America and 13.6m in western Europe. Magna estimates its final sales tally will be $13.6-$13.9bn in North America, $8.5-8.7bn in Europe and $1.3-1.4bn elsewhere.
It anticipates complete vehicle assembly sales of $2.6-$2.8bn and operating margin around 4.75%. Capital spend will be $1.0-1.1bn.