Magna International has reported a modest rise in operating income of US$240 million for the third quarter of 2005 compared to $223 million a year ago.
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Q3 net income was $159 million, up from $132 million on 2004.
Third quarter sales rose 12% to $5.4 billion and reflected increases of 24% in North American average dollar content per vehicle and 14% in European average dollar content per vehicle.
During the third quarter, North American vehicle production increased 2% and European vehicle production declined 6%.
Operating income was $817 million for the nine months ended September 30, compared to $875 million a year ago.
Net income rose to $556 million, compared to $499 million in 2004.
Magna booked record sales of $17.0 billion for the period, up 13% over the comparable period in 2004.
The rise reflects increases of 21% in North American average dollar content per vehicle and 15% in European average dollar content per vehicle.
During the first nine months of 2005, North American vehicle production declined 1% and European vehicle production declined 5%.
European complete vehicle assembly sales of models such as the Chrysler 300C and Voyager, and Jeep Grand Cherokee that Magna assembles on behalf of DaimlerChrysler in Austria, declined 6% or $195 million to $3.1 billion in the nine months, compared to $3.3 billion the previous year.
Looking ahead, Magna expects results to continue to be impacted by the negative conditions in the automotive industry, including weak automotive production, OEM price concessions, higher commodity costs and general economic uncertainty.
“In addition, we expect that our 2005 results will be negatively impacted by certain unusual items, including rationalisation and other charges associated with certain of our operations, including operations that supplied MG Rover, as well as restructuring charges arising from our recently completed privatisations,” Magna said in a statement.
