Aurora, Ontario-based global supplier and contract assembler Magna International on Friday (10 August) said second quarter 2012 operating income rose from $108m last year to $470m, with net income up$67m to $349m and earnings per share up $0.33 to $1.48.
Magna booked posted record sales up 5% to $7.7bn, noting it had achieved a rise in a period when vehicle production increased 28% in North America and declined 7% in Western Europe.
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It said North American and Rest of World vehicle production sales, as well as tooling, engineering and other sales increased in the second quarter but European production sales and complete vehicle assembly sales both fell.
Complete vehicle assembly sales were off 11% to $645m for the while complete vehicle assembly volumes decreased 6% to about 33,000 units.
Magna’s main current contract is Mini Countryman assembly at Magna Steyr in Graz, Austria, for BMW where an additional three-door variant called Paceman is due to go into production there later this year.
Magna has lots a considerable amount of contract assembly work from Graz in recent years – offset by winning the Mini deal – as long-term customers such as Chrysler and Daimler have taken work back in house or model lines have reached the end of their production lives.
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By GlobalDataFor the first half to 20 June, Magna booked sales up $15.4bn as higher parts sales to North American, European and Rest of World customers were partially offset by lower complete vehicle assembly sales and tooling, engineering and other business.
Vehicle production increased 23% to 7.9m units in North America and decreased 7% to 6.8 m units in western Europe in the first half.
Complete vehicle assembly sales decreased 11% to $1.2bn while complete vehicle assembly volume slipped 8% to around 63,000 units.
Operating income rose $147m to $909m, net income was up $88m to $692m and earnings per share climbed $0.48 to $2.94.
Magna noted it had reached an agreement to purchase from a company affiliated with Stronach Group the controlling 27% partnership interest in the Magna E-Car Systems (E-Car) partnership for $74.67m in cash – it already owns the remaining 73% non-controlling interest in E-Car.
CEO Don Walker said: “We are pleased to regain control of Magna E-Car’s assets and business, which will be absorbed within our existing operating units. We expect hybrid and electric vehicle production to continue to grow globally in the future, and we believe that Magna stands to benefit from this trend by supplying H/EV components, systems and engineering services to our customers.”
The supplier will pay a quarterly dividend of $0.275.
