Magna has posted third quarter net income up 47% to US$470m, with sales of US$8.82bn, an increase of 6% compared to the same period last year.

The supplier notes the sales increase occurred as vehicle production increased 8% in North America and 4% in Europe, both relative to the third quarter of 2013.

In Q3, Magna's North American and Asian production sales, complete vehicle assembly sales and tooling, engineering and other sales increased, while its European and Rest of World production sales decreased.

Complete vehicle assembly sales increased 9% to US$740m for the third quarter of 2014, while complete vehicle assembly volumes decreased 5% to around 32,000 units.

Magna nine-month sales were US$27.25bn, up 6%.

Show the press release

MAGNA ANNOUNCES THIRD QUARTER AND YEAR TO DATE RESULTS

November 5, 2014, Aurora, Ontario, Canada……Magna International Inc. (TSX: MG; NYSE: MGA) today 

reported financial results for the third quarter ended September 30, 2014.

THREE MONTHS ENDED 

SEPTEMBER 30,

NINE MONTHS ENDED 

SEPTEMBER 30,

2014 2013 2014 2013

Sales $ 8,820 $ 8,338 $ 27,245 $25,661

Adjusted EBIT(1) $ 605 $ 444 $ 1,920 $ 1,458

Income from operations before income 

taxes $ 589 $ 391 $ 1,862 $ 1,391

Net income attributable to Magna 

International Inc. $ 470 $ 319 $ 1,373 $ 1,103

Diluted earnings per share $ 2.19 $ 1.39 $ 6.26 $ 4.74

All results are reported in millions of U.S. dollars, except per share figures, which are in U.S. dollars.

(1) We believe Adjusted EBIT is the most appropriate measure of operational profitability or loss of our reporting segments. Adjusted EBIT represents income 

from operations before taxes; interest expense, net; and other expense, net.

THREE MONTHS ENDED SEPTEMBER 30, 2014

We posted sales of $8.82 billion for the third quarter ended September 30, 2014, an increase of 6% from the third

quarter of 2013. We achieved this sales increase in a period when vehicle production increased 8% in North 

America and 4% in Europe, both relative to the third quarter of 2013. In the third quarter of 2014, our North 

American and Asian production sales, complete vehicle assembly sales and tooling, engineering and other sales 

increased, while our European and Rest of World production sales decreased, in each case relative to the 

comparable quarter in 2013.

Complete vehicle assembly sales increased 9% to $740 million for the third quarter of 2014 compared to 

$680 million for the third quarter of 2013, while complete vehicle assembly volumes decreased 5% to 

approximately 32,000 units.

During the third quarter of 2014, income from operations before income taxes was $589 million, net income 

attributable to Magna International Inc. was $470 million and diluted earnings per share were $2.19, increases of 

$198 million, $151 million and $0.80 respectively, each compared to the third quarter of 2013.

Excluding other expense, after tax for the third quarters of 2014 and 2013, income from operations before income 

taxes, net income attributable to Magna International Inc. and diluted earnings per share increased $157 million, 

$124 million and $0.69 respectively, each compared to the third quarter of 2013.- 2 -

During the third quarter ended September 30, 2014, we generated cash from operations of $737 million before 

changes in operating assets and liabilities, and invested $18 million in operating assets and liabilities. Total 

investment activities for the third quarter of 2014 were $365 million, including $315 million in fixed asset additions

and a $50 million increase in investments and other assets.

NINE MONTHS ENDED SEPTEMBER 30, 2014

We posted sales of $27.25 billion for the nine months ended September 30, 2014, an increase of 6% from the 

nine months ended September 30, 2013. This higher sales level reflected increases in our North American, 

European and Asian production sales, complete vehicle assembly sales and tooling, engineering and other sales

partially offset by a decrease in Rest of World production sales, in each case relative to the first nine months of 

2013.

During the nine months ended September 30, 2014, vehicle production increased 5% to 12.8 million units in North

America and increased 6% to 15.2 million units in Europe, each compared to the first nine months of 2013.

Complete vehicle assembly sales increased 3% to $2.35 billion for the nine months ended September 30, 2014

compared to $2.27 billion for the nine months ended September 30, 2013, while complete vehicle assembly 

volumes decreased 7% to approximately 102,000 units.

During the nine months ended September 30, 2014, income from operations before income taxes was $1.86

billion, net income attributable to Magna International Inc. was $1.37 billion and diluted earnings per share were 

$6.26, increases of $471 million, $270 million and $1.52, respectively, each compared to the first nine months of 

2013.

Excluding other expense, after tax for the nine months ended September 30, 2014 and 2013, and the impact of 

the Austrian tax reform for the nine months ended September 30, 2014, income from operations before income 

taxes, net income attributable to Magna International Inc. and diluted earnings per share increased $457 million, 

$299 million and $1.67 respectively, each compared to the nine months ended September 30, 2013.

During the nine months ended September 30, 2014, we generated cash from operations before changes in 

operating assets and liabilities of $2.16 billion, and invested $363 million in operating assets and liabilities. Total 

investment activities for the first nine months of 2014 were $1.07 billion, including $916 million in fixed asset 

additions and a $152 million increase in investments and other assets.

A more detailed discussion of our consolidated financial results for the third quarter and nine months ended 

September 30, 2014 is contained in the Management's Discussion and Analysis of Results of Operations and 

Financial Position and the unaudited interim consolidated financial statements and notes thereto, which are 

attached to this Press Release.

DIVIDENDS

Today, our Board of Directors declared a quarterly dividend of $0.38 with respect to our outstanding Common 

Shares for the quarter ended September 30, 2014. This dividend is payable on December 12, 2014 to 

shareholders of record on November 28, 2014.

OTHER MATTERS

Subject to approval by the Toronto Stock Exchange and the New York Stock Exchange, our Board of Directors 

approved a normal course issuer bid to purchase up to 20 million of our Common Shares, representing 

approximately 9.8% of our public float of Common Shares. This new normal course issuer bid is expected to 

commence on or about November 13, 2014 and will terminate one year later.- 3 -

UPDATED 2014 OUTLOOK

Light Vehicle Production (Units)

North America

Europe

17.0 million

20.2 million

Production Sales

North America

Europe

Asia

 Rest of World

$17.9 - $18.3 billion

$9.7 - $10.0 billion

$1.6 - $1.7 billion

$0.6 - $0.7 billion

Total Production Sales $29.8 - $30.7 billion

Complete Vehicle Assembly Sales $3.1 - $3.3 billion

Total Sales $35.8 - $37.0 billion

Operating Margin(1) Approximately 6.9%

Tax Rate(1,2) Approximately 24.5%

Capital Spending Approximately $1.4 billion

(1) Excluding other expense, net (2) Excluding the impact of the Austrian tax reform

In this 2014 outlook, in addition to 2014 light vehicle production, we have assumed no material acquisitions or 

divestitures. In addition, we have assumed that foreign exchange rates for the most common currencies in which 

we conduct business relative to our U.S. dollar reporting currency will approximate current rates.

ABOUT MAGNA

We are a leading global automotive supplier with 312 manufacturing operations and 83 product development, 

engineering and sales centres in 29 countries. We have over 130,000 employees focused on delivering superior 

value to our customers through innovative processes and World Class Manufacturing. Our product capabilities 

include producing body, chassis, interior, exterior, seating, powertrain, electronic, vision, closure and roof systems 

and modules, as well as complete vehicle engineering and contract manufacturing. Our common shares trade on 

the Toronto Stock Exchange (MG) and the New York Stock Exchange (MGA). For further information about 

Magna, visit our website at www.magna.com.

Original source: file:///C:/Users/Swarburton/Downloads/Magna_2014_Q3_Press_release.pdf