Magna says its outlook to 2022 anticipates continued growth in total sales and improvement in EBIT Margin, both as compared to 2019, despite an expectation of relatively stable light vehicle production levels in North America and Europe during this same time period.
Improvement in EBIT Margin is expected across each operating segment.
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Magna anticipates cumulative free cash flow of around US$5.5bn during the 2020-2022 period, reflecting continued strong earnings and capital spending.
For 2020, as compared to 2019, sales are expected to be negatively impacted by foreign currency translation, reflecting the stronger US dollar, disposition of the Fluid Pressure & Controls business in 2019, net of acquisitions and lower expected light vehicle production in Europe.
Magna’s outlook anticipates a higher EBIT Margin in 2020 reflecting, among other factors, lower spending on ADAS and autonomy, as well as continued operational improvements at a number of facilities.
“We expect our organic consolidated and unconsolidated sales to continue to grow through our outlook period,” said Magna CEO, Don Walker.
“Our growth includes a number of products tied to reduced emissions such as hybrid dual-clutch transmissions, e-drives, battery frames, and our portfolio of lightweighting solutions. Also contributing to this growth are seating systems, electronic systems including ADAS and the expansion of our vehicle assembly business into China.
“Size, scale and our entrepreneurial culture are what differentiate Magna and allow us to invest in new technologies to support our customers through the auto cycle.”
