Magna has recorded third-quarter sales down 3% to US$9.3bn, following the strike at General Motors.
Excluding foreign currency translation and divestitures net of acquisitions, sales rose 2%.
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The 2019 outlook is reduced largely to reflect the estimated impact of the GM strike and higher launch costs.
“While we recorded significant non-cash impairment charges this past quarter related to our investment in Getrag’s equity accounted joint ventures, we expect further strong growth in Getrag’s wholly-owned operations,” said Magna CEO, Don Walker.
“For example we recently announced a business award from BMW, the largest production order for transmission technologies in Magna’s history for dual-clutch transmissions, including hybrid variants.”
For his part, Magna CFO, Vince Galifi added: “All things considered, our third quarter earnings were relatively in line with our expectations. However, we have made some adjustments to our outlook largely to reflect estimated lost volume related to the GM strike and higher launch costs.
“Importantly, our expectations for free cash flow of US$1.9bn-US$2.1bn for this year are unchanged.”
