Magna has unveiled fourth-quarter net income up 16% to US$556m, while also posting record sales increasing 12% to US$10.4bn.
The sales increase was achieved in a period in which European light vehicle production increased 7% and North American light vehicle production decreased 5%, each relative to the fourth quarter of 2016.
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Magna complete vehicle assembly sales increased 129% in the fourth quarter of 2017 largely reflecting the 2017 launches of the BMW 5-Series and Jaguar E-Pace at the assembly facility in Graz, Austria.
“I’m pleased with our 2017 results which were records for sales, earnings per share, and operating cash flow,” said Magna CEO, Don Walker. “Looking forward, we continue to execute our strategy for long-term growth focused on the future of mobility.
“We have also realigned our management structure to further enhance collaboration and strengthen our position as a provider of mobility solutions.”
Adjusted EBIT in the fourth quarter of 2017 increased 16% to US$809m, compared to US$696m for the fourth quarter of 2016. Europe and Asia segments each posted higher adjusted EBIT and adjusted EBIT as a percentage of sales, compared to the fourth quarter of 2016.
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By GlobalDataFor the year ended 31 December, 2017, Magna posted record sales of US$38.95bn, an increase of 7% from the year ended December 31, 2016. European light vehicle production increased 4% and North American light vehicle production decreased 4% in 2017 compared to 2016.
Income from operations before income taxes was US$3bn, an increase of US$219m. Net income attributable to Magna International was US$2.21bn.
Adjusted EBIT increased 7% to US$3.11bn in 2017, compared to US$2.90bn for 2016. Asia and Rest of World segments each posted higher adjusted EBIT and adjusted EBIT as a percentage of sales, compared to 2016.
“Our strong earnings growth and cash flow have enabled us to return significant amounts of capital to shareholders,” added Magna CFO, Vince Galifi. “Our 20% dividend increase, the ninth consecutive annual dividend increase, reflects the confidence both management and our board have in Magna’s future.”
