Magna has posted third-quarter net income of $405m compared to a loss of US$233m in the same period last year.
On a consolidated basis, Magna posted sales of US$9.1bn for the third quarter of 2020, a decrease of 2% from the third quarter of 2019, compared to global light vehicle production, which decreased 4%, reflecting a decline of 5% in Europe and essentially level production in North America.
Adjusted EBIT increased to US$778m in the third quarter of 2020 compared to US$558m in the third quarter of 2019.
The increase mainly reflected higher margin earned on sales, the benefit of COVID-19 related government employee support programmes and the negative impact of the labour strike at General Motors, which was reflected in Magna’s results in the third quarter of 2019.
“Following the significant production declines driven by the COVID-19 pandemic in the first half of the year, we began to experience a recovery in production at the end of the second quarter,” said Magna CEO, Don Walker. “Our strong third quarter results reflect the actions we have taken to reduce discretionary and structural costs in the face of the lower levels of vehicle production.
“We expect our cost structure and operating philosophy to continue to drive profitability and returns as vehicle volumes recover, while allowing us to navigate through challenging times.”