Magna International said results came in slightly ahead of its expectations in the second quarter of 2019, driven by body exteriors & structures, power & vision and complete vehicles segments.
The seating segment was below mainly due to continued launch costs and inefficiencies at a new factory.
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The Canadian based supplier posted sales of US$10.13bn for Q2 2019, a decrease of 1% year on year, which, it said, compares favourably to global light vehicle production that decreased 6%.
Adjusted EBIT fell 16% to $677m resulting in an adjusted EBIT as a percentage of sales of 6.7% compared to 7.8%.
This was due mainly to lower margins in the power & vision segment, largely driven by higher engineering and other costs in the ADAS business, and lower equity income, seating segment primarily as a result of higher launch costs and inefficiencies at a new factory, lower equity income, and higher commodity costs and body exteriors & structures segment primarily as a result of reduced earnings due to lower sales.
Income from operations before income taxes was $595m compared to $819m.
Net income was $452m compared to $626m.
Earnings per share decreased to $1.42 compared to $1.77.
Magna booked sales of $20.72bn for the first half of 2019, a decrease of 2% as global light vehicle production fell 5%.
Income from operations before income taxes was $1.96bn, net income was $1.56bn and earnings per share were $4.83, increases of $293m, $272m and $1.23, respectively, each compared to the first six months of 2018.
CEO Don Walker said: "Second quarter results came in slightly ahead of our expectations and our sales once again outpaced global vehicle production.
"We have been taking steps to optimise our business in response to lower industry volumes.
"Our 2019 outlook is largely unchanged despite our expectation of continued challenging automotive market conditions."
