Magna International, one of the world’s biggest auto-parts manufacturers, said on Wednesday it expects higher sales and earnings for 2004, according to Reuters, which noted that the firm was due to make a presentation to analysts in Detroit on Thursday.
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In an outlook released after stock markets closed, the Aurora, Ontario-based company forecast 2004 sales of between $17.9 billion and $18.8 billion, the news agency said.
By comparison, Reuters added, Magna in November forecast sales for 2003 at between $14.6 billion and $14.9 billion based on vehicle production volumes of about 15.9 million units in North America and about 16.0 million units in Europe.
The 2004 forecast is based on light vehicle production volumes of about 16.1 million units in North America and about 16.4 million units in Europe, the report said.
“We anticipate a higher level of sales which is expected to contribute to earnings growth for Magna,” chief executive Belinda Stronach said in a statement cited by Reuters, which noted that Stronachdid not say by how much profit would increase this year.
According to Reuters, forecasts for Magna’s 2004 earnings per share from operations, prepared by 18 analysts polled by Thomson/First Call, ranged from $6.58 to $7.58.
For 2003, Magna said in November it expected earnings per share from operations of between $6.12 and $6.32, the news agency added.
Reuters said the company, which gets much of its contracts from North America’s Big Three carmakers, also said it expects to spend between $800 million and $850 million on fixed assets in 2004.
For the year, Magna expects its average dollar content per vehicle to range between $575 and $595 in North America and between $465 and $490 in Europe, Reuters added.
