Magna: Significant Increase in Sales and Earnings
Magna International Inc. today reported financial results for nine months ended September 30, 2010.
Magna: Significant Increase in Sales and Earnings / Picture: © Magna
The Austrian/Canadian component supplier Magna posted sales of EUR 12.5 billion ($17.5 billion) for the nine months ended September 30, 2010, an increase of 47% from the nine months ended September 30, 2009. This higher sales level was a result of increases in North American, European and Rest of World production sales, complete vehicle assembly sales and tooling, engineering and other sales.
During the nine months ended September 30, 2010, vehicle production increased 54% to 9.0 million units in North America and 14% to 9.8 million units in Europe, each compared to the first nine months of 2009.
Complete vehicle assembly sales increased 24% to EUR 1.14 billion ($1.6 billion) for the nine months ended September 30, 2010 compared to EUR 0.93 billion ($1.3 billion) for the nine months ended September 30, 2009, while complete vehicle assembly volumes increased 50% to approximately 61,000 units.
During the nine months ended September 30, 2010, operating income was EUR 696 million ($975 million), net income was EUR 540.7 ($757 million) and diluted earnings per share were EUR 4.72 ($6.61), increases of EUR 1.0 billion ($1.4 billion), EUR 0,79 billion ($1.1 billion) and EUR 6.98 ($9.78), respectively, each compared to the first nine months of 2009.
During the nine months ended September 30, 2010, Magna generated cash from operations before changes in non cash operating assets and liabilities of EUR 0.93 billion ($1.3 billion), and invested EUR 230 million ($322 million) in non cash operating assets and liabilities.
Don Walker, Magna's Chief Executive Officer commented: "We continue to generate strong earnings and cash flow, even at historically low levels of vehicle production in our primary markets of North America and Western Europe. The eventual recovery of vehicle production in these markets, combined with our expansion plans in other regions around the world, our strong balance sheet, and our continued efforts to improve underperforming operations all leave us very optimistic about Magna's future operating results."
For the full year 2010, Magna expects sales to be around EUR 17,14 billion ($24.0 billion), based on full year 2010 light vehicle production volumes of approximately 11.8 million units in North America and approximately 12.6 million units in Europe. This 2010 outlook assumes no significant acquisitions or divestitures.