Aurora, Ont.-based company's revenue outlook below US$37.5 billion analysts had been estimating for 2015
AURORA, Ont.—Magna International Inc. estimates it will have between US$34.4- and US$36.1 billion of sales this year, about half of it from auto parts sales in North America.
The rest of Magna’s revenue this year will come from autoparts sales in Europe, Asia and other regions, and between US$2.4- and US$2.7 billion from complete vehicle assembly.
The company’s revenue outlook, which doesn’t include the impact of acquisitions, is below the US$37.5 billion that analysts had been estimating for 2015, according to Thomson Reuters data.
Canada’s largest auto parts company, which reports in American dollars, also estimates between US$1.5- and US$1.7 billion of capital spending this year, which would be above the US$1.4 billion that Magna has previously projected for 2014.
The company hasn’t issued its 2014 financial results yet but analysts have estimated US$36.3 billion of annual revenue, including about US$9 billion in the fourth quarter, according to Thomson Reuters data.
The analyst estimate is about the mid-point of Magna’s guidance for 2014, issued Nov. 5, which called for between US$35.8- and US$37 billion of total sales last year, including between US$17.9- and US$18.3 billion from North America.
The 2015 guidance suggests Magna expects about the same level of North American annual sales this year, at between US$17.6- and US$18.2 billion, but a decline in Europe, its second-biggest market.
Europe is expected to generate between US$9- and US$9.4 billion of sales this year, which would be below the 2014 estimate of US$9.7- to US$10 billion issued in November.