Canadian Manufacturing

Magna International cuts 2019 outlook after GM strike in U.S. cuts volume

Magna also estimates 2019 net income of between $1.8 billion and $1.9 billion, a $200 million cut from the top end

November 8, 2019  The Canadian Press

AURORA, Ont.—Magna International Inc. has cut its outlook for the year on lost volume from the nearly six-week strike by GM workers in the United States.

The company, which reports in U.S. dollars, says it now expects total sales this year of between $38.7 billion and $39.8 billion, a reduction of $1.3 billion on the top end of the range.

Magna also estimates 2019 net income of between $1.8 billion and $1.9 billion, a $200 million cut from the top end.

For the third quarter, the company reported a net loss of $233 million, or 75 cents per share, compared with earnings of $554 million or $1.62 per share for the same quarter last year.

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The company recorded a $537 million non-cash impairment charge related its German transmission business Getrag in the quarter.

Adjusted earnings came in at $1.41 per share for the quarter ending Sept. 30, compared with $1.56 per share for the same quarter last year.

Analysts had expected $1.34 in adjusted earnings per share according to financial markets data firm Refinitiv.