Magna International cuts outlook for the year due to increased costs

Magna International Inc. cut its outlook for the year due to lower than expected global auto production and increased costs as it reported a first-quarter profit of US$364 million.

The Aurora, Ont.-based auto parts company, which keeps its books in U.S. dollars, says the profit amounted to US$1.22 per diluted share for the quarter ended March 31, down from a profit of US$615 million or US$2.03 per diluted share a year earlier.

Sales totalled US$9.64 billion, down from US$10.18 billion in the first three months of 2021.

On an adjusted basis, Magna says it earned US$1.28 per diluted share, down from an adjusted profit of US$1.86 per diluted share a year earlier.

In its outlook for the full year, Magna says it now expects sales to total between US$37.3 billion and US$38.9 billion, down from an earlier forecast for between US$38.8 billion and US$40.4 billion.

The company also says it expects net income attributable to Magna to be between US$1.3 billion and US$1.5 billion, down from its previous expectations for between US$1.7 billion and US$1.9 billion.