Magna International cuts outlook for the year due to increased costs
Magna says profits are down this year compared to the same period last year.
Exporting & Importing
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.