Canadian Manufacturing

Magna International Q4 profit and revenue beat expectations, raises dividend

Sales totalled $10.57 billion, up from $9.40 billion

February 19, 2021  The Canadian Press

AURORA, Ont. — Magna International Inc. raised its dividend as its fourth-quarter profit and revenue rose from a year earlier and topped expectations.

The auto parts company, which keeps its books in U.S. dollars, says it will now pay a quarterly dividend of 43 cents per share, up from 40 cents.

The increased payment to shareholders came as Magna said it earned US$738 million or US$2.45 per diluted share for the quarter ended Dec. 31, up from a profit of US$440 million or US$1.43 per diluted share a year earlier.

Sales totalled $10.57 billion, up from $9.40 billion.

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On an adjusted basis, Magna says it earned US$2.83 per diluted share for the quarter, up from an adjusted profit of $1.41 per diluted share in the fourth quarter of 2019.

Analysts on average had expected an adjusted fourth-quarter profit of US$2.02 and US$10.02 billion in revenue, according to financial data firm Refinitiv.