Magna International reports a Q2 loss and records impairment charge in Russia
The Ontario-based auto parts maker, which keeps its books in U.S. dollars, says it lost US$156 million or 54 cents per diluted share in the second quarter.
Magna International Inc. posted a loss in its most recent quarter as it recorded a non-cash impairment charge related to its investment in Russia.
The Ontario-based auto parts maker, which keeps its books in U.S. dollars, says it lost US$156 million or 54 cents per diluted share in the second quarter, which includes $1.24 of non-cash impairment charges related to the company’s investment in Russia.
The results compared with earnings of US$424 million or US$1.40 per diluted share in the same quarter of 2021.
Adjusted net income fell to US$243 million or 83 cents per share, compared with US$426 million or US$1.40 per share a year earlier.
Magna says sales for the three months ended June 30 were US$9.36 billion, a 3.6 per cent increase from US$9.03 billion last year.
The company says higher sales were mainly due to a two per cent increase in global light vehicle production, largely driven by a 14 per cent increase in North America.
“Our second quarter results were largely in line with our expectations, excluding the impairment of our investment in Russia,” Magna CEO Swamy Kotagiri said in a statement on Jul. 29.
“While we anticipate ongoing industry disruption through at least the remainder of 2022, we expect light vehicle production and our earnings to increase in the second half of the year, compared to the first half.”