AURORA, Ont. – Auto parts maker Magna International Inc. reported financial results for the second quarter.
Net income attributable to Magna International Inc. was US$452 million for the second quarter of 2019 compared to $626 million in the second quarter of 2018.
“Second quarter results came in slightly ahead of our expectations and our sales once again outpaced global vehicle production,” said Don Walker, Magna’s Chief Executive Officer. “We have been taking steps to optimize our business in response to lower industry volumes. Our 2019 outlook is largely unchanged despite our expectation of continued challenging automotive market conditions.”
Net income amounted to $1.42 per share, while revenue was US$10.13 billion.
Excluding Other expense (income), net from both periods, net income attributable to Magna International Inc. decreased $81 million in the second quarter of 2019 compared to the second quarter of 2018.
On a consolidated basis, Magna posted sales of $10.13 billion for the second quarter of 2019, a decrease of 1% from the second quarter of 2018, which compared favourably to global light vehicle production that decreased 6%.
Excluding the impact of foreign currency translation and divestitures net of acquisitions, sales increased 5%, and by segment: Complete Vehicles, Seating and Power & Vision increased 49%, 3% and 1%, respectively, while Body Exteriors & Structures decreased 4%.
Magna said results came in slightly ahead of expectations in the second quarter of 2019, driven by our Body Exteriors & Structures, Power & Vision and Complete Vehicles segments. Magna’s Seating segment was below expectations mainly due to continued launch costs and inefficiencies at a new facility, reports the company.