Canadian Manufacturing

Magna expects sales to be hurt by sale of fluid pressure and controls business

The auto parts maker signed a deal in September to sell its fluid pressure and controls business to Hanon Systems, a South Korea-based company


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AURORA, Ont.—Magna International Inc. says it expects its sales this year will be weighed down by a stronger U.S. dollar and the sale of its fluid pressure and controls business.

The Ontario-based auto parts maker, which keeps its books in U.S. dollars, says it expects total sales of US$40.2 billion to $42.4 billion for 2019.

Magna expects net income for the year to total $2.1 billion to $2.3 billion.

Capital spending for 2019 is forecast to be about $1.7 billion.

Magna signed a deal in September to sell its fluid pressure and controls business to Hanon Systems, a South Korea-based company, for roughly $1.23 billion.

The deal is expected to close in the first quarter of 2019.

News from © Canadian Press Enterprises Inc. 2019

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