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Magna shares lift to greater highs on Q2 net income gains

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Shares of Magna International (TSX:MG) (NYSE:MGA) are on the rise after posting double-digit gains on both the top and bottom lines in the second quarter on the strength of North American vehicle production. 

Net income for the Aurora, Ontario-based auto parts manufacturer increased 19 per cent to $415 million, compared to $349 million in the second quarter of 2012.

Sales rose 16 per cent to $8.96 billion from $7.73 billion in the same prior-year period, ahead of the $8.8 billion composite analyst estimate.

Adjusted EBITDA in North America, which accounted for three-quarters of the total, rose to $422 million from $415 million last year, while in Europe adjusted EBITDA nearly doubled to $120 million from $65 million despite weak auto production on the continent. 

Magna, which supplies parts to the world's biggest automakers, expects between $33.3 billion and $34.7 billion of sales in fiscal 2013. The range is about $700 million higher than Magna's outlook in May when its first-quarter results came out.

The stock rose 2.7 per cent in early Friday's trading, hitting a new intraday record.  Reported by Proactive Investors 22 hours ago.

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