Magna International Inc. (TSE:MG), North America’s largest auto-parts supplier, reported a 31 percent increase in fourth-quarter profit as vehicle production grew in North America and Europe. It also lifted its dividend.
Net income attributable to the company rose to $458 million, or $2.03 a share, in the three months ended Dec. 31, from $351 million, or $1.49 a share, in the year-earlier period, the Aurora, Ontario-based company said in a statement today.
Analysts on average were looking for four-quarter profit of $1.55 per share.
Revenue climbed 14 percent to $9.17 billion.
Magna said sales revenue improved as vehicle production increased 6 percent in North America and 5 percent in Europe in the fourth quarter, offsetting a decline in the company's "rest of the world" production sales. Production sales in Asia increased, it said.
Complete vehicle assembly sales increased 13 percent to $788 million, from $697 million a year earlier, while complete vehicle assembly volumes increased jumped 17 percent to approximately 37,000 units.
Magna raised its quarterly dividend to 38 cents per share from 32 cents per share, payable on March 28 to shareholders of record on March 14.
“We maintained our solid performance in North America and made further progress in improving profitability in Europe,” Chief Executive Officer Don Walker said in the statement. “Recent investments in Asia have begun to yield returns, even while we continue to invest in the region.”
Looking ahead, Magna cut its 2014 forecast for sales in its core vehicle parts business, but maintained its total sales outlook.
The company said it projected sales of $28.4 billion-$29.7 billion in its parts business, slightly lower than the $28.6 billion-$29.9 billion estimated in January.
Magna raised its sales forecast for the complete vehicle business to $2.8 billion-$3.1 billion from $2.6 billion-$2.9 billion.
Magna's shares closed up 1.5 percent to C$98.57 on Feb. 28 in Toronto. The stock has advanced 72 percent in the past 12 months, outperforming the benchmark S&P/TSX Composite index (TSE:OSPTX) which has gained approximately 11 percent.
Reported by Proactive Investors 15 hours ago.
Net income attributable to the company rose to $458 million, or $2.03 a share, in the three months ended Dec. 31, from $351 million, or $1.49 a share, in the year-earlier period, the Aurora, Ontario-based company said in a statement today.
Analysts on average were looking for four-quarter profit of $1.55 per share.
Revenue climbed 14 percent to $9.17 billion.
Magna said sales revenue improved as vehicle production increased 6 percent in North America and 5 percent in Europe in the fourth quarter, offsetting a decline in the company's "rest of the world" production sales. Production sales in Asia increased, it said.
Complete vehicle assembly sales increased 13 percent to $788 million, from $697 million a year earlier, while complete vehicle assembly volumes increased jumped 17 percent to approximately 37,000 units.
Magna raised its quarterly dividend to 38 cents per share from 32 cents per share, payable on March 28 to shareholders of record on March 14.
“We maintained our solid performance in North America and made further progress in improving profitability in Europe,” Chief Executive Officer Don Walker said in the statement. “Recent investments in Asia have begun to yield returns, even while we continue to invest in the region.”
Looking ahead, Magna cut its 2014 forecast for sales in its core vehicle parts business, but maintained its total sales outlook.
The company said it projected sales of $28.4 billion-$29.7 billion in its parts business, slightly lower than the $28.6 billion-$29.9 billion estimated in January.
Magna raised its sales forecast for the complete vehicle business to $2.8 billion-$3.1 billion from $2.6 billion-$2.9 billion.
Magna's shares closed up 1.5 percent to C$98.57 on Feb. 28 in Toronto. The stock has advanced 72 percent in the past 12 months, outperforming the benchmark S&P/TSX Composite index (TSE:OSPTX) which has gained approximately 11 percent.
Reported by Proactive Investors 15 hours ago.