AURORA, Ontario, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX: MG, NYSE: MGA) today announced the termination of its existing Normal Course Issuer Bid effective since February 15, 2024 (the “Prior NCIB”) and the Toronto Stock Exchange ("TSX") has accepted its Notice of Intention to establish a new Normal Course Issuer Bid (the "Notice"). Pursuant to the Notice, Magna may purchase up to 28,500,000 Magna Common Shares (the "New NCIB"), representing approximately 10% of its public float. As ...

Financial Data and Key Metrics - Consolidated sales for Q3 2024 were $10.3 billion, down 4% YoY, primarily due to lower production in key markets and the divestiture of a controlling interest in metal forming operations in India, partially offset by new program launches [12] - Adjusted EBIT was $594 million, up $17 million from Q2 2024, with an adjusted EBIT margin of 5.8%, in line with Q3 2023 [13] - Adjusted EPS was $1.28, down 12% YoY, impacted by higher income taxes, which cost approximately $0.10 per share [13] - Free cash flow for Q3 2024 was $174 million, a significant increase from $23 million in Q3 2023, reflecting strong capital discipline [13] - The company expects adjusted EBIT margin for 2024 to be in the range of 5.4% to 5.5%, consistent with the original outlook [8] Business Line Performance - The company posted 1% sales growth over the market despite a 4% decline in global vehicle production, driven by new program launches [12] - Operational excellence activities are on track to contribute approximately 75 basis points to margin expansion during 2024 and 2025 [9] - The company reduced gross megatrend engineering spend by $90 million for 2024, while maintaining confidence in long-term positioning [9] Market Performance - North America and China light vehicle production were each down 6%, while Europe declined 2%, resulting in a 4% decline in global production [25] - Detroit 3 North American production was down 12% in Q3 2024, negatively impacting sales [12] - The company expects a slightly higher Canadian dollar, euro, and Chinese RMB for 2024 relative to the previous outlook [34] Strategic Direction and Industry Competition - The company is focused on margin expansion, free cash flow generation, and increasing return of capital to shareholders [21] - Capital expenditure (CapEx) for 2024 is expected to be in the range of $2.2 billion to $2.3 billion, down $100 million from the previous outlook, reflecting continued capital discipline [38] - The company plans to restart meaningful share repurchases in Q4 2024, with a share repurchase plan approved for up to 10% of Magna's public float [20] Management Commentary on Operating Environment and Future Outlook - The company is mitigating industry headwinds, including lower production volumes in core regions, and expects margin expansion in 2024 compared to 2023 [7] - Management remains confident in the company's long-term positioning and ability to reap the rewards of recent investments, despite reducing engineering spend [9] - The company expects free cash flow to be in the range of $600 million to $800 million for 2024, despite the challenging industry environment [33] Other Important Information - The company recognized $196 million of other income from fiscal-related deferred revenue due to the cancellation of a manufacturing agreement in Q3 2024 [24] - The adjusted debt-to-adjusted EBITDA ratio is currently at 1.93x, down from a peak of 2.2x in 2023, and the company is on a path to returning to its targeted range [16] - The company has $3.7 billion in liquidity, including $1.1 billion in cash, providing flexibility to invest for the future and manage through downturns [16] Q&A Session Summary Question: Implied Q4 results and confidence in strong performance - The company expects Q4 sales to be flat YoY, with an adjusted EBIT margin of 6.4% to 6.7%, driven by normal program launches and recoveries in the second half of the year [42][43] Question: Margin outlook for 2025 - The company expects 75 basis points of margin improvement between 2024 and 2025, with operational improvements contributing 35 to 40 basis points [45] Question: CapEx reduction and EV investment - Significant investments in battery enclosures and EV-related capacity are largely complete, with future investments expected to be program-specific rather than infrastructure-related [46][48] Question: Share buyback timeline and leverage - The company accelerated the share buyback timeline due to confidence in execution and free cash flow generation, with leverage expected to return to the target range of 1 to 1.5x by the end of 2025 [52][53][55] Question: Power & Vision segment performance - The Power & Vision segment's margin volatility is driven by equity income, engineering spend, and commercial recoveries, with full-year margin guidance remaining unchanged [58][62] Question: EV pricing and OEM push for lower pricing - The company has not seen OEMs pushing for lower EV pricing yet, as current pricing reflects decisions made two to three years ago [67] Question: Complete Vehicles segment performance - The significant step-up in Q4 revenue and margins for the Complete Vehicles segment is driven by engineering settlements and customer negotiations expected in Q4 [69] Question: Commercial recoveries and tooling expenses - The company expects commercial recoveries to continue in the second half of the year, with tooling expenses being agnostic to volume reductions [71][74] Question: Ford EV program recoveries - Recoveries related to the canceled Ford EV program are expected to be spread over multiple years, with no specific timeline provided [76] Question: Free cash flow outlook - The company expects free cash flow to be in the range of $600 million to $800 million for 2024, with a long-term target of $2 billion by 2026 [104][105] Question: Industry volume assumptions - The company's industry volume assumption of a 2% decline for 2024 is informed by customer build schedules, with visibility limited to 12-13 weeks [95][97] Question: Share buyback magnitude - The company plans to repurchase up to 10% of its public float over the next 12 months, with the exact amount dependent on market conditions [117][118] Question: Commercial recoveries and OEM margin pressure - Commercial recoveries are procedural and embedded in contracts, with no significant risk of rollback even if OEMs face margin pressure [120] Question: Inventory levels - The company has not seen any specific communication from customers regarding inventory levels beyond what is reported in the media [121] Question: Nature of commercial recoveries - Commercial recoveries are a result of contracts not working out as planned, and the company would prefer business to run smoothly without the need for such settlements [123][124]

For the quarter ended September 2024, Magna (MGA) reported revenue of $10.28 billion, down 3.8% over the same period last year. EPS came in at $1.28, compared to $1.46 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $10.57 billion, representing a surprise of -2.73%. The company delivered an EPS surprise of -13.51%, with the consensus EPS estimate being $1.48.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...

Magna (MGA) came out with quarterly earnings of $1.28 per share, missing the Zacks Consensus Estimate of $1.48 per share. This compares to earnings of $1.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -13.51%. A quarter ago, it was expected that this automotive supply company would post earnings of $1.46 per share when it actually produced earnings of $1.35, delivering a surprise of -7.53%.Over the last four quarters, the ...

Global Light Vehicle Production and Sales Impact - Global light vehicle production decreased by 4% in Q3 2024 compared to Q3 2023, with North America and China both down 6%, and Europe down 2%[4] - Total sales decreased by 4% to $10.28 billion in Q3 2024, primarily due to lower global light vehicle production and the end of certain programs[19] Earnings and Profitability - Diluted earnings per share increased to $1.68 in Q3 2024, up from $1.37 in Q3 2023, largely due to $196 million in Other income from deferred revenue related to Fisker warrants[4] - Adjusted diluted earnings per share decreased to $1.28 in Q3 2024 from $1.46 in Q3 2023, reflecting lower sales, higher production input costs, and a higher income tax rate[4] - Net income attributable to Magna International Inc. increased by $90 million to $484 million in Q3 2024 compared to $394 million in Q3 2023, driven by higher income from operations[41] - Net income for the third quarter of 2024 was $508 million, compared to $417 million in the same period of 2023, representing a 21.8% increase[71] - Net income for the three months ended September 2024 was $508 million, up 21.8% from $417 million in the same period in 2023[120] - Earnings per share (EPS) for the three months ended September 2024 were $1.68, compared to $1.37 in the same period in 2023, an increase of 22.6%[120] - Net income for the nine months ended September 30, 2024, was $862 million, compared to $988 million in the same period of 2023[185] Cash Flow and Financial Position - Cash from operating activities decreased by $70 million to $727 million in Q3 2024[4] - Cash provided from operating activities decreased by $70 million in Q3 2024 compared to Q3 2023, primarily due to a $182 million decrease in cash received from customers[72] - Cash used for investing activities in Q3 2024 was $328 million lower than Q3 2023, driven by a $154 million decrease in cash used for fixed assets[74] - Cash resources increased by $0.1 billion to $1.1 billion in Q3 2024, supported by operating activities[79] - Cash and cash equivalents as of September 30, 2024, were $1,061 million, a decrease of 11.4% from $1,198 million as of December 31, 2023[123] - Cash provided from operating activities for the nine months ended September 30, 2024, was $1,724 million, up from $1,571 million in the same period in 2023[125] - Cash and cash equivalents at the end of September 30, 2024, were $1,061 million, up from $1,022 million at the end of September 30, 2023[125] - Cash and cash equivalents decreased to $1,061 million as of September 30, 2024, from $1,198 million at the end of 2023[146] - Cash and cash equivalents decreased to $1,061 million as of September 30, 2024, from $1,198 million at the end of 2023[162] Fisker-Related Impacts - Magna recognized $196 million in Other income related to deferred revenue from Fisker warrants after the termination of the Fisker Ocean SUV manufacturing agreement[4] - Magna faces potential exposure of approximately $50 million related to contractual obligations and cancellation claims from suppliers due to the termination of Fisker Ocean SUV production[12] - Impairment charges related to Fisker assets totaled $287 million for the nine months ended September 30, 2024, including $261 million in Q1 2024 and $26 million in Q2 and Q3 2024[30] - The company recognized $196 million of previously deferred revenue related to Fisker warrants in Q3 2024 due to the termination of the manufacturing agreement[134][139] - Restructuring charges in the Complete Vehicles segment amounted to $22 million in Q1 2024 related to Fisker assembly operations[140] - The company recorded a $33 million impairment charge on Fisker warrants in Q1 2024, reducing their value to nil[138] - Fisker-related impairment charges totaled $287 million for the nine months ended September 30, 2024, including $261 million in Q1, $19 million in Q2, and $7 million in Q3[135] Segment Performance - Sales for Body Exteriors & Structures decreased by 7% ($316 million) to $4.04 billion in Q3 2024, primarily due to the end of production of certain programs and divestitures[51][52] - Power & Vision segment sales increased by 2% ($92 million) to $3.84 billion in Q3 2024, driven by new program launches and customer price increases[57][58] - Adjusted EBIT for Power & Vision increased by 26% ($58 million) to $279 million in Q3 2024, with Adjusted EBIT as a percentage of sales rising to 7.3% from 5.9%[59][60] - Seating Systems sales decreased by 10% ($150 million) to $1.38 billion in Q3 2024, primarily due to lower production on certain programs and the end of production of others[61][62] - Complete Vehicles assembly volumes decreased by 32% (7.4 thousand units) to 15.5 thousand units in Q3 2024, with sales decreasing by 2% ($26 million) to $1.16 billion[65][66] - Adjusted EBIT for Complete Vehicles improved to $27 million in Q3 2024 from a loss of $5 million in Q3 2023, with Adjusted EBIT as a percentage of sales increasing to 2.3%[67] - Corporate and Other segment reported a loss of $36 million in Q3 2024, a $7 million decrease from Q3 2023, primarily due to higher foreign exchange losses[68][69] - Sales for the Body Exteriors & Structures segment decreased by 3% ($401 million) to $12.93 billion for the nine months ended September 30, 2024[82] - Adjusted EBIT for the Body Exteriors & Structures segment decreased by $112 million to $912 million, with Adjusted EBIT as a percentage of sales dropping to 7.1% from 7.7%[86] - Sales for the Power & Vision segment increased by 10% ($1.08 billion) to $11.61 billion for the nine months ended September 30, 2024[87] - Adjusted EBIT for the Power & Vision segment increased by 32% ($138 million) to $575 million, with Adjusted EBIT as a percentage of sales rising to 5.0% from 4.2%[87] - Sales for the Seating Systems segment decreased by 7% ($329 million) to $4.29 billion for the nine months ended September 30, 2024[90] - Adjusted EBIT for Power & Vision increased by $138 million to $575 million, with Adjusted EBIT as a percentage of sales rising to 5.0% from 4.2%[91] - Seating Systems sales decreased by 7% or $329 million to $4.29 billion, primarily due to the end of production of certain programs and lower production on certain programs[93] - Complete Vehicle Assembly Volumes decreased by 33% to 56.4 thousand units, with sales decreasing by 13% or $553 million to $3.78 billion[96] - Adjusted EBIT for Complete Vehicles decreased by $7 million to $74 million, while Adjusted EBIT as a percentage of sales increased to 2.0% from 1.9%[98] - Corporate and Other Adjusted EBIT was a loss of $77 million, a $41 million decrease primarily due to foreign exchange losses and increased investments in research and development[99] - Total sales for the Body Exteriors & Structures segment in Q3 2024 were $4,038 million, with Adjusted EBIT of $273 million[181] - Power & Vision segment reported total sales of $3,837 million and Adjusted EBIT of $279 million in Q3 2024[181] - Seating Systems segment generated $1,379 million in total sales and $51 million in Adjusted EBIT for Q3 2024[181] - Complete Vehicles segment had total sales of $1,159 million and Adjusted EBIT of $27 million in Q3 2024[181] - Corporate & Other segment reported a negative Adjusted EBIT of $36 million in Q3 2024[181] Costs and Expenses - Cost of goods sold decreased by $436 million to $8.83 billion in Q3 2024, primarily due to lower material, direct labor, and overhead costs associated with reduced production sales[21] - Depreciation increased by $26 million to $384 million in Q3 2024 compared to $358 million in Q3 2023, driven by increased capital deployment at new and existing facilities[23] - Amortization of acquired intangible assets decreased by $4 million to $28 million in Q3 2024 compared to $32 million in Q3 2023[24] - SG&A expense decreased by $4 million to $487 million in Q3 2024 compared to $491 million in Q3 2023, primarily due to lower legal fees and provisions against accounts receivable[25] - Net interest expense increased by $5 million to $54 million in Q3 2024 compared to $49 million in Q3 2023, driven by higher short-term borrowing and Senior Notes issued at higher interest rates[26] - Equity income decreased by $27 million to $13 million in Q3 2024 compared to $40 million in Q3 2023, primarily due to reduced earnings from commercial items and lower sales at equity-accounted entities[27] - Adjusted EBIT as a percentage of sales remained stable at 5.8% for both Q3 2024 and Q3 2023, driven by productivity improvements and the impact of the UAW labor strike in 2023[45][46] - Adjusted EBIT as a percentage of sales decreased to 5.1% from 5.2%, primarily due to higher production input costs and reduced earnings on lower assembly volumes[101] - Depreciation and amortization expenses totaled $1,134 million for the nine months ended September 30, 2024, compared to $1,064 million in the same period of 2023[147] - The company incurred $23 million in transaction costs related to the acquisition of the Veoneer Active Safety Business in 2023[145] Investments and Capital Allocation - Magna paid dividends of $138 million in Q3 2024 and approved a new Normal Course Issuer Bid to purchase up to 28.5 million Common Shares, representing approximately 10% of the public float[5] - Adjusted Return on Invested Capital decreased to 9.0% in Q3 2024 from 10.3% in Q3 2023, driven by lower Adjusted After-tax operating profits and higher Average Invested Capital[47] - Adjusted Return on Invested Capital decreased to 8.7% from 10.0%, driven by higher Average Invested Capital and a decrease in Adjusted After-tax operating profits[102] - Average Invested Capital increased by $1.57 billion to $19.06 billion, primarily due to investments in fixed assets and acquisitions[103] - The company approved a new normal course issuer bid to purchase up to 28.5 million Common Shares, representing approximately 10% of the public float[111] - The normal course issuer bid is expected to commence on or about November 7, 2024, and will terminate one year later[111] - The company repurchased 0.1 million shares under a normal course issuer bid for cash consideration of $5 million during the nine months ended September 30, 2024[158] - Dividends paid for the three months ended September 30, 2024, were $138 million, compared to $128 million in the same period in 2023[127] Legal and Contingent Liabilities - The company may be contingently liable for litigation, legal and/or regulatory actions and proceedings and other claims[113] - The company is contesting a customer's claim for $352 million related to two product recalls, with potential liability capped at 50% of the costs[176] - A Tier 2 supplier has filed a claim against the company for estimated damages of €250 million, with ongoing legal proceedings[177] Other Financial Metrics - Income from operations before income taxes increased by $162 million to $700 million in Q3 2024 compared to $538 million in Q3 2023, driven by higher sales and lower costs[38] - Adjusted EBIT for the nine months ended September 30, 2024, was $1.64 billion, compared to $1.68 billion for the same period in 2023[104] - Adjusted diluted earnings per share for the nine months ended September 30, 2024, was $3.72, compared to $4.15 for the same period in 2023[106] - Adjusted After-tax operating profits for the nine months ended September 30, 2024, were $1,246 million, compared to $1,316 million in the same period in 2023[108] - Total Assets as of September 30, 2024, were $32,790 million, compared to $31,675 million as of September 30, 2023[109] - Invested Capital as of September 30, 2024, was $19,530 million, compared to $18,745 million as of September 30, 2023[109] - Adjusted Return on Invested Capital for the nine months ended September 30, 2024, was 8.7%, compared to 10.0% in the same period in 2023[110] - Comprehensive income for the three months ended September 2024 was $812 million, up 267.4% from $221 million in the same period in 2023[122] - Accounts receivable as of September 30, 2024, were $8,377 million, an increase of 6.3% from $7,881 million as of December 31, 2023[123] - Inventories as of September 30, 2024, were $4,592 million, a slight decrease of 0.3% from $4,606 million as of December 31, 2023[123] - Total assets as of September 30, 2024, were $32,790 million, an increase of 1.7% from $32,255 million as of December 31, 2023[123] - Total liabilities as of September 30, 2024, were $20,103 million, an increase of 0.6% from $19,978 million as of December 31, 2023[123] - Shareholders' equity as of September 30, 2024, was $12,687 million, an increase of 3.3% from $12,277 million as of December 31, 2023[123] - Fixed asset additions for the nine months ended September 30, 2024, were $1,469 million, compared to $1,556 million in the same period in 2023[125] - Acquisitions for the nine months ended September 30, 2024, totaled $86 million, significantly lower than $1,475 million in the same period in 2023[125] - Total equity as of September 30, 2024, was $12,687 million, up from $12,010 million at June 30, 2024[127] - Other comprehensive income for the three months ended September 30, 2024, was $304 million, compared to a loss of $196 million in the same period in 2023[127][128] - Stock-based compensation expense for the three months ended September 30, 2024, was $13 million, compared to $12 million in the same period in 2023[127][128] - A bargain purchase gain of $9 million was recorded in Q2 2024 from the acquisition of a business in the Body Exteriors & Structures segment[143] - The company completed the sale of its Russian investments in Q3 2023, resulting in a $16 million loss[144] - Accounts receivable decreased to $11 million for the three months ended September 30, 2024, compared to $35 million in the same period in 2023[148] - Inventories decreased to $68 million for the three months ended September 30, 2024, compared to $160 million in the same period in 2023[148] - The company disposed of its Body Exteriors & Structures operations in India for proceeds of $78 million in cash and $14 million in a convertible note during Q3 2024[149] - Raw materials and supplies inventory decreased to $1,822 million as of September 30, 2024, compared to $1,861 million as of December 31, 2023[150] - Equity method investments decreased to $889 million as of September 30, 2024, compared to $987 million as of December 31, 2023[151] - Preproduction costs related to long-term supply agreements decreased to $739 million as of September 30, 2024, compared to $835 million as of December 31, 2023[152] - Warranty accruals increased to $305 million as of September 30, 2024, compared to $270 million as of January 1, 2024[153] - Short-term borrowings under the U.S. commercial paper program increased to $827 million as of September 30, 2024, compared to $299 million as of December 31, 2023[154] - The company extended the maturity date of its $800 million 364-day syndicated revolving credit facility to June 24, 2025[155] - Net unrealized gain (loss) for the quarter ending September 30, 2024, was $5 million, compared to a loss of $13 million in the same period in 2023[161] - The company's supplier financing program had outstanding amounts of $113 million as of September 30, 2024, down from $132 million at the end of 2023[163] - The net book value of the company's Senior Notes was $4.5 billion, with an estimated fair value of $4.6 billion as of September

Sales of $10.3 billion decreased in-line with the 4% reduction in global light vehicle productionDiluted earnings per share were $1.68, up $0.31, largely reflecting recognition of Fisker deferred revenueAdjusted diluted earnings per share were $1.28, down $0.18, including $0.10 due to a higher income tax rateNormal Course Issuer Bid to purchase up to 10% of our public float of Common Shares, with purchases expected to commence in the fourth quarter of 2024 AURORA, Ontario, Nov. 01, 2024 (GLOBE NEWSWIRE) -- ...

In its upcoming report, Magna (MGA) is predicted by Wall Street analysts to post quarterly earnings of $1.48 per share, reflecting an increase of 1.4% compared to the same period last year. Revenues are forecasted to be $10.57 billion, representing a year-over-year decrease of 1.1%. Over the last 30 days, there has been a downward revision of 4.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial for ...

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AURORA, Ontario, Sept. 30, 2024 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX:MG) (NYSE:MGA) MAGNA INTERNATIONAL INC. THIRD QUARTER 2024 RESULTS WEBCAST FRIDAY – NOVEMBER 1, 2024 8:00 AM ET LIVE AUDIO WEBCAST Webcast registration: https://events.q4inc.com/attendee/431432937 DIAL IN DETAILS Participant Toll-Free Dial-In: 1-800-715-9871 Participant Toll Dial-In: 1-646-307-1963 Conference ID: 9829976 Slide presentation will be available on our website Investors | Magna prior to the call REBROADCAST INFORMA ...

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