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) -- ...

Core Viewpoint - Magna (MGA) is expected to report quarterly earnings of $1.48 per share, a 1.4% increase year-over-year, with revenues projected at $10.57 billion, reflecting a 1.1% decrease compared to the previous year [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 4.4%, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue and Sales Projections - Analysts predict 'Sales- Body Exteriors & Structures' will be $4.32 billion, a year-over-year decrease of 0.7% [5] - 'Sales- Power & Vision' is expected to reach $3.83 billion, reflecting a year-over-year increase of 2.2% [5] - 'Sales- Complete Vehicles' is projected at $1.13 billion, indicating a year-over-year decline of 4.9% [5] - 'Sales- Seating Systems' is anticipated to be $1.44 billion, a decrease of 6.2% from the prior year [6] Adjusted EBIT Estimates - 'Adjusted EBIT- Body Exteriors & Structures' is expected to be $345.33 million, down from $358 million in the same quarter last year [6] - The consensus for 'Adjusted EBIT- Power & Vision' stands at $228.09 million, compared to $221 million reported in the same quarter last year [7] - 'Adjusted EBIT- Seating Systems' is projected at $54.31 million, down from $70 million in the same quarter last year [7] Stock Performance - Shares of Magna have changed by +1.6% over the past month, compared to a +1.8% move of the Zacks S&P 500 composite [7] - With a Zacks Rank 5 (Strong Sell), Magna is expected to underperform the overall market in the near future [7]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Core Viewpoint - Magna International Inc. is scheduled to release its third quarter 2024 results on November 1, 2024, at 8:00 AM ET, which will be accessible via a live audio webcast [1] Group 1: Event Details - The webcast registration link is provided for interested participants [1] - Dial-in details include a toll-free number (1-800-715-9871) and a toll number (1-646-307-1963) with a conference ID of 9829976 [1] - A slide presentation will be available on the company's website prior to the call [1] Group 2: Rebroadcast Information - A replay of the call will be available two hours after the live event until November 8, 2024 [1] - The toll-free dial-in for the rebroadcast is 1-800-770-2030, and the toll dial-in is 1-609-800-9909, using the same conference ID [1] Group 3: Investor Contacts - Louis Tonelli serves as the Vice-President of Investor Relations, with contact details provided [1] - Nancy Hansford is the Executive Assistant for Investor Relations, also with contact information included [1]

Investment Strategy - Geraldine Weiss advocated for investing in stocks with a dividend yield above their historical average, based on the belief that a temporarily depressed stock price can lead to higher dividend yields [1] - The strategy is contrarian, focusing on companies that may be undervalued due to short-term issues [1] Stock Recommendations - **U.S. Bancorp**: A major regional bank with a current dividend yield of 4.3%, which is significantly above its historical average. The stock price has decreased from a high of $63 to around $45 due to the Federal Reserve's interest rate hikes, but the outlook for 2025 and 2026 is positive as rates are expected to stabilize [2][3] - **Magna International**: A leading auto parts manufacturer with a dividend yield of 4.4%, nearly double its 10-year median, despite a 28% drop in stock price this year. Revenue and earnings have increased, indicating potential resilience [4][5] - **Walgreens Boots Alliance**: Currently has a high dividend yield of 13.6%, but the stock has plummeted from over $96 to just above $9. The company faces significant challenges, including high debt levels and industry competition, yet the low price-to-earnings ratio suggests potential for recovery [5][6] - **UGI Corp.**: A utility company with a dividend yield of 6.0%, more than double its typical yield over the past decade. The company distributes natural gas and propane, and has a strong market presence in the U.S. and abroad [7][8] - **Greif Inc.**: Specializes in industrial packaging with a dividend yield of 4.5%, above its 10-year median of 3.3%. The company has shown strong profitability with a return on equity of 15% or better in five of the last six years [9] Market Context - The banking industry is expected to recover as the Federal Reserve shifts its monetary policy, which may benefit banks like U.S. Bancorp in the coming years [3] - The auto parts sector, represented by Magna International, is facing stock price declines despite operational growth, indicating potential market mispricing [5] - The drugstore industry, exemplified by Walgreens, is grappling with reimbursement issues and competition, but the current stock valuation may present a buying opportunity [6] - Utility companies like UGI are benefiting from stable demand for essential services, reflected in their robust dividend yields [8]

Core Viewpoint - Magna International Inc. (MGA) is facing significant challenges due to lower-than-expected vehicle production in Europe, program cancellations, and substantial investments in advanced technologies, leading to a recommendation to avoid the stock [1]. Financial Outlook - Magna has revised its 2024 and 2026 sales and adjusted EBIT margin outlook downward, expecting 2024 revenues to be between $42.5 billion and $44.1 billion, down from the previous guidance of $42.6 billion to $44.2 billion [2]. - The adjusted EBIT margin for 2024 is now projected to be in the range of 5.4% to 5.8%, reduced from the earlier estimate of 5.4% to 6.0% [3]. - For 2026, sales are expected to be between $44 billion and $46.5 billion, down from the previous estimate of $48.8 billion to $51.2 billion, with an adjusted EBIT margin forecasted at 6.7% to 7.4%, down from 7% to 7.7% [3]. Debt Levels - As of June 30, 2024, Magna's long-term debt increased to $4,863 million from $4,175 million as of December 31, 2023, with a debt to capitalization ratio of approximately 29%, higher than the industry average of 23% [3]. Customer Concentration - Magna's growth may be hindered by its concentrated customer base, with a significant portion of sales dependent on six major clients: General Motors, BMW, Stellantis, Daimler, Ford, and Volkswagen [4]. - If market share shifts away from these top customers and the company fails to grow sales with other OEMs, profitability could be negatively impacted [4]. Investment in Technology - The company plans to invest heavily in the development of technologically advanced products, with capital spending projected at approximately $2.3 billion to $2.4 billion in 2024, which may strain near-term cash flows [5]. - High research and development expenses, along with costs related to advanced driver-assistance systems, are expected to negatively affect near-term margins [5].

MAGNA INTERNATIONAL INC. SECOND QUARTER 2024 RESULTS WEBCAST LIVE AUDIO WEBCAST Webcast registration: https://events.q4inc.com/attendee/760182349 Participant Toll-Free Dial-In: 1-800-715-9871 Participant Toll Dial-In: 1-646-307-1963 Conference ID: 9829976 REBROADCAST INFORMATION Replay available 2 hours after the call until August 9, 2024 INVESTOR CONTACT Louis Tonelli, Vice-President, Investor Relations louis.tonelli@magna.com 905-726-7035 AURORA, Ontario, July 02, 2024 (GLOBE NEWSWIRE) -- Magna Internatio ...

Group 1 - Magna International Inc. will host a second quarter 2024 results webcast on August 2, 2024, at 8:00 AM ET [1] - Participants can access the conference via toll-free and toll dial-in numbers provided [1] - A replay of the webcast will be available for two hours after the call until August 9, 2024 [1] Group 2 - The company is listed on both the TSX and NYSE under the ticker symbols MG and MGA, respectively [2] - Webcast registration is available online, and a slide presentation will be accessible on the company's investor relations website prior to the call [2] - Investor contact information is provided for further inquiries, including the Vice-President of Investor Relations [2]

Magna's reconfigurable seating system allows the vehicle to adapt to the consumer, instead of forcing the consumer to adapt to the vehicle. The integration of power swivel seats with nearly two meters of power long rails, shared by front and rear rows and the center console, creates a 270-degree rotation of both the driver and front passenger seats. This configuration also increases the seat track articulation distance of both front and rear seats, resulting in a more versatile and adaptable seating arrange ...