Magna's reconfigurable seating system offers flexibility for more in-cabin space "The global mobility landscape is continuing to evolve, with vehicles increasingly becoming a flexible mobile living space for today's road users," said John Wyskiel, President Magna Seating. "With our strong R&D and innovation capabilities in China and around the world, we can respond quickly to the needs of our customers and create more localized innovative solutions to meet their expectations. The reconfigurable seating solu ...

Image Source: Zacks Investment Research Weak Q1 Results: Magna reported first-quarter 2024 adjusted earnings of $1.08 per share, which declined from the year-ago quarter's $1.11 per share and also missed the Zacks Consensus Estimate of $1.28. Sales, although inching up 2.7% year over year, fell short of the consensus mark. Free cash flow was negative $270 million in the quarter as the company continues to invest heavily in the development of technologically advanced products. While that would indeed create ...

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES AURORA, Ontario, May 27, 2024 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX: MG; NYSE: MGA) today announced that it has entered into an agency agreement providing for the issuance, by way of private placement in each of the provinces of Canada, of CAD$450 million aggregate principal amount of senior unsecured notes due 2029. The notes will bear interest at an annual rate of 4.80% and will mature on May 30, 2029. The of ...

RBC Capital Markets, Scotiabank, TD Securities and CIBC Capital Markets are acting as joint bookrunners for the offering. This release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities, in any province or jurisdiction in which such an offer, solicitation or sale would be unlawful. The notes have not been and will not be qualified for distribution to the public by prospectus under the securities laws of any province or t ...

Shares of Magna International (MGA) have declined 4.2% since the company reported first-quarter 2024 results.  The auto equipment provider reported adjusted earnings of $1.08 per share, which declined from the year-ago quarter’s $1.11 per share and also missed the Zacks Consensus Estimate of $1.28. The underperformance is attributed to lower-than-expected adjusted EBIT from Body Exteriors & Structures and Power & Vision segments.Net sales increased 2.7% from the prior-year quarter to $10.97 billion but fell ...

AURORA, Ontario, May 09, 2024 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX:MG, NYSE:MGA) today announced voting results from its 2024 annual meeting of shareholders held on May 9, 2024. A total of 230,328,916 Common Shares or 80.18% of our issued and outstanding Common Shares were represented in person or by proxy at the meeting. Shareholders voted in favour of each item of business, as follows: a.  Election of Directors NomineeVotes FORNomineeVotes FORMary S. Chan95.27%Mary Lou Maher98.16%Hon. V. Pete ...

It hasn’t been a pleasant 2024 for vehicle parts maker Magna International (NYSE:MGA), who also happens to be the contract manufacturer for the struggling Fisker (OTCMKTS:FSRN). Magna produces the Fisker Ocean, an electric vehicle (EV) SUV.Magna CEO Swami Kotagiri disclosed in the company’s first-quarter earnings call that “production of the vehicle is currently idled” and that Magna’s guidance “assumes no further production” of the Ocean.As a result, 2024 revenue guidance was lowered by about $400 million, ...

Financial Data and Key Metrics Changes - Adjusted EBIT was $469 million, with an adjusted EBIT margin of 4.3%, up 10 basis points from the previous year [16][59] - Consolidated sales reached $11 billion, a 3% increase compared to the first quarter of 2023, while free cash flow used in the quarter was $270 million, slightly improved from $279 million in the same period last year [34][35] - The company maintained its adjusted EBIT margin outlook for 2024 despite the negative impact from the Fisker Ocean production halt [28][76] Business Line Data and Key Metrics Changes - North American light vehicle production increased by 2%, while production in China rose by 11%, and Europe saw a decline of 2%, resulting in a net global production increase of 2% [18] - The sales increase was primarily driven by new program launches and higher global vehicle production, offset by lower complete vehicle assembly volumes and foreign currency translation impacts [19] Market Data and Key Metrics Changes - The company anticipates a relatively flat vehicle production environment in key markets, particularly North America and Europe [10] - The outlook for production in China has been slightly increased, while assumptions for North America and Europe remain unchanged [75] Company Strategy and Development Direction - The company is focusing on operational excellence activities, which are expected to contribute approximately 75 basis points to margin expansion over the next two years [9][12] - Electrification remains a key industry trend, with the company adopting a targeted and deliberate EV strategy [13] - The company is actively managing costs and optimizing engineering spend, with a reduction of about $50 million from previous forecasts [12][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining the adjusted EBIT margin outlook for 2024, despite challenges from the Fisker Ocean program and other delays [28][76] - The company is assessing the impacts of OEM electrification plans on its business to optimize investments and capacity plans [97] - Management noted that inflation, particularly in labor costs, continues to be a challenge, but efforts are being made to mitigate these increases [29] Other Important Information - The company fully impaired its operating assets and warrants related to the Fisker Ocean program, totaling $294 million [11] - The company has $195 million in deferred revenue associated with the Fisker contract, which could offset the impairments in future periods [11] Q&A Session Summary Question: Can you provide more detail on conversations with customers adjusting their EV strategies? - Management indicated ongoing discussions with customers regarding volume assumptions and flexibility in contract structures, emphasizing the importance of managing risks and opportunities [21][24] Question: Update on the Veoneer acquisition and sales tracking? - Management confirmed that the Veoneer acquisition is on track for expected synergies, with no material differences in projections despite current lower sales [47][48] Question: Clarification on changes in guidance for sales and EBIT? - Management confirmed that the guidance reflects a $1.2 billion reduction in sales, primarily due to the Fisker Ocean and G-Wagen impacts, with offsets from lower engineering costs and input costs [71][72] Question: How does the company plan to allocate spare capacity after Fisker? - Management noted ongoing conversations with various automakers to address existing capacity and indicated that the business typically experiences lulls but expects to recover [132] Question: What is the expected margin cadence for the rest of the year? - Management indicated that margins are expected to improve sequentially, with benefits from operational efficiencies and commercial recoveries anticipated in the second half of the year [121][122]

+3% Adjusted EBIT & Margin ($Millions) • Non-recurring • Volumes & Other Operational Q1 2024 Financial Results Investment-grade ratings from Moody's, S&P, DBRS On-track to be back in target range during 2025 Q1 2024 Results 19 Changed from previous Outlook Updated 2024 Outlook Changed from previous Outlook 1 Adjusted EBIT Margin is the ratio of Adjusted EBIT to Total Sales 2 Income Tax Rate has been calculated using Adjusted EBIT and is based on current tax legislation 3 Adjusted Net Income Attributable to ...

Sales increased 3% to $11.0 billion, compared to a 2% rise in global light vehicle productionDiluted earnings per share and Adjusted diluted earnings per share were $0.03 and $1.08, respectivelyRecorded asset impairments and restructuring totaling $316 million related to FiskerPaid dividends of $134 millionMaintaining 2024 Adjusted EBIT Margin Outlook range of 5.4%-6.0% AURORA, Ontario, May 03, 2024 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX:MG, NYSE:MGA) today reported financial results for the firs ...