Magna(US:MGA)2023-02-27 12:10Financial Performance - Magna International Inc. reported sales of $37,840 million for the year ended December 31, 2022, an increase of 4.4% from $36,242 million in 2021[23]. - Net income attributable to Magna International Inc. decreased to $592 million in 2022 from $1,514 million in 2021, representing a decline of 60.9%[23]. - Earnings per share (EPS) for 2022 were $2.04 (basic) and $2.03 (diluted), down from $5.04 and $5.00, respectively, in 2021[23]. - Comprehensive income for 2022 was $369 million, down from $1,344 million in 2021, reflecting a decline of 72.6%[24]. - Net income for 2022 was $641 million, a decrease of 58.8% from $1,553 million in 2021[26]. - Adjusted EBIT for 2022 was $1.662 billion, a decrease of 19.5% from $2.064 billion in 2021[166]. - In 2022, Magna International reported income before income taxes of $878 million, a decrease of 55% from $1,948 million in 2021[99]. Assets and Liabilities - Total assets as of December 31, 2022, were $27,789 million, a decrease from $29,086 million in 2021[25]. - Cash and cash equivalents decreased significantly to $1,234 million in 2022 from $2,948 million in 2021[25]. - The company's fixed assets, net totaled $8.17 billion in 2022, slightly down from $8.29 billion in 2021[167]. - Magna's total debt, net of unamortized issuance costs, was $2,847 million as of December 31, 2022, down from $3,538 million in 2021[112]. - The company recorded interest expense of $126 million in 2022, slightly up from $122 million in 2021[114]. - Total lease liabilities decreased to $1.564 billion in 2022 from $1.680 billion in 2021, a reduction of approximately 6.9%[118]. Cash Flow - Cash provided from operating activities decreased to $2,095 million in 2022 from $2,940 million in 2021, reflecting a decline of 28.8%[26]. - Cash used for investing activities was $2,038 million in 2022, down from $2,283 million in 2021, indicating a reduction of 10.7%[26]. - Cash used for financing activities increased to $1,733 million in 2022 from $1,106 million in 2021, representing a rise of 56.5%[26]. - Total cash and cash equivalents at the end of 2022 were $1,234 million, down from $2,948 million at the end of 2021, a decrease of 58.2%[26]. Inventory and Expenses - The cost of goods sold for 2022 was $33,188 million, up from $31,097 million in 2021, reflecting a 6.7% increase[23]. - Inventories increased to $4,180 million in 2022, compared to $3,969 million in 2021, indicating a rise of 5.3%[25]. - The company recorded a total of $703 million in other expenses for 2022, significantly up from $38 million in 2021, primarily due to impairment charges related to operations in Russia, net losses on investments, and restructuring costs[74]. - The company incurred restructuring and impairment charges totaling $48 million in 2022, compared to $101 million in 2021[79][80]. Investments and Acquisitions - The company invested $25 million in Yulu Mobility and contributed $52 million for a 51% controlling interest in the new battery swapping entity, Magna Yuma[158]. - The acquisition of Veoneer's Active Safety business was agreed upon for a purchase price of $1.525 billion, expected to close near mid-year 2023[160]. Customer and Sales Information - Sales to the Company's six largest customers accounted for 79% of total sales in 2022, up from 78% in 2021[152]. - The Company’s external sales to General Motors were $5.903 billion in 2022, an increase from $4.884 billion in 2021[166]. - North America accounted for $18.91 billion in external sales in 2022, up from $16.70 billion in 2021, reflecting a growth of about 7.2%[167]. - In Europe, external sales decreased to $14.30 billion in 2022 from $15.43 billion in 2021, a decline of approximately 7.3%[167]. - Asia Pacific external sales increased to $4.17 billion in 2022, compared to $3.70 billion in 2021, marking a growth of around 12.7%[167]. Research and Development - Research and development costs for 2022 were $649 million, slightly increased from $634 million in 2021, indicating ongoing investment in innovation[70]. Tax and Deferred Tax - The effective income tax rate for 2022 was 27.0%, compared to 20.3% in 2021[96]. - As of December 31, 2022, Magna had domestic and foreign operating loss carryforwards totaling $2.9 billion, with approximately $1.9 billion eligible for indefinite carryforward[102]. - The company's net deferred tax assets amounted to $179 million in 2022, compared to net liabilities of $19 million in 2021[100]. Shareholder Returns - The company paid dividends of $514 million in both 2021 and 2022, maintaining a consistent payout[27]. - The company repurchased $780 million of common shares in 2022, compared to $517 million in 2021, marking an increase of 50.9%[27].