Nasdaq GlobeNewswire

Magna Announces Record First Quarter Results

Del
  • Record quarterly sales, up 21% year over year to $10.79 billion
  • Record quarterly diluted earnings per share of $1.83, increased 21%
  • Cash provided from operating activities of $577 million, up 26%, a first quarter record
  • Paid dividends of $118 million and returned $103 million to shareholders through share repurchases
  • Increased full year outlook for sales and net income attributable to Magna

AURORA, Ontario, May 10, 2018 (GLOBE NEWSWIRE) -- Magna International Inc. (TSX:MG) (NYSE:MGA) today reported financial results for the first quarter ended March 31, 2018.

Please click HERE for full first quarter Financial Statements and MD&A.

      THREE MONTHS ENDED
      March 31, 2018   March 31, 2017(2)
Reported          
 

Sales
    $   10,792   $   8,900
 

Income from operations before income taxes
    $   851   $   793
 

Net income attributable to Magna International Inc.
    $   660   $   577
 

Diluted earnings per share
    $   1.83   $   1.51


Non-GAAP Financial Measures (1)


Adjusted EBIT
    $   875   $   818
           
Adjusted diluted earnings per share     $   1.84   $   1.53
           
All results are reported in millions of U.S. dollars, except per share figures, which are in U.S. dollars
 
(1)Adjusted EBIT, Adjusted diluted earnings per share and Adjusted EBIT as a percentage of sales are Non-GAAP financial measures that have no standardized meaning under U.S. GAAP, and as a result may not be comparable to the calculation of similar measures by other companies. A reconciliation of these Non-GAAP financial measures is included in the back of this press release.


(2) 2017 amounts included in this Press Release have been adjusted for our adoption of the new revenue standard (Accounting Standard Codification 606) and recast for our new reportable segments.
 

THREE MONTHS ENDED MARCH 31, 2018

We posted sales of $10.79 billion for the first quarter of 2018, an increase of 21% over the first quarter of 2017. The strong growth was achieved despite light vehicle production that declined 2% in North America and was essentially unchanged in Europe, both compared to the first quarter of 2017. We delivered sales growth in each of our operating segments, most notably in our Complete Vehicles segment, which contributed approximately 60% of the increase in sales in the first quarter of 2018.  Excluding the impact of foreign currency translation and net divestitures, sales increased 14%.

Adjusted EBIT increased 7% to $875 million in the first quarter of 2018 resulting in an adjusted EBIT as a percentage of sales of 8.1% in the first quarter of 2018 compared to 9.2% in the first quarter of 2017.  This margin decline was largely driven by an increase in the proportion of sales generated in our Complete Vehicles segment, which have a significantly lower margin as a percentage of sales than our consolidated average, as well as higher launch costs.

Income from operations before income taxes and net income attributable to Magna International Inc. were $851 million and $660 million for the first quarter of 2018, increases of 7% and 14%, respectively, compared to the first quarter of 2017.

Diluted earnings per share increased 21% to $1.83 in the first quarter of 2018, reflecting higher income from operations before income taxes, a lower income tax rate primarily as a result of U.S. tax reform, and the favourable impact of a reduced share count.  Adjusted diluted earnings per share increased 20% to $1.84 compared to $1.53 for the first quarter of 2017.

In the first quarter of 2018, we generated cash from operations before changes in operating assets and liabilities of $1.03 billion, and invested $455 million in operating assets and liabilities. Investment activities for the first quarter of 2018 were $357 million, including $243 million in fixed asset additions and a $114 million increase in investments, other assets and intangible assets.

"We had a strong start to the year, reporting record first quarter results and increasing our outlook for sales and earnings. We continue to position Magna for the emerging mobility ecosystem as demonstrated by the recently announced partnership with Lyft." 
- Don Walker, Magna's Chief Executive Officer

A photo accompanying this announcement is available at http://resource.globenewswire.com/Resource/Download/9b2aa63a-cfe9-4e35-bfcc-6a0fefca3a3e

RETURN OF CAPITAL TO SHAREHOLDERS

During the three months ended March 31, 2018, we paid dividends of $118 million.  In addition, we repurchased 1.9 million shares for $103 million in the first quarter of 2018.

Yesterday, our Board of Directors declared a quarterly dividend of $0.33 with respect to our outstanding Common Shares for the quarter ended March 31, 2018. This dividend is payable on June 8, 2018 to shareholders of record on May 25, 2018.

SEGMENT SUMMARY(2)

($Millions unless otherwise noted) For the three months ended March 31,
Sales   Adjusted EBIT
      2018       2017       Change         2018     2017     Change  
Body Exteriors & Structures $   4,619   $   4,167   $   452     $   340 $   349 $   (9 )
Power & Vision     3,190       2,963       227         358     328     30  
Seating Systems     1,470       1,335       135         130     116     14  
Complete Vehicles     1,660       527       1,133         19     6     13  
Corporate and Other     (147 )     (92 )     (55 )       28     19     9  
Total Reportable Segments $   10,792   $   8,900   $   1,892     $   875 $   818 $   57  
 

 
  For the three months ended March 31,
    Adjusted EBIT as a
 percentage of sales
            2018     2017   Change  
Body Exteriors & Structures           7.4 %   8.4 %   (1.0 )%
Power & Vision           11.2 %   11.1 %   0.1 %
Seating Systems           8.8 %   8.7 %   0.1 %
Complete Vehicles           1.1 %   1.1 %   0.0 %
Consolidated Average           8.1 %   9.2 %   (1.1 )%
 

For further details on our segment results, please see our Management's Discussion and Analysis of Results of Operations and Financial Position and our Interim Financial Statements.

UPDATED 2018 OUTLOOK

      Current   Previous
Light Vehicle Production (Units)
  North America
  Europe
   

 
 

17.3 million
22.6 million
   

17.4 million
22.4 million
           
Segment Sales
  Body Exteriors & Structures
  Power & Vision
  Seating Systems
  Complete Vehicles
   

 
 

$17.3 - $18.1 billion
$12.3 - $12.9 billion
$5.5 - $5.9 billion
$6.4 - $6.8 billion
   

$16.6 - $17.4 billion
$11.8 - $12.4 billion
$5.3 - $5.7 billion
$6.0 - $6.4 billion
           
Total Sales     $40.9 - $43.1 billion   $39.3 - $41.5 billion
           
Adjusted EBIT Margin(3)     7.9% - 8.2%   7.9% - 8.2%
           
Equity Income (included in EBIT)     $335 - $375 million   $335 - $375 million
           
Interest Expense, net     Approximately $90 million   Approximately $90 million
           
Income Tax Rate(4)     22% - 23%   22% - 23%
           
Net Income attributable to Magna     $2.4 - $2.6 billion   $2.3 - $2.5 billion
           
Capital Spending     Approximately $1.8 billion   Approximately $1.8 billion
           
(3)  Adjusted EBIT Margin is the ratio of Adjusted EBIT to Total Sales.
(4)  The Income Tax Rate has been calculated using Adjusted EBIT and is based on current tax legislation. 
 
   

In this 2018 outlook, we have assumed:

  • 2018 light vehicle production volumes (as set out above);
  • no material unannounced acquisitions or divestitures; and
  • foreign exchange rates for the most common currencies in which we conduct business relative to our U.S. dollar reporting currency as follows:
    · 1 Canadian dollar equals U.S. dollars     0.780
    · 1 euro equals U.S. dollars                       1.225

NON-GAAP FINANCIAL MEASURES RECONCILIATION

Adjusted EBIT
 
The following table reconciles net income to Adjusted EBIT:
   
  For the three months ended March 31,
    2018       2017  
       
Net Income $   669     $   587  
Add:      
  Interest expense, net     21         19  
  Other expense     3         6  
  Income taxes     182         206  
Adjusted EBIT $   875     $   818  
       
       
Adjusted EBIT as a percentage of sales ("Adjusted EBIT margin")      
       
Adjusted EBIT as a percentage of sales is calculated in the table below:
   
  For the three months ended March 31,
    2018       2017  
       
Sales $   10,792     $   8,900  
Adjusted EBIT $   875     $   818  
Adjusted EBIT as a percentage of sales     8.1%         9.2%  
       
       
Adjusted diluted earnings per share      
       
The following table reconciles net income attributable to Magna International Inc. to Adjusted diluted earnings per share:
   
  For the three months ended March 31,
    2018       2017  
       
Net income attributable to Magna International Inc. $   660     $   577  
Add:      
  Other expense     3         6  
Adjusted net income attributable to Magna International Inc. $   663     $   583  
Diluted weighted average number of Common Shares outstanding during the year (millions):     359.9         383.4  
Adjusted diluted earnings per share $   1.84     $   1.53  
 

Certain of the forward-looking financial measures above are provided on a Non-GAAP basis. We do not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.  To do so would be potentially misleading and not practical given the difficulty of projecting items that are not reflective of on-going operations in any future period. The magnitude of these items, however, may be significant.

This press release together with our Management's Discussion and Analysis of Results of Operations and Financial Position and our Interim Financial Statements are available in the Investor Relations section of our website at www.magna.com/investors and filed electronically through the System for Electronic Document Analysis and Retrieval (SEDAR) which can be accessed at www.sedar.com as well as on the United States Securities and Exchange Commission's Electronic Data Gathering, Analysis and Retrieval System (EDGAR), which can be accessed at www.sec.gov.

We will hold a conference call for interested analysts and shareholders to discuss our first quarter ended March 31, 2018 results on Thursday, May 10, 2018 at 2:30 p.m. EST. The conference call will be chaired by Don Walker, Chief Executive Officer. The number to use for this call from North America is 1-888-224-3708. International callers should use 1-303-223-4397. Please call in at least 10 minutes prior to the call start time. We will also webcast the conference call at www.magna.com. The slide presentation accompanying the conference call will be available on our website Thursday prior to the call.

TAGS
Quarterly earnings, record quarter, financial results, sales growth

INVESTOR CONTACT
Louis Tonelli, Vice-President, Investor Relations 
louis.tonelli@magna.com  |  905.726.7035

MEDIA CONTACT 
Tracy Fuerst, Director of Corporate Communications & PR
tracy.fuerst@magna.com  |  248.631.5396

OUR BUSINESS (5)
We have more than 172,000 entrepreneurial-minded employees dedicated to delivering mobility solutions. We are a mobility technology company and one of the world's largest automotive suppliers with 340 manufacturing operations and 93 product development, engineering and sales centres in 28 countries. Our competitive capabilities include body exteriors and structures, power and vision technologies, seating systems and complete vehicle solutions. Our common shares trade on the Toronto Stock Exchange (MG) and the New York Stock Exchange (MGA). For further information about Magna, visit www.magna.com.

___________________________
(5) Manufacturing operations, product development, engineering and sales centres and employee figures include certain equity-accounted operations.

FORWARD-LOOKING STATEMENTS
We disclose "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") to provide information about management's current expectations and plans. Such forward-looking statements may not be appropriate for other purposes.

Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, objectives or economic performance, or the assumptions underlying any of the foregoing, and other statements that are not recitations of historical fact. We use words such as "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "aim", "forecast", "outlook", "project", "estimate", "target" and similar expressions suggesting future outcomes or events to identify 
forward-looking statements.

Forward-looking statements in this press release include, but are not limited to, statements related to:

  • The expected benefits of our partnership with Lyft;
  • Magna's forecasts of light vehicle production in North America and Europe;
  • Expected consolidated sales, based on such light vehicle production, including expected split by segment in our Body Exteriors & Structures; Power & Vision; Seating Systems; and Complete Vehicles segments;
  • Consolidated EBIT margin;
  • Consolidated equity income;
  • Net interest expense;
  • Effective income tax rate;
  • Net income;
  • Fixed asset expenditures; and
  • Future returns of capital to our shareholders, including through dividends or share repurchases.

Our forward-looking statements are based on information currently available to us, and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.

While we believe we have a reasonable basis for making such forward-looking statements, they are not a guarantee of future performance or outcomes. Whether actual results and developments conform to our expectations and predictions is subject to a number of risks, assumptions and uncertainties, many of which are beyond our control, and the effects of which can be difficult to predict, including, without limitation:

Risks Related to the Automotive Industry 

  • economic cyclicality;
  • intense competition;
  • potential restrictions on free trade;
Customer and Supplier Related Risks

  • concentration of sales with six customers;
  • shifts in market shares among vehicles or vehicle segments;
  • potential loss of a material purchase order;
Manufacturing / Operational Risks

  • product launch risks;
  • operational underperformance;
  • restructuring costs;
  • impairment charges;
  • labour disruptions;
  • supply disruptions;
IT Security Risk

  • IT/Security breach;
Pricing Risks
  • pricing risks between time of quote and start of production;
  • price concessions;
  • commodity costs;
  • declines in scrap steel prices;
Warranty / Recall Risks

  • costs to repair or replace defective products;
  • warranty costs that exceed our warranty provision;
  • costs related to a significant recall;
Acquisition Risks

  • an increase in our risk profile as a result of completed acquisitions;
  • acquisition integration risk;
Other Business Risks

  • risks related to conducting business through joint ventures;
  • our ability to consistently develop innovative products or processes;
  • changing risk profile;
  • risks of conducting business in foreign markets;
  • fluctuations in relative currency values;
  • tax reassessments and exposures related to changes in tax laws;
  • changes in credit ratings assigned to us;
  • the unpredictability of, and fluctuation in, the trading price of our Common Shares;
Legal, Regulatory and Other Risks
  • antitrust and compliance risk;
  • legal claims and/or regulatory actions against us; and
  • changes in laws.

In evaluating forward-looking statements or forward-looking information, we caution readers not to place undue reliance on any forward-looking statement, and readers should specifically consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements, including the risks, assumptions and uncertainties above which are discussed in greater detail in this document under the section titled "Industry Trends and Risks" and set out in our Annual Information Form filed with securities commissions in Canada and our annual report on Form 40-F filed with the United States Securities and Exchange Commission, and subsequent filings.




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Magna International Inc. via Globenewswire

Om Nasdaq GlobeNewswire

Nasdaq GlobeNewswire
Nasdaq GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

+1 212 401 8700http://www.nasdaqomx.com

NASDAQ (NASDAQ: NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents.

Følg saker fra Nasdaq GlobeNewswire

Registrer deg med din epostadresse under for å få de nyeste sakene fra Nasdaq GlobeNewswire på epost fortløpende. Du kan melde deg av når som helst.

Siste saker fra Nasdaq GlobeNewswire

Checkpoint Therapeutics Announces Presentation of Updated Data from Phase 1/2 Trial of EGFR Inhibitor CK-10125.9.2018 14:00Pressemelding

Data were featured in an oral presentation at the IASLC 19th World Conference on Lung Cancer Phase 3 trial in treatment-naïve EGFR mutation-positive NSCLC patients targeted to commence in 2019 NEW YORK, Sept. 25, 2018 (GLOBE NEWSWIRE) -- Checkpoint Therapeutics, Inc. (“Checkpoint”) (NASDAQ: CKPT), a clinical-stage immuno-oncology biopharmaceutical company focused on the acquisition, development and commercialization of novel treatments for patients with solid tumor cancers, today announced that positive preliminary safety and efficacy data from an ongoing Phase 1/2 clinical trial of CK-101 were presented yesterday in an oral presentation at the International Association for the Study of Lung Cancer (IASLC) 19th World Conference on Lung Cancer in Toronto. The oral presentation included further details on, and updates from, the dataset announced previously. CK-101 is a third-generation epidermal growth factor receptor (EGFR) tyrosine kinase inhibitor (TKI) being evaluated in advanced non

SpeeDx Begins Multisite U.S. Clinical Trials of ResistancePlus® MG Test25.9.2018 14:00Pressemelding

Test supports international guidelines for treating antibiotic resistant STI SYDNEY, Australia, Sept. 25, 2018 (GLOBE NEWSWIRE) -- SpeeDx Pty. Ltd. today announced the start of patient testing in their multisite U.S.-based clinical trials for ResistancePlus® MG (not available for sale in the U.S.). The molecular diagnostic test detects the sexually transmitted infection (STI) Mycoplasma genitalium, also known as Mgen or MG, along with genetic markers linked to antibiotic resistance. In recent years, Mgen prevalence has increased globally and developed high rates of resistance to the common antibiotic treatment, azithromycin. "This test is an exciting new development that will increase the precision of patient care for patients impacted by Mycoplasma genitalium - a common sexually transmitted infection with limited treatment options,” notes Dr Maria Trent, Professor of Pediatrics and Public Health at Johns Hopkins Medicine. The SpeeDx ResistancePlus MG test is in use in laboratories acr

Novavax Initiates Phase 2 Clinical Trial of NanoFlu™ in Older Adults25.9.2018 13:00Pressemelding

First participants enrolled in Phase 2 clinical trial of quadrivalent NanoFlu formulations Top-line immunogenicity and safety data expected in the first quarter of 2019 Phase 2 results will support meeting with the U.S. Food and Drug Administration (FDA) and Phase 3 clinical trial design GAITHERSBURG, Md., Sept. 25, 2018 (GLOBE NEWSWIRE) -- Novavax, Inc. (NASDAQ: NVAX) today announced the initiation of a Phase 2 dose and formulation confirmation clinical trial in older adults of NanoFlu, its nanoparticle seasonal influenza vaccine candidate. “Initiating this Phase 2 clinical trial of NanoFlu is an important milestone for Novavax,” said Stanley C. Erck, President and Chief Executive Officer of Novavax. “With top-line results expected in the first quarter of 2019, we plan to discuss these data with the FDA at an ‘End of Phase 2’ meeting and to agree on the appropriate Phase 3 clinical trial design to support licensure via accelerated approval. We continue to believe NanoFlu is a differen

CGAP Launches Photo and Video Contest Theme for 2018: Financial Inclusion in Africa25.9.2018 13:00Pressemelding

This year's CGAP contest is the first ever to accept short video entries WASHINGTON, Sept. 25, 2018 (GLOBE NEWSWIRE) -- The Consultative Group to Assist the Poor’s (CGAP) 13th annual photo contest, launched today, is seeking striking images on financial inclusion in Africa. For the first time, short video submissions on Africa also will be accepted. Entries may be submitted through December 14, 2018. Each contestant may submit up to 20 photos or videos to compete for the Grand Prize worth US$ 2,000. This year CGAP is looking for original and compelling photographs and short videos that tell the story of how financial services empower poor people and communities in Africa. The region is a center for financial innovation -- home to M-Pesa, the mobile money service launched a decade ago now replicated across markets worldwide; host to vibrant FinTech and e-commerce companies; and to a growing off-grid sector that leverages digital finance. Together these innovators contribute toward lifti

Kick-starting health in the workplace25.9.2018 10:00Pressemelding

Over 800 organizations step, bike, swim and yoga their way to better health and wellbeing as the May 2018 Virgin Pulse Global Challenge Concludes ZURICH, Switzerland, Sept. 25, 2018 (GLOBE NEWSWIRE) -- On August 30th more than 270,000 people, across 144 countries, completed Virgin Pulse’s 100-day Global Challenge, moving them towards a more active, healthy and productive lifestyle. With this achievement, Virgin Pulse, an international leader in employee health and wellbeing, once again proves it’s helping to improve employee lives for good. The company’s Global Challenge event encourages exercise, mindfulness and healthy habits at work, leading to a happier culture and reduced costs to the organization. “Through increased awareness, education and motivation, employees master long-term, sustainable habits allowing them to arrive at work feeling more engaged, productive and equipped for peak performance,” says David Osborne, Chief Executive Officer of Virgin Pulse. “The follow-on effects

GridGain Unveils Keynote Schedule for Fourth Annual In-Memory Computing Summit North America25.9.2018 09:00Pressemelding

Oracle Becomes Platinum Conference Sponsor FOSTER CITY, Calif., Sept. 25, 2018 (GLOBE NEWSWIRE) -- GridGain® Systems, provider of enterprise-grade in-memory computing solutions based on Apache® Ignite™, today announced the keynote speaker schedule for the fourth annual In-Memory Computing Summit® North America, taking place October 2-3, 2018 at the Hyatt Regency San Francisco Airport. Industry luminaries from ING Belgium, Wellington Management, Oracle, SNIA and GridGain Systems will discuss the evolution of in-memory computing technology and how organizations are leveraging in-memory computing to obtain the speed and scalability necessary for their digital transformation, omnichannel customer experience, Big Data and Fast Data initiatives. GridGain today also announced that Oracle has become a Platinum conference sponsor. The In-Memory Computing Summit North America 2018 is the only in-memory computing conference focusing on the full range of in-memory computing-related technologies an

I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.

Besøk vårt presserom