Magna International Reports Mixed Q2 Earnings
Magna International Inc (NYSE: MGA) reported second-quarter FY22 sales growth of 4% year-on-year to $9.36 billion, beating the consensus of $9.31 billion.
Global light vehicle production increased 2%, including a 14% increase in North America and a 1% decrease in Europe.
Body Exteriors & Structures segment sales increased 8.2% Y/Y, Power & Vision grew 0.2%, Seating Systems gained 7.5%, and Complete Vehicles sales declined 5.8%.
Loss from operations before income taxes for the quarter was $(88) million versus an operating income of $540 million last year.
Adjusted EBIT was $358 million with an adjusted EBIT margin of 3.8%.
Adjusted EPS of $0.83 missed the analyst consensus of $1.59.
"While we anticipate ongoing industry disruption through at least the remainder of 2022, we expect light vehicle production and our earnings to increase in the second half of the year, compared to the first half," said CEO Swamy Kotagiri.
Outlook: Magna raised its FY22 sales outlook to $37.6 billion - $39.2 billion from the prior view of $37.3 billion - $38.9 billion, versus the estimate of $43.41 billion.
Price Action: MGA shares traded lower by 1.16% at $63.08 on the last check Friday.
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