Because of rising global auto production, Magna International was able to post a third-quarter profit on the strength of its sales. Its earnings totaled $241 million in the third quarter, a significant increase from $51 million a year ago.
Revenue rose by 27% to $5.9 billion while its per-share earnings were $2.06. Thomson Reuters I/B/E/S said that analysts had estimated that Magna will earn $1.52 a share on revenue of $5.4 billion.
In addition, Magna also revealed a two-for-one stock split of its outstanding common shares to be implemented through a stock dividend, which is payable on Nov. 24. If regulators approve it, shareholders will receive one additional common share of Magna for each common share held.
It’s likely that Magna’s common shares will start trading on Nov. 12 on a split basis on the Toronto market and on Nov. 26 on the New York Stock Exchange.
Magna released its results after the market closed. So far this year, its shares have gained about 85%. On Automotive News’ list of the biggest suppliers to North America, Magna is ranked No. 1, with $8.16 billion in sales of original equipment parts in the region last year. [via autonews - sub. required]