Magna International Inc. posted a 382-percent increase in net profit in the third quarter of 2012 after receiving gains related to its acquisition of a minority stake in its electric car business. According to Canadian auto components supplier, the net income attributable to the company soared to $390 million, or $1.66 per share, in the third quarter of 2012, from $102 million, or 42 cents per share, in the same period in 2011.
The company also posted 6.3-percent increase in sales in the quarter in review to $7.41 billion. On average, analysts had expected Magna to post a net profit of $1.02 a share and revenues of $7.0 billion, according to Thomson Reuters. Magna also updated its sales outlook for 2012 to reflect an overall figure of between $30.3 billion to $31.2 billion, slightly higher than its previous forecast of between $29 billion and $30.5 billion.
The company, however, maintained its 2012 operating margin forecast in the "low to mid 5 percent range." Magna's shares are up 32 percent for the year-to-date.
Magna currently ranks fourth on the Automotive News list of the top 100 global suppliers, posting $28.3 billion in worldwide sales to automakers in 2011. Coinciding with the release of its third quarter results, Magna announced that its founder Frank Stronach had stepped down from the board, effective immediately.
He departed from the board to concentrate on activities outside the automotive industry. Stronach has trimmed his control and involvement with Magna since after taking a $970 million buyout from the company in June 2010. In a statement, Stronach said that one of those activities involves politics in Austria, adding he does not want my political views to be confused with his role on Magna's board