Magna reported a better-than-expected 44 percent jump in Q1 profit
By Andrew, 04 May, 2011. 0 Comments
Magna Logo
Magna International Inc. posted a better-than-expected 44% increase in profit in the first quarter of 2011. The Canadian supplier, which is the No. 3 auto parts maker in the world, attributed the rise in profit to a large increase in vehicle production in North America and Europe. Magna stated that the interruptions to production related to the Japan disaster have “not been material” to its results. These are also not expected to have a significant impact in the future.
In the first quarter of 2011, Magna posted a net income of $322 million, or $1.30 a share. In comparison, Magna earned $224 million, or 99 cents a share, in the first quarter of 2010. Thomson Reuters I/B/E/S said that on average, analysts had expected Magna to report earnings of $1.13 a share on revenue of $6.6 billion.
Magna’s sales increased by 34% to $7.2 billion. Magna revealed that in the first quarter, vehicle production had climbed by 17% in North America and 10% in Western Europe. Complete vehicle assembly sales rose by 51% to $674 million, while complete vehicle assembly volumes went up by 85% to about 33,000 units. Magna manufactures parts for major auto companies but it also assembles complete vehicles in Europe.
Gallery: Magna Logo
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