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Benzinga
Benzinga
Business
Shivani Kumaresan

Magna Clocks 5% Sales Decline In Q1; Cuts FY22 Outlook

  • Magna International Inc (NYSE:MGA) (TSX:MG) reported a first-quarter FY22 sales decline of 5.3%, to $9.64 billion, beating the consensus of $9.31 billion.
  • Global light vehicle production growth was down 7%, primarily driven by a 16% decrease in Europe.
  • Body Exteriors & Structures segment sales grew 1.3% Y/Y, Power & Vision fell 3.5%, Seating Systems gained 5.6%, and Complete Vehicles sales decreased 31.1%.
  • The operating margin was 4.4%, and operating income before income taxes for the quarter was $420 million, a 47.8% decrease.
  • Adjusted EBIT was $507 million with an adjusted EBIT margin of 5.3%.
  • Adjusted EPS of $1.28 missed the analyst consensus of $1.59.
  • Outlook: Magna has cut FY21 sales guidance to $37.3 billion - $38.9 billion (prior $38.8 billion - $40.4 billion), versus the consensus of $43.41 billion.
  • Price Action: MGA shares closed higher by 2.36% at $62.45, and MG closed 2.20% higher at C$79.92 on TSX on Thursday.
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