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Auto parts giants Magna, Linamar Q3 profits jump

Linamar says business wins position it for growth over next five years.


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Auto parts makers Magna International Inc. and Linamar Corp. both reported leaping profits in the third quarter.

Keywords: auto parts, automotive, manufacturing, industry, Linamar, Magna,

Auto parts giants Magna, Linamar Q3 profits jump

Linamar says business wins position it for growth over next five years.

AURORA, Ont. — Auto parts makers Magna International Inc. and Linamar Corp. both reported leaping profits in their third quarters.

Magna’s profit grew to US$470 million as the auto industry saw production grow in North America and Europe.

The Aurora, Ont.-based company said the profit amounted to $2.19 per diluted share in its quarter ended Sept. 30, up from $319 million or $1.39 per diluted share a year ago.

Magna, one of the world’s largest auto parts makers with more than 300 factories around the world, said sales increased to $8.82 billion, up from $8.34 billion in the same quarter last year as vehicle production increased 8% in North America and 4% in Europe, Magna said.

The overall increase in revenue came as North American and Asian production sales, complete vehicle assembly sales and tooling, engineering and other sales increased.

Meanwhile, its European and rest of world operations saw production sales fall compared with the same quarter last year.

In its outlook for 2014, the company narrowed its forecast for total sales to $35.8 billion to $37 billion compared with its second-quarter outlook for $35.6 billion to $37.3 billion.

Total production sales are now expected to be between $29.8 billion and $30.7 billion, while complete vehicle assembly sales are forecast between $3.1 billion and $3.3 billion. That compared with earlier expectations for $29.8 billion to $31.1 billion and $3.0 billion to $3.3 billion, respectively.

Linamar Corp., a Guelph, Ont.-based manufacturer of driveline components for passenger vehicles and on- and off-road industrial vehicles, has reported double-digit increases in sales and earnings in the third quarter and says new business wins position it well for growth over the next five years.

Net earnings in the three months ended Sept. 30 rose 52.7 per cent to $79.4 million or $1.23 per share from $52 million or 80 cents in the comparable year-earlier period.

Sales accelerated 14.3% to $1.02 billion from $891.3 million.

© 2014 The Canadian Press

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