Magna’s Q2 profit falls 28% as sales revenue and volumes decline
By CP STAFFGeneral Manufacturing automotive Magna manufacturing revenue sales
Auto parts maker cites lower operating margins and higher expense items.
AURORA, Ont. — Magna International Inc.’s second-quarter profit fell 28% to US$452 million as the auto parts maker experienced lower operating margins and higher expense items compared with last year.
Net income, reported in US currency, amounted to $1.42 per share while revenue was US$10.13 billion.
That was down from $626 million or $1.77 per share with $10.28 billion of revenue in last year’s second quarter.
Adjusted net income fell to $509 million or $1.59 per share, from $590 million or $1.67 per share.
Magna says its overall results were better than internal estimates, although its seating segment was below expectations due to launch costs and inefficiencies at a new facility.
Analysts had estimated $9.88 billion of revenue and $488.8 million or $1.53 per share of adjusted net income, according to financial markets data firm Refinitiv.