Magna beats Q1 profit expectations, raises guidance for the year

AURORA, Ont. — Magna International Inc. raised its guidance for the year as it reported a better-than-expected first-quarter profit and sales that grew 21% compared with a year ago.

The auto parts maker, which keeps its books in US dollars, says it earned $660 million or $1.83 per share for the quarter, up from $577 million, or $1.51 per share a year ago.

Revenue totalled $10.8 billion, up from $8.9 billion in the same quarter last year.

On an adjusted basis, the company says it earned $1.84 per share for the quarter, up from an adjusted profit of $1.53 per share a year ago. Analysts on average had expected a profit of $1.70 per share, according to Thomson Reuters Eikon.

In its outlook, Magna says it now expects sales this year to be in a range from $40.9 billion to $43.1 billion, up from its earlier guidance for a range from $39.3 billion to $41.5 billion.

Magna also says it now expects to earn between $2.4 billion and $2.6 billion for the year, up from its earlier forecast for a profit between $2.3 billion and $2.5 billion.