BUSINESS

Magna revenue up 13 per cent to US$8.3 billion, North America leads growth

11/06/2013 09:04 EST | Updated 01/23/2014 10:53 EST
AURORA, Ont. - Magna International (TSX:MG) turned in stronger third-quarter results than analysts were expecting, amid strong growth in North American vehicle production and a modest improvement in Europe.

The Canadian auto parts maker's revenue for the three-month period was up 13 per cent from last year, rising to US$8.3 billion from $7.4 billion and about $100 million above analyst estimates.

Its revenue was helped by a four per cent rise in North American vehicle production and a one per cent increase in European production compared with a year earlier, Magna said Wednesday.

As expected, Magna's net income was from last year, dropping to US$319 million or $1.39 per diluted share, but was 14 cents better than analyst estimates compiled by Thomson Reuters.

The third quarter included $33 million of restructuring charges that Magna said cut 14 cents per share from net income. Adding that back in, Magna would have earned 53 cents per share — 20 cents per share above the estimate for adjusted earnings.

As expected, Magna's net earnings were down from last year's third quarter when the company had an usual gain that pushed net income to US$390 million or $1.66 per share.

Magna has 312 manufacturing operations and 87 product development, engineering and sales centres in 29 countries.