Magna Reports Higher-Than-Expected Profit for the First Quarter image

Today, April 10th, auto parts maker Magna International reported an increase for the first quarter higher than analysts’ estimates, thanks to strong sales in North America.

Magna’s revenues increased 9%, and net income rose to $369 million ($1.57 per share) during the first quarter, compared with $343 million ($1.46 per share) in 2012. Sales increased 9% to $8.36 billion, compared with analysts’ estimates of $8.09 billion. The auto parts maker said that it expects sales this year to be somewhere between $32.6 billion and $34 billion, up from its previous forecast of $32 billion to $33.4 billion.

At the beginning of this month Magna said it planned to cut jobs in Europe and the United States as demand of car parts is slowing down on the Old Continent more than expected. Aurora, Ontario, Canada based Magna is one of the largest auto parts manufacturers in the world with approximately 119,000 employees, 313 manufacturing operations and 88 product development, engineering, and sales centers in 29 countries.

“We certainly need to make adjustments. We are working our best to establish a global presence and reduce costs. In Europe, we had to remove a number of places, as the economic situation has worsened, and we will make further restructuring in the region,“ said CEO Donald Walker.

Source: Reuters