Magna International, the Canadian auto parts maker, announced its first quarter net profit increased by almost 7% thanks to rising demand from the North American and European regions.
As net income was boosted to $393 million, or $1.76 per share, for the first three months of the year, surging from $369 million, or $1.57 per share, in the same period of 2013, the company decided to upgrade its full year forecast for production sales in the two regions.
While total sales climbed by a 7% tally to $8.96 billion, the production sales went up by 9% to $4.41 billion for the North American region in the quarter, with Europe going up 8% to $2.63 billion.
The auto parts maker, with no less than 315 production facilities in 29 countries has been working hard to address the difficult economic situation in the European region, where it set up a plan to cut costs and improve production efficiency as the recovery is still very slow. According to the company, most of the work there is expected to complete by the year’s end, with small assets to be dealt with in 2015.
Besides the two powerful regions, Magna’s production sales also went up in the Asian region – targeting China, Japan, Korea, India and Thailand, with a 25% rise to $381 million.
On the other hand, its rest of the world operations – mainly including the South American region – registered a production sales slump of more than 25% to just 157 million, with the company struggling to counter the effects of heavy inflation in some of the region’s countries.
Via Automotive News Europe