Magna announces outlook
13 January 2010 - 9:00PM
PR Newswire (US)
AURORA, ON, Jan. 13 /PRNewswire-FirstCall/ -- Magna International
Inc. (TSX: MG.A; NYSE: MGA) announced today its financial outlook
for 2010. All amounts are in U.S. dollars. For the full year 2010,
we expect consolidated sales to be between $19.5 billion and $20.5
billion, based on full year 2010 light vehicle production volumes
of approximately 10.3 million units in North America and
approximately 11.4 million units in Europe. Full year 2010 average
dollar content per vehicle is expected to be between $895 and $925
in North America and between $545 and $570 in Europe. We expect
full year 2010 complete vehicle assembly sales to be between $1.6
billion and $1.9 billion. In addition, we expect that our full year
2010 spending for fixed assets will be in the range of $750 million
to $800 million. This amount reflects continuing investment to
support new and replacement business in our traditional markets as
well as investment to expand into high-growth emerging markets. In
this 2010 outlook, in addition to 2010 light vehicle production
volumes, we have assumed no significant acquisitions or
divestitures. In addition, we have assumed that foreign exchange
rates for the most common currencies in which we conduct business
relative to our U.S. dollar reporting currency will approximate
year end 2009 rates. We are the most diversified global automotive
supplier. We design, develop and manufacture technologically
advanced systems, assemblies, modules and components, and engineer
and assemble complete vehicles, primarily for sale to original
equipment manufacturers ("OEMs") of cars and light trucks. Our
capabilities include the design, engineering, testing and
manufacture of automotive interior systems; seating systems;
closure systems; body and chassis systems; vision systems;
electronic systems; exterior systems; powertrain systems; roof
systems; hybrid and electric vehicles/systems as well as complete
vehicle engineering and assembly. We have approximately 72,000
employees in 240 manufacturing operations and 85 product
development, engineering and sales centres in 25 countries.
FORWARD-LOOKING STATEMENTS Certain statements in this press release
constitute "forward-looking statements" within the meaning of
applicable securities legislation, including, but not limited to,
statements relating to Magna's expected consolidated sales, North
American and European average dollar content per vehicle, complete
vehicle assembly sales and fixed asset expenditures. The
forward-looking information in this press release is presented for
the purpose of providing information about management's current
expectations and plans and such information may not be appropriate
for other purposes. Forward-looking statements may include
financial and other projections, as well as statements regarding
our future plans, objectives or economic performance, or the
assumptions underlying any of the foregoing, and other statements
that are not recitations of historical fact. We use words such as
"may", "would", "could", "should", "will", "likely", "expect",
"anticipate", "believe", "intend", "plan", "forecast", "outlook",
"project", "estimate" and similar expressions suggesting future
outcomes or events to identify forward-looking statements. Any such
forward-looking statements are based on information currently
available to us, and are based on assumptions and analyses made by
us in light of our experience and our perception of historical
trends, current conditions and expected future developments, as
well as other factors we believe are appropriate in the
circumstances. However, whether actual results and developments
will conform with our expectations and predictions is subject to a
number of risks, assumptions and uncertainties, many of which are
beyond our control, and the effects of which can be difficult to
predict, including, without limitation: the potential for an
extended global recession, including its impact on our liquidity;
the persistence of low production volumes and sales levels;
restructuring of the global automotive industry and the impact on
the financial condition and credit worthiness of some of our OEM
customers, including the potential that such customers may not
make, or may seek to delay or reduce, payments owed to us; the
financial distress of some of our suppliers and the risk of their
insolvency, bankruptcy or financial restructuring; restructuring
and/or downsizing costs related to the rationalization of some of
our operations; impairment charges; shifts in technology; our
ability to successfully grow our sales to non-traditional
customers; a reduction in the production volumes of certain
vehicles, such as certain light trucks; our dependence on
outsourcing by our customers; risks of conducting business in
foreign countries, including Russia, India and China; our ability
to quickly shift our manufacturing footprint to take advantage of
lower cost manufacturing opportunities; the termination or non
renewal by our customers of any material contracts; fluctuations in
relative currency values; our ability to successfully identify,
complete and integrate acquisitions; the continued exertion of
pricing pressures by our customers and our ability to offset price
concessions demanded by our customers; the continuation, and
impact, of government financial intervention in the automotive
industry; disruptions in the capital and credit markets; warranty
and recall costs; product liability claims in excess of our
insurance coverage; changes in our mix of earnings between
jurisdictions with lower tax rates and those with higher tax rates,
as well as our ability to fully benefit tax losses; other potential
tax exposures; legal claims against us; work stoppages and labour
relations disputes; changes in laws and governmental regulations;
costs associated with compliance with environmental laws and
regulations; potential conflicts of interest involving our indirect
controlling shareholder, the Stronach Trust; and other factors set
out in our Annual Information Form filed with securities
commissions in Canada and our annual report on Form 40-F filed with
the United States Securities and Exchange Commission, and
subsequent filings. In evaluating forward-looking statements, we
caution readers not to place undue reliance on any forward-looking
statements and readers should specifically consider the various
factors which could cause actual events or results to differ
materially from those indicated by such forward-looking statements.
Unless otherwise required by applicable securities laws, we do not
intend, nor do we undertake any obligation, to update or revise any
forward-looking statements to reflect subsequent information,
events, results or circumstances or otherwise. DATASOURCE: Magna
International Inc. CONTACT: Vince Galifi at (905) 726-7100
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