Magna Expects Flat 2012 Sales - Analyst Blog
19 January 2012 - 5:06AM
Zacks
Magna International Inc. (MGA) revealed that it
expects consolidated sales between $27.8 billion and $29.3 billion
for full year 2012 based on its growth opportunities outside
traditional markets, strong position in North America and improving
results in Europe. It is flat compared with the sales guidance of
$28.1 billion and $28.9 billion for full year 2011.
The company expects consolidated production sales between $23.6
billion and $24.7 billion assuming light vehicle production volumes
of 13.6 million units in North America and 13.0 million units in
Western Europe for the full year. It also expects complete vehicle
assembly sales between $2.3 billion and $2.6 billion for the
year.
Considering the geographic regions, Magna anticipates production
sales between $13.2 billion and $13.7 billion in North America,
$8.4 billion and $8.7 billion in Europe and $2.0 billion and $2.3
billion in Rest of World for the year.
Meanwhile, the company stated that operating margins for the
full year is expected to be 5% and the effective income tax rate to
be 26%, all excluding unusual items. In addition, the company
anticipates capital expenditures to be $1.3 billion–$1.5 billion
for the year in order to support the expansion in high-growth
markets as well as new and replacement business in its traditional
markets.
Aside from full-year
2012, Magna also released its sales outlook for 2012-2014. The
company expects a net increase in total production sales of $3.2
billion over the two-year period, based on light vehicle production
volumes of 15.4 million units in North America and 14.2 million
units in Western Europe during 2014.
Considering the geographic regions, the company expects the net
increase in total production sales of 50% in North America, 15% in
Europe and 35% in Rest of World as a percentage of overall net
increase.
Magna, a Zacks #3 Rank (Hold) stock, is a leading manufacturer
and supplier of automotive components based in Aurora, Canada. The
company designs, develops and manufactures automotive systems,
assemblies, modules and components, besides engineering and
assembling complete vehicles, primarily for sale to OEMs of cars
and light trucks. It has yet
to release its fourth quarter sales and earnings results for
2011.
The company’s major customers include BMW, Chrysler/Fiat,
Daimler (DDAIF), Ford Motor (F),
General Motors (GM) and
Volkswagen (VLKAY). They constitute more than 80%
of its total revenues.
The company earned $226 million or 94 cents per share in the
third quarter of 2011 compared with $256 million or $1.10 per share
in the same quarter a year ago. Revenues increased 21% to $6.97
billion driven by higher sales across all its operations. Gross
profit improved 2% to $769 million, despite a 24% rise in cost of
goods sold to $6.20 billion.
DAIMLER AG (DDAIF): Free Stock Analysis Report
FORD MOTOR CO (F): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
MAGNA INTL CL A (MGA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Mercedes Benz (PK) (USOTC:DDAIF)
Historical Stock Chart
From Jul 2024 to Aug 2024
Mercedes Benz (PK) (USOTC:DDAIF)
Historical Stock Chart
From Aug 2023 to Aug 2024