Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Auto supplier Magna's sales beat as virus-hit vehicle production rebounds

share with twitter share with LinkedIn share with facebook
08/07/2020 | 04:29am EDT

Auto parts maker Magna International Inc on Friday reported better-than-expected quarterly revenue and forecast full-year sales above estimates, as vehicle production in North America showed signs of a recovery from the COVID-19 pandemic.

The company said it lost about $5.5 billion in sales during the second quarter, as its customers shut production amid government-enforced lockdowns. Light-vehicle production in North America, Magna's biggest market, tumbled 70% in the period.

But as economies reopen following easing of the lockdowns, North America auto sales have gradually recovered since hitting a bottom in April, resulting in major automakers scrambling to ramp up production and boost weak inventories at dealerships.

That has lifted sales at several auto suppliers including Canada's Magna, which makes parts such as body structures, chassis and powertrain for customers including Ford Motor and Volkswagen.

"While our second quarter results were impacted by a precipitous decline in global vehicle production ... I am pleased we have been able to successfully restart operations at our plants around the world," Chief Executive Officer Don Walker said in a statement.

Ontario-based Magna had pulled its full-year financial outlook in March, and now expects 2020 sales between $30 billion and $32 billion, above analysts' estimate of $30.2 billion, according to IBES data from Refinitiv.

However, the sales target is still down between 19% and 24% compared with a year earlier.

Earlier this week, U.S. auto parts makers BorgWarner Inc also reported a smaller-than-expected second-quarter loss and raised its full-year free cash flow outlook amid rebounding auto production.

On an adjusted basis, Magna lost $1.71 per share in the quarter ended June 30, bigger than estimates of a loss of $1.57 per share.

Total sales plunged about 58% to $4.29 billion, but topped estimates of $4.10 billion.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel)

Stocks mentioned in the article
ChangeLast1st jan.
BORGWARNER INC. -0.59% 36.81 Delayed Quote.-15.15%
FORD MOTOR COMPANY -2.25% 6.51 Delayed Quote.-30.00%
MAGNA INTERNATIONAL INC. 0.47% 59.6 Delayed Quote.-16.69%
VOLKSWAGEN AG -2.37% 133.3 Delayed Quote.-24.36%
share with twitter share with LinkedIn share with facebook
Latest news "Economy & Forex"
09:41aECB's Visco says euro's strength is a worry
09:35aCENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : China moves to aid rural tourism recovery
09:06aWALL STREET WEEK AHEAD : Trump-Biden debate could spark stock volatility
09:04aWALL STREET WEEKAHEAD : Trump-Biden debate could spark stock volatility
08:25aCENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : China's tourism industry recovers steadily amid epidemic control
07:45aGOVERNMENT OF REPUBLIC OF UZBEKISTAN : Deputy Prime Minister of the Republic of Uzbekistan, Chairman of the State Committee for tourism development Aziz Abdukhakimov congratulated representatives of the tourism industry on their professional holiday
07:43aParis fashion eco-system on edge as shows disappear
07:36aQatar Airways got $1.95 billion government lifeline after losses widened
07:30aG20 OF TWENTY FINANCE MINISTERS AND CENTRA : S20 Summit Focuses on Future Health, the Circular Economy, and Digital Development
07:15aEurope Invites a Trade Battle in its Fight Against Shipping Pollution
Latest news "Economy & Forex"