MAGNA INTERNATIONAL INC. Highlights:
* Sales of
* Diluted loss per share of
* Adjusted diluted earnings per share decreased 41%
* Increased sales outlook
* Click here for the PDF version of the release.
THREE MONTHS ENDEDJUNE 30 , SIX MONTHS ENDEDJUNE 30 ,
2022 2021 2022 2021
Reported
Sales$ 9,362 $ 9,034 $ 19,004 $19,213
(Loss) income from operations before income taxes$ (88 ) $540 $ 332 $ 1,345
Net (loss) income attributable to
Magna International Inc.$ (156) $ 424 $208 $1,039
Diluted (loss) earnings per share$ (0.54) $ 1.40 $ 0.70 $3.42
Non-GAAP Financial Measures(1)
Adjusted EBIT$ 358 $ 557 $865 $ 1,327
Adjusted diluted earnings per share$ 0.83 $1.40 $2.11 $ 3.27
All results are reported in millions of
(1) Adjusted EBIT and Adjusted diluted earnings per share are Non-GAAP financial measures that have no standardized meaning underU.S. GAAP, and as a result may not be comparable to the calculation of similar measures by other companies. A reconciliation of these Non-GAAP financial measures is included in the back of this press release.
'Our second quarter results were largely in line with our expectations, excluding the impairment of our investment in
THREE MONTHS ENDED
Sales were
Adjusted EBIT of
(Loss) income from operations before income taxes was
Net (loss) income attributable to
Diluted (loss) earnings per share decreased to
In the second quarter of 2022, we generated cash from operations before changes in operating assets and liabilities of
SIX MONTHS ENDED
We posted sales of
Adjusted EBIT decreased to
During the six months ended
During the first six months ended
For the six months ended
RETURN OF CAPITAL AND OTHER MATTERS
During the three months ended
Our Board of Directors declared a second quarter dividend of
The Board also announced the appointment of
SEGMENT SUMMARY: See full release at:
https://www.magna.com/company/newsroom/releases/release/2022/07/29/press-release---magna-announces-second-quarter-2022-results
Certain of the forward-looking financial measures above are provided on a Non-GAAP basis. We do not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with
This press release together with our Management's Discussion and Analysis of Results of Operations and Financial Position and our Interim Financial Statements are available in the Investor Relations section of our website at www.magna.com/company/investors and filed electronically through the System for Electronic Document Analysis and Retrieval (SEDAR) which can be accessed at www.sedar.com as well as on the
We will hold a conference call for interested analysts and shareholders to discuss our second quarter ended
TAGS
Quarterly earnings, financial results, vehicle production
INVESTOR CONTACT
louis.tonelli@magna.com 905.726.7035
MEDIA CONTACT
tracy.fuerst@magna.com 248.761.7004
TELECONFERENCE CONTACT
nancy.hansford@magna.com 905.726.7108
OUR BUSINESS (5)
Magna is more than one of the world's largest suppliers in the automotive space. We are a mobility technology company with a global, entrepreneurial-minded team of over 161,000(6) employees and an organizational structure designed to innovate like a startup. With 65+ years of expertise, and a systems approach to design, engineering and manufacturing that touches nearly every aspect of the vehicle, we are positioned to support advancing mobility in a transforming industry. Our global network includes 341 manufacturing operations and 89 product development, engineering and sales centres spanning 28 countries.
For further information about Magna (NYSE:MGA; TSX:MG), please visit www.magna.com or follow us on Twitter @MagnaInt.
(5) Manufacturing operations, product development, engineering and sales centres include certain operations accounted for under the equity method.
(6) Number of employees includes over 152,000 employees at our wholly owned or controlled entities and over 9,000 employees at certain operations accounted for under the equity method.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release constitute 'forward-looking information' or 'forward-looking statements' (collectively, 'forward-looking statements'). Any such forward-looking statements are intended to provide information about management's current expectations and plans and may not be appropriate for other purposes. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, strategic 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', 'aim', 'forecast', 'outlook', 'project', 'estimate', 'target' and similar expressions suggesting future outcomes or events to identify forward-looking statements. The following table identifies the material forward-looking statements contained in this document, together with the material potential risks that we currently believe could cause actual results to differ materially from such forward-looking statements. Readers should also consider all of the risk factors which follow below the table:
Material Forward-Looking Statement Material Potential Risks Related to Applicable Forward-Looking Statement
Total Sales
Segment Sales
Supply disruptions, including as a result of the semiconductor chip shortage currently being experienced in the industry; and
The impact of the Russian invasion of
The impact of rising interest rates and availability of credit on consumer confidence and, in turn, vehicle sales and production
Concentration of sales with six customers
Shifts in market shares among vehicles or vehicle segments
Shifts in consumer 'take rates' for products we sell
Adjusted EBIT Margin
Net Income Attributable to Magna
Same risks as for Total Sales and Segment Sales above
Operational underperformance
Higher costs incurred to mitigate the risk of supply disruptions, including: materials price increases; higher-priced substitute supplies; premium freight costs to expedite shipments; production inefficiencies due to production lines being stopped/restarted unexpectedly based on customers' production schedules; price increases from sub-suppliers that have been negatively impacted by production inefficiencies; and potential claims against us if customer production is disrupted
Inability to offset inflationary price increases
Price concessions
Commodity cost volatility
Higher labour costs
Tax risks
Equity Income
Same risks as Adjusted EBIT Margin and Net Income Attributable to Magna
Risks related to conducting business through joint ventures
Free Cash Flow
Same risks as for Total Sales/Segment Sales, and Adjusted EBIT Margin and Net Income Attributable to Magna above
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. While we believe we have a reasonable basis for making any such forward-looking statements, they are not a guarantee of future performance or outcomes. In addition to the factors in the table above, whether actual results and developments conform to 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:
Risks Related to the Automotive Industry
economic cyclicality;
regional production volume declines, including as a result of the COVID-19 pandemic;
intense competition;
potential restrictions on free trade;
trade disputes/tariffs;
Customer and Supplier Related Risks
concentration of sales with six customers; emergence of potentially disruptive Electric Vehicle OEMs;
OEM consolidation and cooperation;
shifts in market shares among vehicles or vehicle segments;
shifts in consumer 'take rates' for products we sell;
quarterly sales fluctuations;
potential loss of any material purchase orders;
a deterioration in the financial condition of our supply base, including as a result of the COVID-19 pandemic;
Manufacturing Operational Risks
product and new facility launch risks;
operational underperformance;
restructuring costs;
impairment charges;
labour disruptions;
COVID-19 shutdowns;
supply disruptions, including with respect to semiconductor chips;
higher costs to mitigate supply disruptions;
climate change risks;
attraction/retention of skilled labour and leadership succession;
IT Security/Cybersecurity Risk
IT/Cybersecurity breach;
Product Cybersecurity breach;
Pricing Risks
pricing risks between time of quote and start of production;
price concessions;
commodity cost volatility;
declines in scrap steel/aluminum prices;
Warranty / Recall Risks
costs related to repair or replacement of defective products, including due to a recall;
warranty or recall costs that exceed warranty provision or insurance coverage limits;
product liability claims;
Acquisition Risks
competition for strategic acquisition targets;
inherent merger and acquisition risks;
acquisition integration risk;
Other Business Risks
risks related to conducting business through joint ventures;
our ability to consistently develop and commercialize innovative products or processes;
our changing business risk profile as a result of increased investment in electrification and autonomous driving, including: higher R&D and engineering costs, and challenges in quoting for profitable returns on products for which we may not have significant quoting experience;
risks of conducting business in foreign markets;
fluctuations in relative currency values;
tax risks;
reduced financial flexibility as a result of an economic shock;
changes in credit ratings assigned to us;
Legal, Regulatory and Other Risks
antitrust risk;
legal claims and/or regulatory actions against us; and
changes in laws and regulations, including those related to vehicle emissions or made as a result of the COVID-19 pandemic.
In evaluating forward-looking statements or forward-looking information, we caution readers not to place undue reliance on any forward-looking statement. Additionally, 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, including the risks, assumptions and uncertainties above which are:
discussed under the 'Industry Trends and Risks' heading of our Management's Discussion and Analysis; and
set out in our Annual Information Form filed with securities commissions in
Readers should also consider discussion of our risk mitigation activities with respect to certain risk factors, which can be also found in our Annual Information Form.
(C) 2022 Electronic News Publishing, source
