By Adriano Marchese


Shares in Magna International Inc. were lower Tuesday morning after the company said it expects to report lower margins than previously forecast for 2022 despite sales meeting targets.

At 9:34 a.m. ET, shares were trading 8.7% lower, at 79.81 Canadian dollars (US$59.70).

The Canadian auto-parts manufacturer set a new target of 4.3% for adjusted earnings before interest and taxes margin, below its target range of between 4.8% and 5%.

Meanwhile, the company expects to report sales of US$37.8 billion in the year, within its range of expectations of between US$37.4 billion and US$38.4 billion.

The company cites operational inefficiencies and higher labor costs for the lower targets, which are also expected to weigh on adjusted net income.


Write to Adriano Marchese at adriano.marchese@wsj.com


(END) Dow Jones Newswires

01-24-23 1004ET