Autoparts maker Magna International announces sales and spending projections
January 15, 2014 by The Canadian Press
Magna International Inc. is estimating between US$33.8 billion and US$35.5 billion of total sales this year, about the same as in 2013.
The company isn’t scheduled to release its full 2013 results until late February, but the sales projection issued Wednesday by Magna would be in line with company and analyst estimates for last year’s revenue.
Magna’s previous outlook, issued in November with its third-quarter results, estimated 2013 total revenue will be between US$33.9 billion and US$34.8 billion.
Analysts are looking for Magna to have about US$34.3 billion of revenue in 2013, according to estimates from Thomson Reuters.
Analysts have also projected 2014 revenue will rise to US$35.8 billion, which is above the guidance issued by Magna early Wednesday ahead of a presentation to an auto industry conference.
Magna said its estimates assume no major acquisitions or divestitures.
The company also says it expects production sales revenue in 2016 will be about US$3.6 billion higher than in 2014.
Magna’s 2014 production sales estimate, which excludes sales of assembled vehicles, is between US$28.6 billion and US$29.9 billion.
The Canadian auto parts giant, which operates 316 factories in countries around the world, is also predicting that it will spend about US$1.4 billion on capital projects this year — about the same as 2013.
“Our outlook indicates our continued progress in expanding our business in high growth regions, particularly in Asia,” Magna chief executive Don Walker said in a statement. “In addition, our outlook reflects our commitment to improving operating results in Europe, including through ongoing restructuring, implementing operational improvements and exercising discipline in quoting new business. This, together with ongoing strong performance in North America, is expected to result in continued improvement in our consolidated operating margin in the coming years.”