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Magna International swings to profit in Q3, but sales pressured by COVID-19

AURORA, Ont. – Magna International says fewer vehicles are rolling off the assembly line during the COVID-19 pandemic, dragging sales down two per cent in the three months that Sept. 30.

But the Aurora, Ont.-based auto parts manufacturer says it earned $405 million profit on sales of $9.13 billion in the third quarter, returning to profitability after losing money last summer.

The results worked out to earnings of $1.35 per diluted share, or $1.95 per share, adjusted – above the forecasted earnings of $1.33 per share on sales of $9.07 billion expected by analysts polled by Refinitiv.

During the same period in 2019 there was a labour strike at General Motors in the U.S., and the automaker lost $233 million, or 75 cents per diluted share, on sales of $9.32 billion.

Magna says it now it expects slightly better results for the full year, raising its 2020 sales expectations to $31.5 billion to $32.5 billion.

The company’s board announced a dividend of 40 cents per share for the third quarter.

News from © The Canadian Press Enterprises 2020