The 4Q profit estimates laid front by Auto parts manufacturer, Magna International Inc. have yielded better-than-expected results – even though the results were crumpled by strengthening Dollar.
As per Magna’s claims, sales of its final Q of 2015 fell off with 3% to US$ 8.6 billion – probably due to currency exchange; Euro and Canadian Dollar back into strongest U.S Dollar.
The sales — without foreign currency translation — in that particular Q estimated to be bullish with an estimate of 6.0% – from a year earlier.
[Exclusive from Market Watch: Magna International Inc. raised its dividend with 14% and will now be paying off 25 cents/share on Q basis. On the other hand, the company guided for this year’s sales between US$ 34.6 billion and US$ 36.3 billion, BULLISH from last year’s sales of US$ 32.1 billion alongside a consensus of analyst forecast i.e.US$35.6 billion.]
As for profit, the auto part maker reported continuing operations of US$ 483 million, i.e. US$ 1.9/share – bearish – from US$ 516 million, i.e. US$ 1.23/share of a year ago. In accord with what Reuters had polled, the expectation was ahead of US$ 1.11/share.
Toronto based company currently functioning in 29 countries, stated North American light vehicle production to have had risen with 4% in the Q, while European light vehicle production hiked with 7%.
“Overall, we are satisfied with the progress we made during 2015. We took important steps to reposition our product portfolio for the future.” – Chief Executive, Don Walker
INSIGHT: At the start of year 2016, Magna had CLOSED nearly at US$ 2 billion purchase of German transmission maker Getrag Group of Cos. Last year, it sold its interiors operations to sharpen its focus on certain vehicle areas.
ABOUT THE COMPANY: Magna’s customers include General Motors Co Volkswagen AG, BMW and Ford Motor Co.
