Magna Posts 19% Profit Jump In Q1 On Higher Demand - Shares Jump 4.7%

BNN.ca

Canadian auto parts maker Magna International Inc. (MGA) on Thursday posted a bigger-than-expected profit for the first quarter, helped by higher demand, and the company also raised its full-year sales forecast.

Magna said that in Q1:

• total sales jumped to US$9.37 billion from US$8.90 billion...
  • sales in Asia rose 10% to US$557 million,
  • sales in Europe climbed 8% to US$2.46 billion,
  • sales in North America, which make up the bulk of Magna's total sales, increased 7% to US$5.09 billion.
• Net income...rose to US$586 million, or US$1.53 per share...from US$492 million, or US$1.22 per share, a year earlier.
• The company earned US$1.54 per share on an adjusted basis, topping analysts' average estimate of US$1.34, according to Thomson Reuters I/B/E/S.

[Looking forward,] Magna:

• raised its full-year 2017 sales forecast to US$36.6 billion to US$38.3 billion, from its prior forecast of US$36 billion to US$37.7 billion...[and]
• raised its total production sales forecast to US$30.8 billion to 32.1 billion, from US$30.4 billion to US$31.7 billion.

The company's U.S.-listed shares were up [4.7% in early morning] trading on Thursday.