Magna Q3 profit jumps; founder Stronach quits board
Frank Stronach: "I do not want my political views to be confused with my role on Magna's board."
TORONTO (Reuters) -- Diversified Canadian auto supplier Magna International Inc. said third-quarter profit nearly quadrupled on gains related to its purchase of the minority stake in its electric car business.
The company also said its founder Frank Stronach had stepped down from the board, effective immediately, to focus on activities outside the automotive industry. Stronach has reduced his control and involvement with the company since he took a $970 million buyout from the company in June 2010.
"One of these activities involves politics in Austria and I do not want my political views to be confused with my role on Magna's board," Stronach said in a statement.
Net income attributable to Magna rose to $390 million, or $1.66 per share, from $102 million, or 42 cents per share, a year earlier, the company said.
The company, which also assembles complete vehicles, said sales rose 6.3 percent to $7.41 billion.
Analysts, on average, had expected earnings of $1.02 a share and revenue of $7.0 billion, according to Thomson Reuters.
Magna slightly raised its 2012 sales outlook to between $30.3 billion to $31.2 billion from a forecast made last quarter of between $29 billion and $30.5 billion. It kept its 2012 operating margin forecast in the "low to mid 5 percent range."
Magna's stock is up 32 percent year-to-date.
Magna ranks No. 4 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $28.3 billion in 2011.Contact Automotive News