Magna raises its forecast for 2013 N.A. production by 500,000 units
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DETROIT/TORONTO -- North America's largest auto supplier today bumped its 2013 forecast for auto production on the continent by 500,000 vehicles to 15.8 million units.
Canada's Magna International Inc. also upgraded its North American profit and revenue projections as auto sales continue to climb in the U.S. market. The supplier also reported a 12.5 percent rise in fourth-quarter profit thanks to strong sales in North America.
Fourth-quarter profit rose to $351 million, or $1.49 per share, from $312 million, or $1.32 per share, a year earlier.
Sales rose 11 percent to $8.03 billion at the company based near Toronto.
"We achieved this sales increase in a period when vehicle production increased 12 percent in North America," the company said in a statement.
For the year, Magna said it posted net income of $1.4 billion, up from profits of $1.0 billion in 2011. Total sales grew 7 percent to $30.8 billion.
Magna ranks No. 1 on the Automotive News list of the top 100 suppliers in North America with sales to automakers of $14.7 billion on the continent in 2011.
The company, which also owns the Austrian auto assembler Magna Steyr, lowered its 2013 forecast for European production to 11.9 million units, from 12.0 million.
Higher expectations
Magna said it now expects 2013 sales of $32 billion to $33.4 billion, up from its prior forecast of $31.3 billion to $32.7 billion.
Analysts on an average expect 2013 revenue of $32.2 billion, according to Thomson Reuters.
Magna said it expects total production sales of $27 billion to $28 billion, up from the $26.5 billion to $27.5 billion range it had forecast in January.
Production sales are Magna's core business of manufacturing vehicle parts and exclude its smaller vehicle assembly and tooling operations.
Magna has been pushing to turn around its inefficient and money-losing operations in Europe.
The company said it expects to take a restructuring-related charge of about $150 million this year.
Magna competes with Johnson Controls Inc. and TRW Automotive Holdings Corp., and has 313 manufacturing plants in 29 countries.
Philip Nussel and Reuters contributed to this report.
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