TORONTO -- Magna International reported a 20-percent jump in third-quarter profit on Tuesday as higher sales of its auto parts helped offset weaker conditions in the automotive industry.
The company, Canada's largest auto-parts maker, also said competitive automotive industry conditions could result in a number of plant closures and relocations, and that will hurt profitability in the short term.
Magna said its net income was $159 million, or $1.44 per share, for the quarter ended Sept. 30, up from $132 million, or $1.37 per share, in the year-earlier period.
"We expect our results will continue to be impacted by the negative conditions in the automotive industry, including weak automotive production, (original equipment manufacturers) price concessions, higher commodity costs and general economic uncertainty," the company said.
Analysts' average earnings forecast was $1.71 a share, according to Reuters Estimates.
Revenue rose 12 percent in the quarter to $5.38 billion from $4.78 billion as the company's North American and European average dollar content per vehicle increased.
Magna said its the average dollar amount of its products installed in North American vehicles jumped 24 percent, while European sales rose 14 percent.
The company said it expects consolidated sales for 2005 of $22.3 billion to $22.9 billion, up from $20.7 billion in 2004. Magna also said its diluted earnings per share, excluding items like will be lower than last year.
Magna International ranks No. 3 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $19.93 billion in 2004.