Auto parts maker Magna sees higher income, record sales

AURORA— Magna International Inc. is on track to grow its sales in 2018 but more slowly than last year, when it had record high annual and fourthquarter sales, the Canadian auto parts maker said Thursday.

Aurora, Ont.-based Magna, which reports in U.S. currency, said its annual sales increased 7 per cent last year to $38.9 billion.

Magna’s fourth-quarter sales rose 12.3 per cent to $10.4 billion, as light vehicle production rose 7 per cent in Europe and 5 per cent in North America during the last quarter of 2017. Net income attributable to Magna for the quarter grew 16.3 per cent to $556 million, amounting to $1.53 per share.

Adjusted diluted earnings equalled $1.57 per share, two cents above a consensus estimate from Thomson Reuters.

In addition to its quarterly and annual results, Magna reiterated 2018 sales and profit estimates announced last month.

It expects 2018 sales to be from $39.3 billion to $41.8 billion — up 4.2 per cent at the midpoint from $38.9 billion last year.

Net income attributable to Magna is estimated at between $2.3 billion and $2.5 billion — up 9.9 per cent at the midpoint from $2.2 billion last year. The company also announced its quarterly dividend will rise by 20 per cent to 33 cents a share, with the next payment on March 23.