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Magna Announces Second Quarter Results

AURORA, ON, Aug. 11, 2017 /PRNewswire/ - Magna International Inc. (TSX: MG; NYSE: MGA) today reported financial results for the second quarter ended June 30, 2017.

Please click HERE for full second quarter Financial Statements and MD&A.



THREE MONTHS ENDED
JUNE 30,


SIX MONTHS ENDED
JUNE 30,



2017


2016


2017


2016










Sales


$

9,684


$

9,443


$

19,056


$

18,343










Income from operations before














income taxes


$

762


$

767


$

1,568


$

1,442










Net income attributable to














Magna International Inc.


$

561


$

558


$

1,147


$

1,050














Adjusted EBIT(1)


$

776


$

789


$

1,607


$

1,487










Diluted earnings per share


$

1.48


$

1.41


$

3.01


$

2.63










All results are reported in millions of U.S. dollars, except per share figures, which are in U.S. dollars.

(1) Adjusted EBIT is a Non-GAAP financial measure that has no standardized meaning under U.S. GAAP and as a result may not be comparable to the calculation of similar measures by other companies. Adjusted EBIT represents net income before income taxes; interest expense, net; and other expense, net. For a reconciliation of this Non-GAAP financial measure, see our Management's Discussion and Analysis of Results of Operations and Financial Position for the three and six months ended June 30, 2017 available in the Investor Relations section of our website at www.magna.com/investors.

THREE MONTHS ENDED JUNE 30, 2017

We posted all-time quarter record sales of $9.68 billion for the second quarter ended June 30, 2017, an increase of 3% over the second quarter of 2016. The year over year growth was achieved despite North American and European light vehicle production declining by 3% and 1%, respectively, both compared to the second quarter of 2016. Our complete vehicle assembly sales increased 14% in the second quarter of 2017 largely reflecting the start of production of the BMW 5-Series at our assembly facility in Graz, Austria, partially offset by the end of production of the MINI Countryman and Paceman in 2016.

During the second quarter of 2017, income from operations before income taxes was $762 million, a decrease of 1% compared to the second quarter of 2016. Net income attributable to Magna International Inc. was a second quarter record $561 million, an increase of 1% compared to the second quarter of 2016. Diluted earnings per share increased $0.07 in the second quarter of 2017, which includes the favourable impact of a reduced share count and the higher net income attributable to Magna International Inc.

During the second quarter of 2017, Adjusted EBIT decreased 2% to $776 million, compared to $789 million for the second quarter of 2016. Our Asia and Rest of World segments posted higher Adjusted EBIT and Adjusted EBIT percentage of sales, compared to the second quarter of 2016.

During the second quarter ended June 30, 2017, we generated cash from operations of $948 million before changes in operating assets and liabilities, and invested $391 million in operating assets and liabilities. Total investment activities for the second quarter of 2017 were $563 million, including $420 million in fixed asset additions and $143 million in investments, other assets and intangible assets.

We posted sales of $19.06 billion for the six months ended June 30, 2017, an increase of 4% from the six months ended June 30, 2016. North American light vehicle production decreased 1% and European light vehicle production increased 1%, in the first six months of 2017 compared to the first six months of 2016.

During the six months ended June 30, 2017, income from operations before income taxes was $1.57 billion, net income attributable to Magna International Inc. was $1.15 billion and diluted earnings per share was $3.01, increases of $126 million, $97 million and $0.38, respectively, each compared to the first six months of 2016.

During the six months ended June 30, 2017, Adjusted EBIT increased 8% to $1.61 billion, compared to $1.49 billion for the six months ended June 30, 2016. Our North America, Asia and Rest of World segments each posted higher Adjusted EBIT and Adjusted EBIT percentage of Sales, compared to the first six months of 2016.

During the six months ended June 30, 2017, we generated cash from operations before changes in operating assets and liabilities of $1.82 billion, and invested $818 million in operating assets and liabilities. Total investment activities for the first six months of 2017 were $955 million, including $729 million in fixed asset additions and $226 million in investments, other assets and intangible assets.

RETURN OF CAPITAL TO SHAREHOLDERS

During the three months ended June 30, 2017, Magna repurchased 8.5 million shares for $383 million. In addition, we paid dividends of $101 million in the second quarter of 2017.

Our Board of Directors declared a quarterly...


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