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Magna Announces First Quarter Results

AURORA, ON, May 5, 2016 /PRNewswire/ - Magna International Inc. (MG) MGA, +0.22% today reported financial results for the first quarter ended March 31, 2016.






THREE MONTHS ENDED



March 31, 2016


March 31, 2015






Sales


$

8,900


$

7,772






Adjusted EBIT(1)


$

698


$

631






Income from continuing operations before






income taxes


$

675


$

621






Net income from continuing operations






attributable to Magna International Inc.


$

492


$

455






Diluted earnings per share






from continuing operations


$

1.22


$

1.10






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

(1) Adjusted EBIT is the measure of segment profit or loss as reported in the Company's attached unaudited interim consolidated financial statements.

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Adjusted EBIT represents income from operations before income taxes; interest expense, net; and other (income) expense, net.

Commenting on the completion of the Getrag acquisition early in 2016, Don Walker, Magna's Chief Executive Officer stated: "We welcome all Getrag employees to the Magna family of companies. The combined capabilities of Magna Powertrain and Getrag better position us to capitalize on powertrain opportunities and future changes in the global automotive industry."

THREE MONTHS ENDED MARCH 31, 2016

We posted sales of $8.90 billion for the first quarter ended March 31, 2016, an increase of $1.13 billion or 15% from the first quarter of 2015. Excluding the impact of foreign currency translation, our sales increased 19% in the first quarter of 2016, compared to the first quarter of 2015. North American and European light vehicle production increased 10% and 7%, respectively, in the first quarter of 2016 compared to the first quarter of 2015.

Our complete vehicle assembly sales decreased 1% in the first quarter of 2016, compared to the first quarter of 2015, while our complete vehicle assembly volumes decreased 15% from the comparable quarter to approximately 23,000 units.

During the first quarter of 2016, income from continuing operations before income taxes was $675 million and net income from continuing operations attributable to Magna International Inc. was $492 million, increases of 9% and 8% respectively, both compared to the first quarter of 2015. Diluted earnings per share from continuing operations increased 11% in the first quarter of 2016, which includes the favourable impact of a reduced share count.

During the first quarter ended March 31, 2016, we generated cash from operations of $767 million before changes in operating assets and liabilities, and invested $469 million in operating assets and liabilities. Total investment activities for the first quarter of 2016 were $2.18 billion, including $1.78 billion in business combinations, $346 million in fixed asset additions and $54 million in investments and other assets.

A more detailed discussion of our consolidated financial results for the first quarter ended March 31, 2016 is contained in the Management's Discussion and Analysis of Results of Operations and Financial Position and the unaudited interim consolidated financial statements and notes thereto, which are attached to this Press Release.

RETURN OF CAPITAL TO SHAREHOLDERS

During the first quarter of 2016, Magna repurchased 7.3 million shares for $300 million pursuant to our Normal Course Issuer Bid ("NCIB") which expires in November 2016. We have 30.1 million shares remaining and available for purchase under the NCIB.

Yesterday, our Board of Directors declared a quarterly dividend of $0.25 with respect to our outstanding Common Shares for the quarter ended March 31, 2016. This dividend is payable on June 10, 2016 to shareholders of record on May 27, 2016.

OTHER MATTERS

On May 2, 2016, Magna increased its revolving credit facility by $500 million to $2.75 billion and extended the final maturity date from June 22, 2020 to June 22, 2021.

Vince Galifi, Magna's Chief Financial Officer commented: "As a result of our continued growth, we believe it is prudent to both increase the amount and extend the term on our credit facility. This provides flexibility to allow us to capitalize on future opportunities."

UPDATED 2016 OUTLOOK







Light Vehicle Production (Units)




North America


18.0 million


Europe


21.3 million




Production Sales




North America


$19.5 billion - $20.1 billion


Europe


$8.8 billion - $9.2 billion


Asia


$2.1 billion - $2.3 billion


Rest of World


$0.3 billion - $0.4 billion


Total Production Sales


$30.7 billion - $32.0 billion




Complete Vehicle Assembly Sales


$1.9 billion - $2.2 billion




Total Sales


$35.5 billion - $37.2 billion




EBIT Margin(1)


High 7% range




Interest Expense, net


Approximately $90 million




Tax Rate(1)


25% - 26%




Capital Spending


$1.8 billion - $2.0 billion




(1) Excluding other expense, net

In this 2016 outlook, in addition to 2016 light vehicle production, we have assumed no material acquisitions or divestitures. In addition, we have assumed that foreign exchange rates for the most common currencies in which we conduct business relative to our U.S. dollar reporting currency will approximate current rates.

ABOUT MAGNA

We are a leading global automotive supplier with 306 manufacturing operations and 92 product development, engineering and sales centres in 29 countries. We have over 147,000 employees focused on delivering superior value to our customers through innovative products and processes, and World Class Manufacturing. These figures include manufacturing operations, product development, engineering and sales centres and employees in equity-accounted operations. Our product capabilities include producing body, chassis, exterior, seating, powertrain, electronic, vision, closure and roof systems and modules, as well as complete vehicle engineering and contract manufacturing. Our common shares trade on the Toronto Stock Exchange (MG) and the New York Stock Exchange (MGA). For further information about Magna, visit our website at www.magna.com.

We will hold a conference call for interested analysts and shareholders to discuss our first quarter results on Thursday, May 5, 2016 at 2:30 p.m. EDT. The conference call will be chaired by Don Walker, Chief Executive Officer. The number to use for this call is 1-888-612-1048. The number for overseas callers is 1-416-981-9080. Please call in at least 10 minutes prior to the call. We will also webcast the conference call at www.magna.com . The slide presentation accompanying the conference call will be available on our website Thursday afternoon prior to the call.

FORWARD‘LOOKING STATEMENTS

This press release contains statements that constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation, including, but not limited to, statements relating to: Magna's forecasts of light vehicle production in North America and Europe; expected consolidated sales, based on such light vehicle production volumes; production sales, including expected split by segment, in its North America, Europe, Asia and Rest of World segments for 2016; complete vehicle assembly sales; consolidated EBIT margin, net interest expense; effective income tax rate; fixed asset expenditures; our ability to capitalize on powertrain opportunities and future changes in the global automotive industry as a result of our acquisition of Getrag; and future returns of capital to our shareholders, including through dividends or share repurchases. The forward-looking information in this document is presented for the purpose of providing information about management's current expectations and plans and such information may not be appropriate for other purposes. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, objectives or economic performance, or the assumptions underlying any of the foregoing, and other statements that are not recitations of historical fact. We use words such as "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "forecast", "outlook", "project", "estimate" and similar expressions suggesting future outcomes or events to identify forward-looking statements. Any such forward-looking statements are based on information currently available to us, and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks, assumptions and uncertainties, many of which are beyond our control, and the effects of which can be difficult to predict, including, without limitation: the potential for a deterioration of economic conditions or an extended period of economic uncertainty; declines in consumer confidence and the impact on production volume levels; fluctuations in relative currency values; continuing global or regional economic uncertainty; restructuring, downsizing and/or other significant non-recurring costs; underperformance of one or more of our operating divisions; ongoing pricing pressures, including our ability to offset price concessions demanded by our customers; our ability to successfully launch material new or takeover business; our ability to successfully identify, complete and integrate acquisitions or achieve anticipated synergies; our ability to conduct appropriate due diligence on acquisition targets; an increase in our risk profile as a result of completed acquisitions; shifts in market share away from our top customers; shifts in market shares among vehicles or vehicle segments, or shifts away from vehicles on which we have significant content; inability to sustain or grow our business; risks of conducting business in foreign markets, including China, India, Eastern Europe, Brazil and other non-traditional markets for us; a prolonged disruption in the supply of components to us from our suppliers; work stoppages and labour relations disputes; scheduled shutdowns of our customers' production facilities (typically in the third and fourth quarters of each calendar year); our ability to successfully compete with other automotive suppliers; a reduction in outsourcing by our customers or the loss of a material production or assembly program; the termination or non-renewal by our customers of any material production purchase order; our ability to consistently develop innovative products or processes; exposure to, and ability to offset, volatile commodities prices; warranty and recall costs; restructuring actions by OEMs, including plant closures; shutdown of our or our customers' or sub-suppliers' production facilities due to a labour disruption; risk of production disruptions due to natural disasters or catastrophic event; the security and reliability of our information technology systems; pension liabilities; legal claims and/or regulatory actions against us; changes in our mix of earnings between jurisdictions with lower tax rates and those with higher tax rates, as well as our ability to fully benefit tax losses; impairment charges related to goodwill, long-lived assets and deferred tax assets; other potential tax exposures; changes in credit ratings assigned to us; changes in laws and governmental regulations; costs associated with compliance with environmental laws and regulations; liquidity risks; inability to achieve future investment returns that equal or exceed past returns; the unpredictability of, and fluctuation in, the trading price of our Common Shares; and other factors set out in our Annual Information Form filed with securities commissions in Canada and our annual report on Form 40-F filed with the United States Securities and Exchange Commission, and subsequent filings. In evaluating forward-looking statements, we caution readers not to place undue reliance on any forward-looking statements and readers should specifically consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements. Unless otherwise required by applicable securities laws, we do not intend, nor do we undertake any obligation, to update or revise any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.

For further information about Magna, please see our website at www.magna.com . Copies of financial data and other publicly filed documents are available through the internet on the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) which can be accessed at www.sedar.com and on the United States Securities and Exchange Commission's Electronic Data Gathering, Analysis and Retrieval System (EDGAR) which can be accessed at www.sec.gov

MAGNA INTERNATIONAL INC. Management's Discussion and Analysis of Results of Operations and Financial Position

Unless otherwise noted, all amounts in this Management's Discussion and Analysis of Results of Operations and Financial Position ("MD&A") are in U.S. dollars and all tabular amounts are in millions of U.S. dollars, except per share figures, which are in U.S. dollars. When we use the terms "we", "us", "our" or "Magna", we are referring to Magna International Inc. and its subsidiaries and jointly controlled entities, unless the context otherwise requires.

In 2015, we sold substantially all of our interiors operations (excluding our seating operations). The assets and liabilities, and operating results for the previously reported interiors operations are presented as discontinued operations and have therefore been excluded from both continuing operations and segment results for all periods presented in the attached financial statements. This Management's Discussion and Analysis reflects the results of continuing operations, unless otherwise noted.

This MD&A should be read in conjunction with the unaudited interim consolidated financial statements for the three months ended March 31, 2016 included in this press release, and the audited consolidated financial statements and MD&A for the year ended December 31, 2015 included in our 2015 Annual Report to Shareholders.

This MD&A has been prepared as at May 4, 2016.

OVERVIEW

Our Business

We are a leading global automotive supplier with 306 manufacturing operations and 92 product development, engineering and sales centres in 29 countries. We have over 147,000 employees focused on delivering superior value to our customers through innovative products and processes, and World Class Manufacturing. These figures include manufacturing operations, product development, engineering and sales centres and employees in equity-accounted operations. Our product capabilities include producing body, chassis, exterior, seating, powertrain, electronic, vision, closure and roof systems and modules, as well as complete vehicle engineering and contract manufacturing. Our common shares trade on the Toronto Stock Exchange (MG) and the New York Stock Exchange (MGA). For further information about Magna, visit our website at www.magna.com.

Industry Trends and Risks

Our operating results are primarily dependent upon the levels of North American and European car and light truck production by our customers and the relative amount of content we have on various programs. Original equipment manufacturers ("OEMs") production volumes in different regions may be impacted by factors which may vary from one region to the next, including but not limited to: general economic and political conditions; consumer confidence levels; interest rates; credit availability; energy and fuel prices; relative currency values; commodities prices; international conflicts; labour relations issues; regulatory requirements; trade agreements; infrastructure; legislative changes; and environmental emissions and safety standards. These factors together with other factors affecting our performance such as: operational inefficiencies; costs incurred to launch new or takeover business; price reduction pressures from our customers; warranty and recall costs; commodities and scrap prices; restructuring, downsizing and other significant non-recurring costs; and the financial condition of our supply base, are discussed in our Annual Information Form and Annual Report on Form 40-F, each in respect of the year ended December 31, 2015, and remain substantially unchanged in respect of the first quarter ended March 31, 2016, except to the extent that we are subject to higher warranty risks in the future as a result of the completion of the Getrag acquisition in the first quarter of 2016.

HIGHLIGHTS

  • Light vehicle production remained strong in our two largest markets. North American and European light vehicle production increased 10% and 7%, respectively, compared to the first quarter of 2015;
  • Our sales increased 15% to $8.90 billion, compared to $7.77 billion in the first quarter of 2015;
  • Adjusted EBIT [(1)] increased 11% to $698 million;
  • Diluted earnings per share from continuing operations rose 11% to $1.22, compared to $1.10 in the first quarter of 2015;
  • We generated cash flow from operations of $298 million;
  • We completed the acquisition of the Getrag Group of Companies ("Getrag"), one of the world's leading independent suppliers of automotive transmissions, and a leader in the market for dual-clutch transmissions ("DCTs"), a product which is expected to experience high growth over the next decade;
  • We returned $300 million to shareholders in the form of share repurchases; and
  • We returned $95 million to shareholders in the form of dividends including a $0.03 increase in cash dividends paid per Common Share to $0.25.

1

We believe Adjusted EBIT is the most appropriate measure of operational profitability or loss for our reporting segments. Adjusted EBIT represents income from operations before income taxes; interest expense, net; and other expense, net.

RESULTS OF OPERATIONS

Average Foreign Exchange







For the three months







ended March 31,







2016

2015

Change










1 Canadian dollar equals U.S. dollars






0.728

0.808

- 10%

1 euro equals U.S. dollars






1.103

1.129

- 2%

1 British pound equals U.S. dollars






1.431

1.517

- 6%

1 Chinese renminbi equals U.S. dollars






0.153

0.160

- 4%

1 Brazilian real equals U.S. dollars






0.256

0.351

- 27%

The preceding table reflects the average foreign exchange rates between the most common currencies in which we conduct business and our U.S. dollar reporting currency. The changes in these foreign exchange rates for the three months ended March 31, 2016 impacted the reported U.S. dollar amounts of our sales, expenses and income.

The results of operations whose functional currency is not the U.S. dollar are translated into U.S. dollars using the average exchange rates in the table above for the relevant period. Throughout this MD&A, reference is made to the impact of translation of foreign operations on reported U.S. dollar amounts where relevant.

Our results can also be affected by the impact of movements in exchange rates on foreign currency transactions (such as raw material purchases or sales denominated in foreign currencies). However, as a result of hedging programs employed by us, foreign currency transactions in the current period have not been fully impacted by movements in exchange rates. We record foreign currency transactions at the hedged rate where applicable.

Finally, foreign exchange gains and losses on revaluation and/or settlement of monetary items denominated in a currency other than an operation's functional currency impact reported results. These gains and losses are recorded in selling, general and administrative expense.

RESULTS OF OPERATIONS – FOR THE THREE MONTHS ENDED MARCH 31, 2016

Sales




For the three months





ended March 31,






2016


2015

Change










Vehicle Production Volumes(millions of units)







North America




4.511


4.106

+

10%


Europe




5.613


5.226

+

7%











Sales










External Production











North America



$

4,764

$

4,225

+

13%



Europe




2,266


1,895

+

20%



Asia




507


403

+

26%



Rest of World




80


131

-

39%


Complete Vehicle Assembly




596


600

-

1%


Tooling, Engineering and Other




687


518

+

33%

Total Sales



$

8,900

$

7,772

+

15%

External Production Sales - North America

Reported external production sales in North America increased 13% or $539 million to $4.76 billion for the first quarter of 2016 compared to $4.23 billion for the first quarter of 2015, primarily as a result of:

  • the launch of new programs during or subsequent to the first quarter of 2015, including the:
  • higher production volumes on certain existing programs; and
  • the acquisition of Getrag during the first quarter of 2016, which positively impacted sales by $160 million.

These factors were partially offset by:

  • a $155 million decrease in reported U.S. dollar sales primarily as a result of the weakening of the Canadian dollar against the U.S. dollar;
  • lower production volumes on the Chevrolet Cruze as a result of the changeover to and production ramp up of the next generation model; and
  • net customer price concessions subsequent to the first quarter of 2015.

External Production Sales - Europe

Reported external production sales in Europe increased 20% or $371 million to $2.27 billion for the first quarter of 2016 compared to $1.90 billion for the first quarter of 2015, primarily as a result of:

  • acquisitions during or subsequent to the first quarter of 2015, which positively impacted sales by $360 million, including Getrag and Stadco Automotive Ltd. ("Stadco");
  • the launch of new programs during or subsequent to the first quarter of 2015, including the:
    • Audi A4 and A4 Cabrio;
    • BMW X1;
    • Volkswagen Superb; and
    • Volkswagen Caddy.

These factors were partially offset by:

  • a $67 million decrease in reported U.S. dollar sales primarily as a result of the weakening of foreign currencies against the U.S. dollar, including the euro, British pound, Turkish lira and Russian ruble;
  • the sale of our battery pack business during the second quarter of 2015;
  • programs that ended production during or subsequent to the first quarter of 2015; and
  • net customer price concessions subsequent to the first quarter of 2015.

External Production Sales - Asia

Reported external production sales in Asia increased 26% or $104 million to $507 million for the first quarter of 2016 compared to $403 million for the first quarter of 2015, primarily as a result of:

  • acquisitions during or subsequent to the first quarter of 2015, including the partnership agreement in China ("the Xingqiaorui Partnership") with Chongqing Xingqiaorui and the acquisition of Getrag, which positively impacted sales by $69 million; and
  • the launch of new programs during or subsequent to the first quarter of 2015, primarily in China.

These factors were partially offset by:

  • a $27 million decrease in reported U.S. dollar sales primarily as a result of the weakening of the Chinese renminbi against the U.S. dollar; and
  • net customer price concessions subsequent to the first quarter of 2015.

External Production Sales - Rest of World

Reported external production sales in Rest of World decreased 39% or $51 million to $80 million for the first quarter of 2016 compared to $131 million for the first quarter of 2015, primarily as a result of a $35 million decrease in reported U.S. dollar sales as a result of the weakening of foreign currencies against the U.S. dollar, including the Brazilian real and Argentine peso.

This factor decrease was partially offset by:

  • higher production volumes on certain existing programs;
  • the launch of new programs during or subsequent to the first quarter of 2015, primarily in Brazil; and
  • net customer price increases subsequent to the first quarter of 2015.

Complete Vehicle Assembly Sales


For the three months



ended March 31,



2016

2015

Change





Complete Vehicle Assembly Sales

$

596

$

600

- 1%





Complete Vehicle Assembly Volumes (Units)

23,235

27,343

- 15%

Reported complete vehicle assembly sales decreased $4 million, to $596 million for the first quarter of 2016 compared to $600 million for the first quarter of 2015 while assembly volumes decreased 15% or 4,108 units.

The decrease in complete vehicle assembly sales is primarily as a result of:

  • a decrease in assembly volumes for the MINI Countryman and Paceman, as these programs near the end of production;
  • the end of production of the Peugeot RCZ at our Magna Steyr facility during the third quarter of 2015; and
  • a $12 million decrease in reported U.S. dollar sales as a result of the weakening of the euro against the U.S. dollar.

These factors were partially offset by an increase in assembly volumes for the Mercedes-Benz G-Class which has a higher average selling price per vehicle compared to the MINI programs.

Tooling, Engineering and Other Sales

Reported tooling, engineering and other sales increased 33% or $169 million to $687 million for the first quarter of 2016 compared to $518 million for the first quarter of 2015.

In the first quarter of 2016, the major programs for which we recorded tooling, engineering and other sales were the:

  • Chevrolet Cruze;
  • Chrysler Pacifica;
  • Ford Figo Aspire;
  • GMC Acadia, Buick Enclave and Chevrolet Traverse;
  • Ford Escape;
  • BMW X5;
  • Chevrolet Equinox, Captivia and GMC Terrain;
  • BMW 5-Series;
  • Volkswagen Tiguan; and
  • Opel Astra.

In the first quarter of 2015, the major programs for which we recorded tooling, engineering and other sales were the:

  • Ford F-Series;
  • Skoda Fabia;
  • Honda HR-V and Vezel;
  • MINI Countryman;
  • Land Rover Discovery Sport;
  • Ford Edge;
  • BMW 1-Series; and
  • GMC Acadia, Buick Enclave and Chevrolet Traverse.

Acquisitions during or subsequent to the first quarter of 2015, including Getrag, had a favourable impact on our reported tooling, engineering and other sales, while the weakening of certain foreign currencies against the U.S. dollar had an unfavourable impact of $20 million on our reported tooling, engineering and other sales.

Cost of Goods Sold and Gross Margin


For the three months


ended March 31,


2016

2015




Sales

$

8,900

$

7,772




Cost of goods sold




Material

5,578

4,888


Direct labour

621

519


Overhead

1,420

1,261


7,619

6,668

Gross margin

$

1,281

$

1,104




Gross margin as a percentage of sales

14.4%

14.2%

Cost of goods sold increased $951 million to $7.62 billion for the first quarter of 2016 compared to $6.67 billion for the first quarter of 2015 primarily as a result of:

  • higher material, overhead and labour costs associated with the increase in sales;
  • operational inefficiencies at certain facilities, in particular at certain body and chassis operations in North America;
  • lower recoveries associated with scrap steel;
  • higher launch costs;
  • higher warranty costs of $11 million;
  • increased pre-operating costs incurred at new facilities; and
  • a greater amount of employee profit sharing.

These factors were partially offset by:

  • a decrease in reported U.S. dollar cost of goods sold as a result of the weakening of foreign currencies against the U.S. dollar, including the Canadian dollar, the euro, Chinese renminbi, British pound, Turkish lira, and Russian ruble;
  • productivity and efficiency improvements at certain facilities; and
  • decreased commodity costs.

Gross margin increased $177 million to $1.28 billion for the first quarter of 2016 compared to $1.10 billion for the first quarter of 2015 and gross margin as a percentage of sales increased to 14.4% for the first quarter of 2016 compared to 14.2% for the first quarter of 2015. The increase in gross margin as a percentage of sales was primarily due to:

  • productivity and efficiency improvements at certain facilities;
  • a decrease in the proportion of complete vehicle assembly sales relative to total sales, which have a higher material content than our consolidated average; and
  • decreased commodity costs.

These factors were partially offset by:

  • operational inefficiencies at certain facilities, in particular at certain body and chassis operations in North America;
  • higher launch costs;
  • lower recoveries associated with scrap steel;
  • an increase in the proportion of tooling, engineering and other sales relative to total sales, that have low or no margins;
  • higher warranty costs; and
  • increased pre-operating costs incurred at new facilities.

Depreciation and Amortization

Depreciation and amortization costs increased $52 million to $246 million for the first quarter of 2016 compared to $194 million for the first quarter of 2015. The higher depreciation and amortization was primarily as a result of acquisitions during or subsequent to the first quarter of 2015, including the acquisition of Getrag; the acquisition of Stadco; and the Xingqiaorui Partnership, and increased capital deployed at existing facilities partially offset by a decrease in reported U.S. dollar depreciation and amortization largely as a result of the weakening of certain foreign currencies against the U.S. dollar.

Selling, General and Administrative ("SG&A")

SG&A expense as a percentage of sales was 4.4% for the first quarter of 2016 compared to 4.2% for the first quarter of 2015. SG&A expense increased $62 million to $392 million for the first quarter of 2016 compared to $330 million for the first quarter of 2015 primarily as a result of:

  • net foreign exchange losses incurred in the first quarter of 2016 compared to net foreign exchange gains incurred in the first quarter of 2015;
  • acquisitions during or subsequent to the first quarter of 2015;
  • higher labour and benefit costs;
  • higher incentive and executive compensation;
  • higher costs to support our global compliance programs; and
  • costs related to the investment in our information technology infrastructure.

These factors were partially offset by:

  • the weakening of the Canadian dollar against the U.S. dollar; and
  • a favourable intellectual property infringement settlement in relation to our electronics business.

Equity Income

Equity income increased $4 million to $55 million for the first quarter of 2016 compared to $51 million for the first quarter of 2015 primarily as a result of the acquisition of Getrag in the first quarter of 2016.

Segment Analysis

Given the differences between the regions in which we operate, our operations are segmented on a geographic basis. Consistent with the above, our internal financial reporting separately segments key internal operating performance measures...


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