Canadian auto-industry supplier Magna International (NYSE: MGA) said on Feb. 19 that its fourth-quarter net income jumped 68% from a year ago, to $738 million, as its automaker clients produced more vehicles than expected. On an adjusted basis, excluding one-time items, Magna earned $2.83 per share in the fourth quarter, well ahead of the $2.03-PER-SHARE Wall Street consensus estimate reported by Thompson Reuters. Magna's fourth-quarter revenue of $10.57 billion was also above the consensus estimate of $10.12 billion. As expected, Magna's full-year 2020 net income fell from $1.76 billion in 2019 to $757 million. Despite the expected decline, the final result was also above Wall Street expectations. Image source: Magna International. What happened at Magna in 2020 Magna, like other auto suppliers, had a lot to manage amid the COVID-19 pandemic, including factory shutdowns and restarts at facilities (over 300 of them, in Magna's case) throughout the world. But the company's business recovered and grew (by about 5%) in the second half of 2020, setting the stage for a good 2021. Highlights: An ongoing cost-reduction program was successful, reducing costs by about $200 million per year going forward. Magna won expanded collaborations with electric-vehicle start-up Fisker (NYSE: FSR) and battery maker LG Chem (OTC:LGCLF). Magna's contract-manufacturing arm, Magna Steyr, will build Fisker's Ocean electric SUV. Magna's sales growth in North America, Europe, and Asia outpaced the overall markets' in the second half of 2020, on rising demand for components for advanced driver-assist systems and electric vehicles. Magna's adjusted EBIT (earnings before interest and tax) margin rose to 10.4% in the fourth quarter from 6.3% a year ago -- a strong result for an auto supplier. Magna's fourth-quarter result also benefited from a good year-over-year comparison: The company's results were hit hard in the fourth quarter of 2019 by the protracted strike against General Motors' (NYSE: GM) U.S. factories. Cash, debt, and one-time items Magna ended 2020 with $3.27 billion in cash on hand, up from $1.28 billion at the end of 2019. Against that, it had $3.97 billion of long-term debt at year end versus $3.06 billion at the end of 2019. Magna took about $100 million in one-time charges in the fourth quarter, most of which were related to restructuring efforts, including that cost-reduction push and the closure of two Magna factories related to Ford Motor Company's (NYSE: F) decision to end its manufacturing in Brazil. Looking ahead: Magna's guidance for 2021 and 2023 Magna provided guidance for 2021 and a forecast of its sales and margin in 2023. Metric 2021 Guidance 2023 Guidance Revenue Between $40 billion and $41.6 billion Between $43 billion and $45.5 billion Adjusted EBIT margin Between 7.1% and 7.5% Between 8.1% and 8.6% Net income Between $2.1 billion and $2.3 billion Not provided Capital spending About $1.6 billion Not provided Data source: Magna International. "Adjusted EBIT" is earnings before interest and tax minus one-time items. Magna said that it will update the 2021 guidance as the year unfolds. The raw numbers Note that while Magna is a Canadian company, it reports its results in U.S. dollars. Metric Q4 2020 Q4 2019 Full Year 2020 Full Year 2019 Revenue $10.57 billion $9.39 billion $32.65 billion $39.43 billion Adjusted EBIT $1.1 billion $590 million $1.68 billion $2.55 billion Adjusted EBIT margin 10.4% 6.3% 5.1% 6.5% Net income $738 million $440 million $757 million $1.77 billion Adjusted earnings per share $2.83 $1.41 $3.95 $6.05 Data source: Magna International. "EBIT" is earnings before interest and tax. "Adjusted" figures exclude one-time items. 10 stocks we like better than Magna International Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Magna International Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 John Rosevear owns shares of Fisker, Inc., Ford, and General Motors. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source