Magna International Q2 Profit Rises; Raises 2014 Total Sales Outlook

(RTTNews) - Canadian auto-parts supplier Magna International Inc. (MGA, MG.TO) reported that its net income attributable to the company for the second quarter ended June 30, 2014 rose to $510 million from the prior year's $415 million, with earnings per share improving to $2.32 from $1.78 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $2.22 per share for the quarter Analysts' estimates typically exclude special items.

Sales for the quarter rose to $9.464 billion from $8.962 billion in the prior year. Wall Street expected revenues of $9.36 billion.

The company said it achieved this sales increase in a period when vehicle production increased 3% in North America and 2% in Europe, both relative to the second quarter of 2013. In the second quarter of 2014, its North American, European and Asian production sales increased, while Rest of World production sales, complete vehicle assembly sales and tooling, engineering and other sales decreased, in each case relative to the comparable quarter in 2013.

Complete vehicle assembly sales decreased to $793 million for the second quarter of 2014 compared to $796 million for the second quarter of 2013, while complete vehicle assembly volumes decreased 11% to approximately 34,000 units.

The company noted that its board declared a quarterly dividend of $0.38 with respect to our outstanding Common Shares for the quarter ended June 30, 2014. This dividend is payable on September 12, 2014 to shareholders of record on August 29, 2014.

For fiscal 2014, the company now expects total sales to be in the range of $35.6 billion - $37.3 billion. Wall Street expect revenues of $36.17 billion for fiscal 2014. The company said in May that it expected total sales to a range of $34.9 billion to $36.6 billion.