Magna International Inc. today reported financial results for the fourth quarter and year ended December 31, 2016.
| THREE MONTHS ENDED DECEMBER 31, |
YEAR ENDED DECEMBER 31, |
|||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||
| Sales | $ | 9,253 | $ | 8,568 | $ | 36,445 | $ | 32,134 | ||||
| Income from continuing operations before income taxes | $ | 646 | $ | 624 | $ | 2,780 | $ | 2,651 | ||||
| Net income from continuing operations attributable to Magna International Inc. | $ | 478 | $ | 483 | $ | 2,031 | $ | 1,946 | ||||
| Adjusted EBIT(1) | $ | 696 | $ | 656 | $ | 2,898 | $ | 2,529 | ||||
| Diluted earnings per share from continuing operations | $ | 1.24 | $ | 1.19 | $ | 5.16 | $ | 4.72 | ||||
| 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 (income), net. |
THREE MONTHS ENDED DECEMBER 31, 2016
We posted sales of $9.25 billion for the fourth quarter ended December 31, 2016, an increase of 8% over the fourth quarter of 2015. This strong year over year growth was achieved despite both North American and European light vehicle production decreasing 4% compared to the fourth quarter of 2015. Our complete vehicle assembly volumes decreased 70%, largely reflecting the end of production of the MINI Countryman and Paceman in the fourth quarter of 2016.
During the fourth quarter of 2016, income from continuing operations before income taxes was $646 million, an increase of 4% compared to the fourth quarter of 2015. Net income from continuing operations attributable to Magna International Inc. was $478 million, a decrease of 1% compared to the fourth quarter of 2015. Diluted earnings per share from continuing operations increased $0.05 in the fourth quarter of 2016, which includes the favourable impact of a reduced share count. Excluding unusual items, income from continuing operations before income taxes, net income from continuing operations attributable to Magna International Inc., and diluted earnings per share from continuing operations increased 6%, 1%, and 7%, respectively, in the fourth quarter of 2016 compared to the fourth quarter of 2015.
During the fourth quarter ended December 31, 2016, we generated cash from operations of $878 million before changes in operating assets and liabilities, and $840 million in operating assets and liabilities. Total investment activities for the fourth quarter of 2016 were $934 million, including $662 million in fixed asset additions, $155 million in investments and other assets and $117 million to purchase subsidiaries.
YEAR ENDED DECEMBER 31, 2016
We posted record sales of $36.45 billion for the year ended December 31, 2016, an increase of 13% from the year ended December 31, 2015. In comparison, both North American and European light vehicle production increased 2%, in 2016 compared to 2015. Our complete vehicle assembly volumes decreased 28%, largely reflecting the end of production of the MINI Countryman and Paceman in the fourth quarter of 2016.
During 2016, income from continuing operations before income taxes was $2.78 billion and net income from continuing operations attributable to Magna International Inc. was $2.03 billion, increases of $129 million and $85 million, respectively, both compared to 2015. Diluted earnings per share from continuing operations increased $0.44 or 9% in 2016, which includes the favourable impact of a reduced share count. Excluding unusual items, income from continuing operations before income taxes, net income from continuing operations attributable to Magna International Inc., and diluted earnings per share from continuing operations increased 13%, 11%, and 16%, respectively, in 2016 compared to 2015.
During December 31, 2016, we generated cash from operations before changes in operating assets and liabilities of $3.31 billion, and $81 million in operating assets and liabilities. Total investment activities for 2016 were $4.22 billion, including $1.93 billion to purchase subsidiaries, $1.81 billion in fixed asset additions and $478 million in investments and other assets.
A more detailed discussion of our consolidated financial results for the fourth quarter and year ended December 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.
