Magna International Inc. (TSX: MG; NYSE: MGA) today announced its financial outlook for 2016 and sales expectations for 2018. All amounts are in U.S. dollars.
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2016 Outlook |
2018 Expectations |
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Light Vehicle Production (Units) |
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North America |
18.0 million |
18.6 million |
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Europe |
20.9 million |
22.2 million |
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Production Sales |
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North America |
$19.2 billion – $19.8 billion |
$20.2 billion – $21.0 billion |
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Europe |
$8.6 billion – $9.0 billion |
$9.5 billion – $10.1 billion |
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Asia |
$2.1 billion – $2.3 billion |
$3.0 billion – $3.3 billion |
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Rest of World |
$0.4 billion – $0.5 billion |
$0.4 billion – $0.6 billion |
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Total Production Sales |
$30.3 billion – $31.6 billion |
$33.1 billion – $35.0 billion |
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Complete Vehicle Assembly Sales |
$1.7 billion – $2.0 billion |
$5.3 billion – $5.8 billion |
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Total Sales |
$34.6 billion – $36.3 billion |
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Adjusted EBIT Margin(1) |
High 7% range |
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Interest Expense |
Approximately $80 million |
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Tax Rate(2) |
25% – 26% |
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Capital Spending |
$1.8 billion – $2.0 billion |
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(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 (income), net.
(2) Excluding other expense (income), net
In this outlook we have assumed no material unannounced 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 year end 2015 rates.
Don Walker, Magna’s Chief Executive Officer, commented: “Magna has a tremendous amount of growth ahead, reflecting new business awards as well as recently completed acquisitions, including Getrag. We are highly focused on ensuring that we deliver strong returns on this sales growth.”
We will be making a presentation at the Deutsche Bank Global Auto Industry Conference on Wednesday, January 13, 2016 at 10:15 a.m. EST during which we will review the details of our Outlook. The presentation will be webcast and available on our website at www.magna.com. The slides accompanying the presentation will be available on our website Wednesday morning by 7 a.m. EST.
