Magna International Inc. today reported financial results for the second quarter ended June 30, 2021.
Please click HERE for full second quarter Financial Statements and MD&A.
| THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||
| Reported | ||||||||||||||
| Sales | $ | 9,034 | $ | 4,293 | $ | 19,213 | $ | 12,950 | ||||||
| Income (loss) from operations before income taxes | $ | 540 | $ | (789 | ) | $ | 1,345 | $ | (403 | ) | ||||
| Net income (loss) attributable to Magna International Inc. | $ | 424 | $ | (647 | ) | $ | 1,039 | $ | (386 | ) | ||||
| Diluted earnings (loss) per share | $ | 1.40 | $ | (2.17 | ) | $ | 3.42 | $ | (1.29 | ) | ||||
| Non-GAAP Financial Measures(1) | ||||||||||||||
| Adjusted EBIT | $ | 557 | $ | (600 | ) | $ | 1,327 | $ | (197 | ) | ||||
| Adjusted diluted earnings (loss) per share | $ | 1.40 | $ | (1.71 | ) | $ | 3.27 | $ | (0.83 | ) | ||||
| All results are reported in millions of U.S. dollars, except per share figures, which are in U.S. dollars | ||||||||||||||
| (1) Adjusted EBIT and Adjusted diluted earnings per share are Non-GAAP financial measures that have no standardized meaning under U.S. GAAP, and as a result may not be comparable to the calculation of similar measures by other companies. A reconciliation of these Non-GAAP financial measures is included in the back of this press release. | ||||||||||||||
Three months ended June 30, 2021
As a result of significant production disruptions due to the global semiconductor chip shortage that continues to negatively impact global light vehicle production, our sales, Adjusted EBIT and diluted earnings per share came in well below our expectations for the second quarter of 2021.
The second quarter of 2020 included unprecedented, industry-wide production suspensions due to the COVID-19 pandemic, while the second quarter of 2021 included the production disruptions due to the ongoing global semiconductor chip shortage, making the quarters difficult to compare.
We posted sales of $9.0 billion for the second quarter of 2021, an increase of 110% over the second quarter of 2020, as global light vehicle production increased 58%, largely driven by increases in North America and Europe.
Adjusted EBIT of $557 million in the second quarter of 2021 increased $1.2 billion over the second quarter of 2020, largely driven by higher sales.
Income (loss) from operations before income taxes was $540 million for the second quarter of 2021 compared to $(789) million in the second quarter of 2020. Included in income from operations before income taxes in the second quarter of 2021 were Other expense, net items totaling $6 million, comprised of net restructuring costs, partially offset by unrealized gains related to the revaluation of public company warrants and certain public and private equity investments. Included in loss from operations before income taxes in the second quarter of 2020 were Other expense, net items totaling $168 million comprised of restructuring and impairment charges. Excluding Other expense, net from both periods, income from operations before income taxes increased $1.2 billion in the second quarter of 2021 compared to the second quarter of 2020.
Net income (loss) attributable to Magna International Inc. was $424 million for the second quarter of 2021 compared to $(647) million for the second quarter of 2020. Included in net income attributable to Magna International Inc. in the second quarters of 2021 and 2020 were Other expense, net items totaling $2 million and $136 million after tax, respectively. Excluding Other income, net from both periods, net income attributable to Magna International Inc. increased $937 million in the second quarter of 2021 compared to the second quarter of 2020.
Diluted earnings (loss) per share increased to $1.40 in the second quarter of 2021, compared to $(2.17) in the comparable period and adjusted diluted earnings (loss) per share increased 182% to $1.40 compared to $(1.71).
In the second quarter of 2021, we generated cash from operations before changes in operating assets and liabilities of $777 million and used $249 million in operating assets and liabilities. Investment activities for the second quarter of 2021 included $277 million in fixed asset additions, a $93 million increase in investments, other assets and intangible assets, $21 million in acquisitions, and $17 million in public and private equity investments.
Six months ended June 30, 2021
We posted sales of $19.2 billion for the six months ended June 30, 2021, an increase of 48% from the six months ended June 30, 2020, as global light vehicle production increased 36%, largely driven by a 41% increase in North America and a 37% increase in Europe.
Adjusted EBIT was $1.3 billion for the six months ended June 30, 2021 compared to an Adjusted EBIT loss of $197 million for the six months ended June 30, 2020, largely driven by higher sales.
During the six months ended June 30, 2021, income from operations before income taxes was $1.3 billion, net income attributable to Magna International Inc. was $1.0 billion and diluted earnings per share was $3.42, increases of $1.7 billion, $1.4 billion and $4.71, respectively, each compared to the first six months of 2020.
During the first six months ended June 30, 2021, Adjusted EBIT increased to $1.3 billion and Adjusted diluted earnings per share increased to $3.27, each compared to the first six months of 2020.
For the six months ended June 30, 2021, we generated cash from operations before changes in operating assets and liabilities of $1.7 billion and used $559 million in operating assets and liabilities. Investment activities for the six months ended June 30, 2021 included $489 million in fixed asset additions, a $197 million increase in investments, other assets and intangible assets, and $20 million in public and private equity investments. We also assumed net cash of $18 million related to business combinations.
Please click here to view the full press release.
SOURCE: Magna
