Magna International Inc., a company that designs, develops and manufactures technologically advanced automotive systems, assemblies, modules and components, has reported increased sales for the first quarter ended March 31, 2008. The company attributes these increases to a rise in European sales, although it reports that North American production sales, complete vehicle assembly sales and tooling, engineering and other sales are down. The company posted sales of $6.6 billion for the first quarter, an increase of 3 percent over the first quarter of 2007. During this same time, North American and European average dollar content per vehicle increased 5 percent and 21 percent, respectively, over the comparable period in 2007. Also, during the first quarter of 2008, North American vehicle production declined 9 percent and European vehicle production declined 1 percent, each compared to the first quarter of 2007. Complete vehicle assembly sales decreased 2 percent to $1.09 billion for the first quarter of 2008 compared to $1.10 billion for the first quarter of 2007 and complete vehicle assembly volumes declined 28 percent to 43,546 units. During the first quarter of 2008, Magna's operating income was $286 million, net income was $207 million and diluted earnings per share were $1.78. Operating income decreased $19 million, net income decreased $11 million, and diluted earnings per share decreased $0.18, each compared to the first quarter of 2007. During the three months ended March 31, 2008, the company generated cash from operations before changes in non-cash operating assets and liabilities of $442 million, and invested $218 million in non-cash operating assets and liabilities. Total investment activities for the first quarter of 2008 were $168 million, including $128 million in fixed asset additions, a $32 million increase in investments and other assets, and $8 million to purchase subsidiaries. In a related press release, Magna announced that its board of directors recently declared a quarterly dividend with respect to its outstanding Class A Subordinate Voting Shares and Class B Shares for the quarter ended March 31, 2008. The dividend of $0.36 per share is payable on June 16, 2008 to shareholders of record on May 30, 2008. For the full year 2008, the company expects consolidated sales to be between $25.5 billion and $26.8 billion, based on full year 2008 light vehicle production volumes of approximately 14.2 million units in North America and approximately 15.6 million units in Europe. Full year 2008 average dollar content per vehicle is expected to be between $845 and $875 in North America and between $485 and $510 in Europe. Magna expects full year 2008 complete vehicle assembly sales to be between $3.9 billion and $4.2 billion. In addition, the company expects that full year 2008 spending for fixed assets will be in the range of $900 million to $950 million. For more information about Magna International, Inc., visit the company's Web site. |
