...must be Halloween.
Cheers.
10:20 AM EDT, 11/01/2024 (MT Newswires) -- Magna (MG.TO, MGA) was at last look up more than 8% on the TSX despite reporting Friday Q3 adjusted earnings Friday of US$1.28 per diluted share, down from $1.46 a year earlier. Analysts polled by Capital IQ expected $1.40.
Sales for the quarter ended Sept. 30 were $10.28 billion, compared with $10.69 billion a year earlier. Analysts polled by Capital IQ expected $10.39 billion. Magna said Q3 sales decreased in line with the 4% reduction in global light vehicle production
The company said its board approved a one-year normal course issuer bid to purchase up to about 28.5 million of its common shares, or about 10% of its public float, expected to start Nov. 7, subject to the Toronto Stock Exchange's approval.
"We continue to mitigate industry headwinds including lower production volumes in each of our core regions. Our ongoing initiatives and results to date reinforce our conviction in our free cashflow outlook this year and beyond. As we continuously seek to optimize value creation, we are resuming share repurchases in the fourth quarter -- ahead of our prior plan," said Swamy Kotagiri, Magna's Chief Executive Officer.
Magna provided updated 2024 outlook assumptions lower than in August 2024 and an updated 2024 outlook that was mixed in comparison to August 2024.
It said: "Our operating results are primarily dependent on the levels of North American, European, and Chinese car and light truck production by our customers. While we supply systems and components to every major original equipment manufacturer, we do not supply systems and components for every vehicle, nor is the value of our content consistent from one vehicle to the next. As a result, customer and program mix relative to market trends, as well as the value of our content on specific vehicle production programs, are also important drivers of our results.
"OEM production volumes are generally aligned with vehicle sales levels and thus affected by changes in such levels. Aside from vehicle sales levels, production volumes are typically impacted by a range of factors, including: labour disruptions; free trade arrangements and tariffs; relative currency values; commodities prices; supply chains and infrastructure; availability and relative cost of skilled labour; regulatory frameworks; and other factors.
"Overall vehicle sales levels are significantly affected by changes in consumer confidence levels, which may in turn be impacted by consumer perceptions and general trends related to the job, housing, and stock markets, as well as other macroeconomic and political factors. Other factors which typically impact vehicle sales levels and thus production volumes include: vehicle affordability; interest rates and/or availability of credit; fuel and energy prices; relative currency values; uncertainty as to consumer acceptance of EVs; government subsidies to consumers for the purchase of low- and zero-emission vehicles; and other factors."
Price: 59.50, Change: +4.53, Percent Change: +8.24