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Magna announces outlook and regulatory update



                Magna announces outlook and regulatory update

PR Newswire

AURORA, ON, Jan. 16, 2013

AURORA, ON, Jan. 16, 2013 /PRNewswire/  - Magna International Inc. (TSX:  MG), 
(NYSE: MGA) today announced its financial  outlook for 2013.  All amounts  are 
in U.S. dollars.

Don Walker, Magna's Chief Executive  Officer commented: "Our outlook  reflects 
the progress  we are  making  in expanding  Magna's  business outside  of  our 
traditional markets.  Our growing footprint  in high growth markets,  combined 
with our strong positions  in North America and  Europe, further enhances  our 
ability to support our customers on  global platforms.  In Europe, our  recent 
focus has been on improving operations and bottom-line results.  We have  made 
progress and  continue  to implement  restructuring  actions that  we  believe 
should contribute  over time  to further  improvement in  our future  European 
financial results."

2013 OUTLOOK

                                                                              
Light Vehicle Production (Units)                                              
        North America                            15.3 million                 
        Western Europe                           12.0 million 
Production Sales                                                              
        North America                    $15.3 billion - $15.7 billion
        Europe                            $9.0 billion - $9.3 billion        
        Rest of World                     $2.2 billion - $2.5 billion
        Total Production Sales           $26.5 billion - $27.5 billion        
                                                                              
Complete Vehicle Assembly Sales           $2.5 billion - $2.8 billion         
                                                                              
Total Sales                              $31.3 billion - $32.7 billion        
                                                                              
Operating Margin*✝                               Mid 5% range                 
                                                                              
Tax Rate*                                     Approximately 24.5%             
                                                                              
Capital Spending                          Approximately $1.4 billion          
                                                                              
* Excluding other expense/income, net (unusual items)
✝Excluding $158 million amortization of intangibles related to acquisition of
E-Car

In addition to our 2013  sales outlook above, we  expect an increase in  total 
production sales over the two-year period  from 2013 to 2015 of  approximately 
$2.2 billion, based on assumed full year 2015 light vehicle production volumes
of approximately 16.7 million  units in North  America and approximately  12.8 
million units in Western Europe.  We  expect the increase in total  production 
sales to be split  approximately as follows by  segment: 70% in North  America 
and 40% in Rest of World, offset by a 10% decline in Europe.

In this outlook we have assumed no material 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 2012 rates.

REGULATORY UPDATE

Magna also announced that the previously disclosed investigation by the United
States Department of Justice  ("DoJ") into certain  practices relating to  the 
Company's tooling sales has been concluded  without any action being taken  by 
the DoJ.

ABOUT MAGNA
We are a leading global automotive supplier with 313 manufacturing  operations 
and 88 product development, engineering and sales centres in 29 countries. Our
over 118,000  employees  are  focused  on delivering  superior  value  to  our 
customers through  innovative processes  built  on World  Class  Manufacturing 
processes.   Our  product  capabilities  include  body,  chassis,   interiors, 
exteriors,  seating,  powertrain,  electronics,  mirrors,  closures  and  roof 
systems and  modules, as  well as  complete vehicle  engineering and  contract 
manufacturing.   Our common shares  trade on the  Toronto Stock Exchange  (MG) 
and the New York  Stock Exchange (MGA). For  further information about  Magna, 
visit our website at www.magna.com.

FORWARD LOOKING STATEMENTS
This press release may  contain statements that, to  the extent that they  are 
not recitations of historical  fact, constitute "forward-looking  information" 
or "forward-looking statements"  within the meaning  of applicable  securities 
legislation, including,  but  not  limited to,  Magna's:  forecasts  of  light 
vehicle production in North America and Western Europe; expected  consolidated 
sales, based on such light vehicle production volumes; production sales in its
North America, Europe and Rest of  World segments, including for years  beyond 
2013;  complete  vehicle  assembly   sales;  consolidated  operating   margin; 
effective income tax rate; fixed asset expenditures; implementation of  action 
plans and  operating results  improvement in  Europe; growth  of our  business 
outside of  traditional  markets  and  expansion  in  high  growth  regions  . 
Forward-looking statements  may include  financial and  other projections,  as 
well  as  statements  regarding  our  future  plans,  objectives  or  economic 
performance, or the assumptions underlying any of the foregoing. We use  words 
such  as  "may",  "would",  "could",  "should"  "will",  "likely",   "expect", 
"anticipate", "believe", "intend",  "plan", "forecast", "outlook",  "project", 
"estimate" and similar  expressions suggesting  future outcomes  or events  to 
identify forward-looking statements. Any  such forward-looking statements  are 
based on information currently available to  us, and are based on  assumptions 
and analyses made  by us  in light  of our  experience and  our perception  of 
historical trends,  current conditions  and expected  future developments,  as 
well as  other  factors  we  believe are  appropriate  in  the  circumstances. 
However,  whether  actual  results  and  developments  will  conform  to   our 
expectations and predictions is subject to a number of risks, assumptions  and 
uncertainties, many of which are beyond our control, and the effects of  which 
can be  difficult  to  predict. These  risks,  assumptions  and  uncertainties 
include, without limitation, the impact of: the potential for a  deterioration 
of economic conditions or an extended period of economic uncertainty; declines
in consumer  confidence and  the  impact on  production volume  levels;  risks 
arising from uncertain economic conditions in Europe, including the  potential 
for a deterioration of sales of our three largest German-based OEM  customers; 
restructuring  actions  by  OEMs,  including  plant  closures;  restructuring, 
downsizing   and/or   other   significant   non-recurring   costs;   continued 
underperformance of one  or more of  our operating divisions;  our ability  to 
successfully launch material new or takeover business; liquidity risks;  risks 
arising due to  the failure of  a major financial  institution; bankruptcy  or 
insolvency of a  major customer  or supplier;  a prolonged  disruption in  the 
supply of components to us from our suppliers; scheduled production  shutdowns 
of our customers'  production facilities  (typically in the  third and  fourth 
quarters of  each  calendar  year);  shutdown of  our  or  our  customers'  or 
sub-suppliers' production facilities due to  a labour disruption; our  ability 
to successfully  compete  with  other automotive  suppliers;  a  reduction  in 
outsourcing by our customers or the loss of a material production or  assembly 
program; the  termination or  non-renewal  by our  customers of  any  material 
production purchase order;  a shift  away from  technologies in  which we  are 
investing; impairment  charges  related  to goodwill,  long-lived  assets  and 
deferred tax  assets; shifts  in market  share away  from our  top  customers; 
shifts in market  shares among vehicles  or vehicle segments,  or shifts  away 
from vehicles  on  which we  have  significant content;  risks  of  conducting 
business in foreign markets, including China, India, Brazil, Russia and  other 
non-traditional markets for us; exposure  to, and ability to offset,  volatile 
commodities prices; fluctuations in relative  currency values; our ability  to 
successfully  identify,  complete  and   integrate  acquisitions  or   achieve 
anticipated synergies;  ongoing pricing  pressures, including  our ability  to 
offset price concessions demanded by our customers; warranty and recall costs;
our  ability  to  understand   and  compete  successfully  in   non-automotive 
businesses  in  which  we  pursue  opportunities;  risks  related  to  natural 
disasters and potential  production disruptions; factors  that could cause  an 
increase in our pension  funding obligations; changes in  our mix of  earnings 
between jurisdictions with lower tax rates and those with higher tax rates, as
well as  our  ability  to  fully  benefit  tax  losses;  other  potential  tax 
exposures;  legal   claims  and/or   regulatory   actions  against   us;   the 
unpredictability of,  and fluctuation  in,  the trading  price of  our  Common 
Shares; work  stoppages  and  labour relations  disputes;  changes  in  credit 
ratings assigned to us;  changes in laws  and governmental regulations;  costs 
associated with  compliance with  environmental  laws and  regulations;  risks 
related to the  electric vehicle industry;  and other factors  set out in  our 
Annual Information Form filed  with securities commissions  in Canada and  our 
annual report  on  Form 40-F  filed  with  the United  States  Securities  and 
Exchange Commission,  and subsequent  filings. In  evaluating  forward-looking 
statements,  we  caution  readers   not  to  place   undue  reliance  on   any 
forward-looking  statements  and  readers  should  specifically  consider  the 
various  factors  which  could  cause  actual  events  or  results  to  differ 
materially from those indicated by  such forward-looking statements.    Unless 
otherwise required by applicable securities laws, we do not intend, nor do  we 
undertake any obligation, to update  or revise any forward-looking  statements 
to  reflect  subsequent  information,  events,  results  or  circumstances  or 
otherwise.

 

 

 

SOURCE Magna International Inc.

Contact:

Vince Galifi, Executive Vice-President and Chief Financial Officer at
905-726-7100 or Louis Tonelli, Vice-President, Investor Relations at
905-726-7035.
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