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Magna Announces Fourth Quarter and 2012 Results

               Magna Announces Fourth Quarter and 2012 Results

  PR Newswire

  AURORA, Ontario, March 1, 2013

AURORA, Ontario, March 1, 2013 /PRNewswire/ --

Magna International Inc. (TSX: MG) (NYSE: MGA) today reported financial
results for the fourth quarter and year ended December 31,2012.

                                   THREE MONTHS ENDED               YEAR ENDED
                                         DECEMBER 31,             DECEMBER 31,
                                     2012        2011        2012         2011

    Sales                         $ 8,033     $ 7,251    $ 30,837     $ 28,748

    Adjusted EBIT(1)              $   387     $   321    $  1,658     $  1,367

    Income from operations
    before income taxes           $   341     $   291    $  1,750     $  1,217

    Net income attributable
    to Magna
    International Inc.            $   351     $   312    $  1,433     $  1,018

    Diluted earnings per
    share                         $  1.49     $  1.32    $   6.09     $   4.20

           All results are reported in millions of U.S. dollars, except
                  per share figures, which are in U.S. dollars.

    (1) Adjusted EBIT is the measure of segment profit or loss as
    reported in the Company's attached unaudited interim
    consolidated financial statements.
    Adjusted EBIT represents income from operations before income
    taxes; interest expense (income), net; and other expense
    (income), net

THREE MONTHS ENDED DECEMBER 31, 2012

We posted sales of $8.03 billion for the fourth quarter ended December 31,
2012, an increase of 11% over the fourth quarter of 2011. We achieved this
sales increase in a period when vehicle production increased 12% in North
America and declined 8% in Western Europe, both relative to the fourth quarter
of 2011. In the fourth quarter of 2012, our North American, Europe, and Rest
of World production sales, as well as tooling, engineering and other sales and
complete vehicle assembly sales all increased relative to the comparable
quarter in 2011.

Complete vehicle assembly sales increased 12% to $697 million for the fourth
quarter of 2012 compared to $625million for the fourth quarter of 2011, while
complete vehicle assembly volumes increased 5% to approximately 31,500 units.

For the fourth quarter of 2012, adjusted EBIT increased 21% to $387 million
compared to $321 million for the fourth quarter of 2011.

For the fourth quarter of 2012, income from operations before income taxes was
$341 million, net income attributable to Magna International Inc. was $351
million and diluted earnings per share were $1.49, increases of $50 million,
$39 million and $0.17, respectively, each compared to the fourth quarter of
2011.

Excluding other expense (income), net, and the income tax valuation allowance
releases recorded in the fourth quarters of 2012 and 2011, income from
operations before income taxes, net income attributable to Magna International
Inc. and diluted earnings per share increased $62 million, $37 million and
$0.16, respectively, each compared to the fourth quarter of 2011.

For the fourth quarter ended December 31, 2012, we generated cash from
operations of $514 million before changes in non-cash operating assets and
liabilities, and $559 million in non-cash operating assets and liabilities.
Total investment activities for the fourth quarter of 2012 were $949 million,
including $478million in fixed asset additions, $446 million to purchase
subsidiaries and $25 million in investments and other assets.

YEAR ENDED DECEMBER 31, 2012

We posted sales of $30.84 billion for the year ended December 31, 2012, an
increase of 7% over the year ended December 31, 2011. This higher sales level
reflected increases in our North American, European, and Rest of World
production sales as well as higher tooling, engineering and other sales,
partially offset by lower complete vehicle assembly sales.

For the year ended December 31, 2012, vehicle production increased 18% to 15.5
million units in North America and decreased 7% to 12.7 million units in
Western Europe, each compared to 2011.

Complete vehicle assembly sales decreased 5% to $2.56 billion for the year
ended December 31, 2012 compared to $2.69 billion for the year ended December
31, 2011, while complete vehicle assembly volumes decreased 5% to
approximately 124,000 units.

For the year ended December 31, 2012, adjusted EBIT increased 21% to $1.66
billion compared to $1.37 billion for the year ended December 31, 2011.

For the year ended December 31, 2012, income from operations before income
taxes was $1.75 billion, net income attributable to Magna International Inc.
was $1.43 billion and diluted earnings per share were $6.09, increases of $533
million, $415 million and $1.89, respectively, each compared to 2011.

Excluding other expense (income), net, and the income tax valuation allowance
releases recorded in 2012 and 2011, income from operations before income
taxes, net income attributable to Magna International Inc. and diluted
earnings per share increased $269 million, $165 million and $0.83,
respectively, each compared to 2011.

For the year ended December 31, 2012, we generated cash from operations before
changes in non-cash operating assets and liabilities of $2.13 billion, and $72
million in non-cash operating assets and liabilities. Total investment
activities for the year of 2012 were $1.92 billion, including $1.27 billion in
fixed asset additions, $525 million to purchase subsidiaries and a $122
million increase in investments and other assets.

Don Walker, Magna's Chief Executive Officer, commented: "Overall, we are
satisfied with our operating results for 2012. We continued our strong
performance in North America.In Europe, we saw better operating results and a
return to profitability. In the rest of the world, Asia remains profitable,
despite the significant new facility activity, and we are taking steps to
improve results in South America."

A more detailed discussion of our consolidated financial results for the
fourth quarter and year ended December 31, 2012 is contained in the
Management's Discussion and Analysis of Results of Operations and Financial
Position and the unaudited interim consolidated financial statements and notes
thereto, which are attached to this Press Release.

DIVIDENDS

Yesterday, our Board of Directors declared a quarterly dividend of $0.32 with
respect to our outstanding Common Shares for the quarter ended December 31,
2012. This dividend is payable on March 27, 2013 to shareholders of record on
March 13, 2013.

Vince Galifi, Magna's Chief Financial Officer, stated: "The 16% increase in
our quarterly dividend per share to $0.32, which is a new record for us,
reflects our continued strong performance and the confidence our Board has in
Magna's future."

UPDATED 2013 OUTLOOK


     Light Vehicle Production
              (Units)
                  North America                   15.8 million
                  Western Europe                  11.9 million

    Production Sales
                  North America                   $15.4 billion - $15.8 billion
                  Europe                          $9.4 billion - $9.7 billion
                  Rest of World                   $2.2 billion - $2.5 billion   
                  Total Production Sales          $27.0 billion - $28.0 billion

    Complete Vehicle Assembly                     $2.6 billion - $2.9 billion
    Sales                                       
    Total Sales                                   $32.0 billion - $33.4 billion

    Operating Margin*+                            Mid 5% range

    Tax Rate*                                     Approximately 24.5%
    Capital Spending                              Approximately $1.4 billion

    * Excluding other expense (income), net
    + Excluding $158 million amortization of intangibles related to acquisition of E-Car

In this 2013 outlook, in addition to 2013 light vehicle production, 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
current rates.

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
119,000 employees are focused on delivering superior value to our customers
through innovative processes and World Class Manufacturing. Our product
capabilities include producing 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
http://www.magna.com .

We will hold a conference call for interested analysts and shareholders to
discuss our fourth quarter and year end 2012 results on Friday, March 1, 2013
at 8:00 a.m. EST. The conference call will be chaired by Donald J. Walker,
Chief Executive Officer. The number to use for this call is 1-800-699-3428.
The number for overseas callers is 1-416-641-6715. Please call in at least 10
minutes prior to the call. We will also webcast the conference call at
http://www.magna.com . The slide presentation accompanying the conference call
will be available on our website Friday morning prior to the call. 

FORWARD-LOOKING STATEMENTS

The previous discussion contains statements that constitute "forward-looking
statements" or "forward-looking information" within the meaning of applicable
securities legislation, including, but not limited to, statements relating to
Magna's expected production sales, based on expected light vehicle production
in North America and Western Europe; Magna's expected production sales in the
North America, Europe and Rest of World segments; total sales; complete
vehicle assembly sales; consolidated operating margin; effective income tax
rate; fixed asset expenditures; implementation of improvement plans in our
underperforming operations, including South America; and future purchases of
our Common Shares under the Normal Course Issuer Bid. The forward-looking
information in this document is presented for the purpose of providing
information about management's current expectations and plans and such
information may not be appropriate for other purposes. 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, and other statements that are not
recitations of historical fact. 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 with 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, including,
without limitation: 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 the recession
in Europe, including the potential for a deterioration of sales of our three
largest German-based OEM customers; inability to sustain or grow our business
with OEMs; 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; bankruptcy or insolvency of a major customer or supplier; a prolonged
disruption in the supply of components to us from our suppliers; scheduled
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; risks arising due to the failure of a major financial institution;
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, South America 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; our ability to conduct appropriate due diligence on acquisition
targets; ongoing pricing pressures, including our ability to offset price
concessions demanded by our customers; warranty and recall costs; risks
related to natural disasters and potential production disruptions; factors
that could cause an increase in our pension funding obligations; legal claims
and/or regulatory actions against us; our ability to understand and compete
successfully in non-automotive businesses in which we pursue opportunities;
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; inability to achieve future investment
returns that equal or exceed past returns; 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; 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.

For further information about Magna, please see our website at
http://www.magna.com . Copies of financial data and other publicly filed
documents are available through the internet on the Canadian Securities
Administrators' System for Electronic Document Analysis and Retrieval (SEDAR)
which can be accessed at http://www.sedar.com  and on the United States
Securities and Exchange Commission's Electronic Data Gathering, Analysis and
Retrieval System (EDGAR) which can be accessed at http://www.sec.gov

For further information, please contact Louis Tonelli, Vice-President,
Investor Relations at +1-905-726-7035. 

For teleconferencing questions, please contact Karin Kaminski at
+1-905-726-7103.

(MG. MGA)
 
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