Magna Announces First Quarter Results

                    Magna Announces First Quarter Results

  PR Newswire

  AURORA, Ontario, May 10, 2013

AURORA, Ontario, May 10, 2013 /PRNewswire/ --

Magna International Inc. (TSX: MG; NYSE: MGA) today reported financial results
for the first quarter ended March 31,2013.

                                                    THREE MONTHS ENDED
                                             March 31, 2013     March 31, 2012

    Sales                                       $ 8,361            $ 7,666

    Adjusted EBIT(1)                              $ 467              $ 444

    Income from operations before income
    taxes                                         $ 457              $ 439

    Net income attributable to Magna
    International Inc.                            $ 369              $ 343

    Diluted earnings per share                   $ 1.57             $ 1.46

    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

        Adjusted EBIT represents income from operations before income taxes;
        interest expense, net; and other expense, net.


We posted sales of $8.36 billion for the first quarter ended March 31, 2013,
an increase of 9% over the first quarter of 2012. We achieved this sales
increase in a period when vehicle production increased 1% in North America and
decreased 9% in Europe, each relative to the first quarter of 2012. Our North
American, European and Rest of World production sales, as well as tooling,
engineering and other sales all increased in the first quarter of 2013
relative to the comparable quarter in 2012. 

Complete vehicle assembly sales increased 33% to $798 million for the first
quarter of 2013 compared to $599million for the first quarter of 2012, while
complete vehicle assembly volumes increased 25% to approximately 37,000 units.

During the first quarter of 2013, income from operations before income taxes
was $457 million, net income attributable to Magna International Inc. was $369
million and diluted earnings per share were $1.57, increases of $18 million,
$26 million and $0.11, respectively, each compared to the first quarter of

During the first quarter ended March 31, 2013, we generated cash from
operations of $607 million before changes in non-cash operating assets and
liabilities, and invested $456 million in non-cash operating assets and
liabilities. Total investment activities for the first quarter of 2013 were
$242 million, including $194million in fixed asset additions and $48 million
in investments and other assets.

A more detailed discussion of our consolidated financial results for the first
quarter ended March 31, 2013 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.


Yesterday, our Board of Directors declared a quarterly dividend of $0.32 with
respect to our outstanding Common Shares for the quarter ended March 31, 2013.
This dividend is payable on June 17, 2013 to shareholders of record on May 31,


    Light Vehicle Production

    North America                                     15.9 million

    Europe(1)                                         18.4 million

    Production Sales                         $15.7 - $16.1 billion

    North America                              $9.3 - $9.6 billion

    Rest of World                              $2.2 - $2.5 billion

    Total Production Sales                   $27.2 - $28.2 billion

    Complete Vehicle Assembly                  $2.8 - $3.1 billion


    Total Sales                              $32.6 - $34.0 billion

    Operating Margin(2)(3)                    Mid to high 5% range

    Tax Rate(2)                                  Approximately 24%

    Capital Spending                    Approximately $1.4 billion

    (1) Beginning in the first quarter of 2013, we disclose total European
    light vehicle production rather than Western European light vehicle

    (2) Excluding other expense, net

    (3) 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.


We are a leading global automotive supplier with 315 manufacturing operations
and 87 product development, engineering and sales centres in 29 countries. Our
121,000 employees are focused on delivering superior value to our customers
through innovative processes and World Class Manufacturing. Our product
capabilities include producing body, chassis, interior, exterior, seating,
powertrain, electronic, vision, closure 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 .


We will hold a conference call for interested analysts and shareholders to
discuss our first quarter results on Friday, May 10, 2013 at 2:00 p.m. EDT.
The conference call will be chaired by Don Walker, Chief Executive Officer.
The number to use for this call is 1-800-728-2056. The number for overseas
callers is 1-416-641-6705. Please call in at least 10 minutes prior to the
call. We will also webcast the conference call at . The
slide presentation accompanying the conference call will be available on our
website Friday afternoon prior to the call.


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 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, and/or restructuring actions; 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 . 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   and on the United States
Securities and Exchange Commission's Electronic Data Gathering, Analysis and
Retrieval System (EDGAR) which can be accessed at

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

For teleconferencing questions, please contact Karin Kaminski at
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