Magna Forecasts 2013 Sales Gain on Growth in New Markets
Stock Chart for Magna International Inc (MG)
Magna International Inc. (MG), North America’s largest auto-parts maker, forecast sales growth of as much as 7.9 percent for 2013 as the manufacturer seeks customers in new markets.
Revenue this year is forecast to be $31.3 billion to $32.7 billion, the Aurora, Ontario-based company said today in a statement. That compares with a sales prediction for 2012 of $30.3 billion to $31.2 billion that Magna made in November. The average analyst estimate for 2013 sales is $31.8 billion, according to data compiled by Bloomberg.
“Our outlook reflects the progress we are making in expanding Magna’s business outside of our traditional markets,” Chief Executive Officer Don Walker said in the statement.
Magna bought German automotive-pump manufacturer Ixetic in November, three months after acquiring full control of a partnership to make electric-vehicle parts. Revenue growth from making components will primarily come from North America, while sales at European operations will decline, Magna said today.
The operating profit margin for 2013 is forecast to be in the “mid-5 percent range” of revenue, Magna said today.
Magna is scheduled to report full-year earnings next month.
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