Magna Rises as Profit Beats Analysts' View
The shares rose 0.4 percent to C$44.71 in Toronto at 4:39 p.m. after advancing as much as 5.3 percent earlier, the biggest intraday jump since July 4. The stock has risen 32 percent this year.
Profit surged almost fourfold to $390 million from $102 million a year earlier, in part due to gains from the acquisition of the controlling stake in its electric car-parts business, the Aurora, Ontario-based company said in a statement. Earnings per share excluding the acquisition were $1.13, topping the average estimate of $1.02 in a Bloomberg survey of 16 analysts. Sales rose 6 percent to $7.4 billion.
Honorary Chairman Frank Stronach, 80, who founded the company as a one-man tool-and-die shop in 1957, said he was leaving the board because of his involvement in Austrian politics since ceding control of Magna two years ago.
“I do not want my political views to be confused with my role on Magna’s board,” he said in the statement.
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