Magna to Hold 2014 Investments Steady Amid Europe RevampTom Lavell
Magna International Inc. plans to spend about $1.4 billion on plants and equipment this year, matching the budget for 2013, as the Canadian auto-parts maker works to improve profitability in Europe.
Revenue in 2014 will amount to $33.8 billion to $35.5 billion, the Aurora, Ontario-based manufacturer said today in a statement. That’s less than the $36.1 billion average of 15 analyst estimates compiled by Bloomberg. Industrywide production will total 16.7 million light vehicles in North America and 19.1 million in Europe, it said.
“Our outlook reflects our commitment to improving operating results in Europe, including through ongoing restructuring, implementing operational improvements and exercising discipline in quoting new business,” Chief Executive Officer Don Walker said in the statement. Magna also predicts “continued progress in expanding our business in high-growth regions, particularly in Asia.”
Total production sales, which are targeted at $28.6 billion to $29.9 billion this year, will probably increase by $3.6 billion by 2016, with North America accounting for 45 percent of the growth and Europe for 25 percent, Magna said.