AURORA, ON, Jan. 15, 2014 /PRNewswire/ - Magna International Inc. (TSX: MG) (NYSE: MGA) today announced its financial outlook for 2014. All amounts are in U.S.
dollars.
Don Walker, Magna's Chief Executive Officer commented: "Our outlook
indicates our continued progress in expanding our business in high
growth regions, particularly in Asia. In addition, 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. This,
together with ongoing strong performance in North America, is expected
to result in continued improvement in our consolidated operating margin
in the coming years."
2014 OUTLOOK
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Light Vehicle Production (Units)
North America
Europe
Production Sales
North America
Europe
Rest of World
Total Production Sales
Complete Vehicle Assembly Sales
Total Sales
Operating Margin*
Tax Rate*
Capital Spending
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16.7 million
19.1 million
$16.8 billion - $17.4 billion
$9.5 billion - $9.9 billion
$2.3 billion - $2.6 billion
$28.6 billion - $29.9 billion
$2.6 billion - $2.9 billion
$33.8 billion - $35.5 billion
Mid 6% range
Approximately 24.5%
Approximately $1.4 billion
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* Excluding other expense (income), net
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In addition to our 2014 sales and light vehicle production outlook
above, we expect 2016 total production sales to be approximately $3.6
billion higher than 2014, based on assumed full year 2016 light vehicle
production volumes of approximately 17.7 million units in North America
and approximately 20.9 million units in Europe. We expect the increase
in total production sales to be split approximately as follows by
segment: 45% in North America, 25% in Europe and 30% in Rest of World.
In this outlook 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 year end 2013
rates.
ABOUT MAGNA
We are the most diversified global automotive supplier. We design,
develop and manufacture technologically advanced automotive systems,
assemblies, modules and components, and engineer and assemble complete
vehicles, primarily for sale to original equipment manufacturers
("OEMs") of cars and light trucks. Our capabilities include the design,
engineering, testing and manufacture of automotive interior systems;
seating systems; closure systems; body and chassis systems; vision
systems; electronic systems; exterior systems; powertrain systems; roof
systems; hybrid and electric vehicles/systems; as well as complete
vehicle engineering and assembly.
We have approximately 125,000 employees in 316 manufacturing operations
and 84 product development, engineering and sales centres in 29
countries.
We will be making a presentation at the Deutsche Bank Global Auto
Industry Conference on Wednesday, January 15, 2014 at 12:05 p.m. EST
during which we will review the details of our Outlook. The
presentation will be webcast and available on our website at www.magna.com. The slides accompanying the presentation will be available on our
website Wednesday morning by 7 a.m. EST.
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FORWARD-LOOKING STATEMENTS
This press release 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: forecasts of light vehicle production
in North America and Western Europe; expected consolidated sales, based
on such light vehicle production volumes; production sales, including
expected split by segment, in its North America, Europe and Rest of
World segments for 2014 and subsequent years to 2016; complete vehicle
assembly sales; consolidated operating margin, including improvement in
future years; effective income tax rate; fixed asset expenditures;
implementation of action plans and operating results improvement in
Europe, including through restructuring actions, operational
improvements and quoting discipline; expansion of our business in high
growth regions, including Asia. The forward-looking statements or
forward-looking information in this MD&A 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 or forward-looking information 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 or forward-looking information. Any such
forward-looking statements or forward-looking information 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; continuing economic uncertainty in various geographic regions,
including Western Europe; 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;
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, Russia, India, Argentina and Brazil
and other non-traditional markets for us; 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; impairment charges related to
goodwill, long-lived assets and deferred tax assets; 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;
risk of production disruptions due to natural disasters; pension
liabilities; legal claims and/or regulatory actions against us,
including the ongoing antitrust investigation being conducted by the
German Federal Cartel Office; 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; risks arising due to the failure of a major
financial institution; liquidity risks; bankruptcy or insolvency of a
major customer or supplier; 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 or forward-looking information,
we caution readers not to place undue reliance on any forward-looking
statements or forward-looking information, 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 or forward-looking information. 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 or forward-looking information to reflect subsequent
information, events, results or circumstances or otherwise.
For further information about Magna, please see our website at 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 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 www.sec.gov
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SOURCE Magna International Inc.
Vince Galifi, Executive Vice-President and Chief Financial Officer at 905-726-7100 or Louis Tonelli, Vice-President, Investor Relations at 905-726-7035.