Press Release - Magna Announces Outlook
- Magna annonce ses perspective
- Magna gibt Finanzprognose bekannt
Please click HERE for a PDF version of the release.
- Sales growth and increased EBIT Margin1 over outlook period
- Higher free cash flow2 in 2019-2021 period, compared to 2018-2020
Our outlook to 2021 anticipates continued growth in total sales and improvement in our EBIT Margin compared to 2018 despite our expectation of relatively level light vehicle production across our major end markets of
For 2019, our sales are expected to be negatively impacted by the announced disposition of our Fluid Pressure & Controls business, net of acquisitions, and by foreign currency translation, reflecting the stronger
OUTLOOK
2019 | 2021 | ||
Light Vehicle Production (Units) | |||
17.0 million 22.3 million | 17.0 million 22.9 million | ||
Segment Sales | |||
Body Exteriors & Structures Power & Vision Seating Systems Complete Vehicles | |||
Total Sales | |||
EBIT Margin3 | 7.3% - 7.6% | 8.1% - 8.5% | |
Equity income (included in EBIT) | |||
Interest Expense | Approximately | ||
Tax Rate | Approximately 24% | ||
Net income attributable to Magna | |||
Capital Spending | Approximately | ||
In this outlook we have assumed no material unannounced acquisitions or divestitures or other significant transactions. The outlook reflects the divestiture of our Fluid Pressure & Controls business, which is expected to occur at the end of the first quarter of 2019. However, the outlook above does not include any estimated gain or loss on the sale. In addition, we have assumed that foreign exchange rates for the most common currencies in which we conduct business relative to our
Certain of the forward-looking financial measures above are provided on a Non-GAAP basis. We do not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with
We will be making a presentation at the
TAGS
2019 outlook, sales growth, free cash flow
INVESTOR CONTACT
louis.tonelli@magna.com, 905.726.7035
MEDIA CONTACT
tracy.fuerst@magna.com, 248.631.5396
WEBCAST CONTACT
nancy.hansford@magna.com, 905.726.7108
OUR BUSINESS4
We have more than 173,000 entrepreneurial-minded employees dedicated to delivering mobility solutions. We are a mobility technology company and one of the world's largest automotive suppliers with 340 manufacturing operations and 89 product development, engineering and sales centres in 27 countries. Our competitive capabilities include body exteriors and structures, power and vision technologies, seating systems and complete vehicle solutions. Our common shares trade on the
FORWARD-LOOKING STATEMENTS
We disclose "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") to provide information about management's current expectations and plans. Such forward-looking statements 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", "aim", "forecast", "outlook", "project", "estimate", "target" and similar expressions suggesting future outcomes or events to identify forward-looking statements.
Forward-looking statements in this press release include, but are not limited to, 2019-2021 outlook period statements related to:
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Our 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.
While we believe we have a reasonable basis for making such forward-looking statements, they are not a guarantee of future performance or outcomes. Whether actual results and developments conform to 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:
Risks Related to the Automotive Industry
| IT Security Risk
| Other Business Risks
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In evaluating forward-looking statements or forward-looking information, we caution readers not to place undue reliance on any forward-looking statement, 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, including the risks, assumptions and uncertainties above which are discussed in greater detail in this document under the section titled "Industry Trends and Risks" and set out in our Annual Information Form filed with securities commissions in
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1 Earnings Before Interest and Taxes ("EBIT") is defined as Net Income attributable to Magna before income attributable to non-controlling interests, income taxes, and interest expense, net. EBIT Margin is the ratio of EBIT to Total Sales.
2 Free cash flow represents Cash from Operating Activities plus proceeds from normal course dispositions of fixed and other assets minus capital spending minus investments in other assets.
3 Earnings Before Interest and Taxes ("EBIT") is defined as Net Income attributable to Magna before income attributable to non-controlling interests, income taxes, and interest expense, net. EBIT Margin is the ratio of EBIT to Total Sales.
4 Manufacturing operations, product development, engineering and sales centres and employee figures include certain equity-accounted operations.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/51d66f8c-41fe-400f-a1d0-ceb7e00d8970
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/a7262f7f-02dd-4dac-9ece-c7107a0842f4