Press Release - Magna Announces Fourth Quarter and 2018 Results and Raises Quarterly Cash Dividend by 11%
- Magna annonce ses résultats du quatrième trimestre et de 2018, et augmente son dividende trimestriel en espèces de 11 %
- Magna gibt die Ergebnisse des 4. Quartals und Gesamtjahres 2018 bekannt und erhöht die vierteljährliche Bardividende um 11 %
Please click HERE for a PDF version of the release.
Fourth Quarter 2018 Highlights
- Record fourth quarter sales of
$10.1 billion up 5% from the fourth quarter of 2017 - Cash from operations of
$1.6 billion - Returned
$585 million to shareholders through share repurchases and dividends - Raised quarterly cash dividend by 11% to
$0.365 per share
Full Year 2018 Highlights
- Record sales of
$40.8 billion , up 12% from 2017 - Record diluted earnings per share of
$6.61 , an increase of 13% - Record cash from operations of
$3.7 billion - Returned approximately
$2.3 billion to shareholders through share repurchases and dividends
THREE MONTHS ENDED |
YEAR ENDED |
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2018 | 2017 (2) | 2018 | 2017 (2) | |||||||||
Reported Sales |
$ | 10,137 | $ | 9,684 | $ | 40,827 | $ | 36,588 | ||||
Income from operations before income taxes | $ | 607 | $ | 765 | $ | 2,951 | $ | 2,985 | ||||
Net income attributable to |
$ | 456 | $ | 559 | $ | 2,296 | $ | 2,196 | ||||
Diluted earnings per share |
$ | 1.37 | $ | 1.54 | $ | 6.61 | $ | 5.87 | ||||
Non-GAAP Financial Measures(1) Adjusted EBIT |
$ | 730 | $ | 813 | $ | 3,107 | $ | 3,094 | ||||
Adjusted diluted earnings per share | $ | 1.63 | $ | 1.58 | $ | 6.71 | $ | 5.93 | ||||
All results are reported in millions of (1) Adjusted EBIT and Adjusted diluted earnings per share are Non-GAAP financial measures that have no standardized meaning under (2) 2017 amounts included in this Press Release have been adjusted for our adoption of the new revenue standard (Accounting Standards Codification 606) and recast for our new reportable segments. |
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A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/65ad4e4c-350d-413f-a71c-2941e952c4d2
THREE MONTHS ENDED
Our fourth quarter results were records for sales and adjusted diluted earnings per share and were substantially in-line with our previously provided Outlook for 2018. During the quarter, we returned
On a consolidated basis, we posted sales of
Adjusted EBIT of
- lower margins in our Power & Vision segment, mainly associated with increased spending for electrification and autonomy, higher launch costs, a decline in equity income largely due to lower earnings at
Getrag's joint-ventures inChina , and higher warranty expense; - an increase in the proportion of sales generated in our Complete Vehicles segment relative to total sales, which have a significantly lower margin than our consolidated average; and
- lower margins in our Seating segment, mainly associated with pre-operating costs incurred at new facilities.
These factors were partially offset by higher margins in our Body Exteriors & Structures segment, largely related to improved profitability at certain underperforming operations.
Income from operations before income taxes of
Net income attributable to
Diluted earnings per share decreased by 11% to
In the fourth quarter of 2018, we generated cash from operations before changes in operating assets and liabilities of
YEAR ENDED
We posted record sales of
Income from operations before income taxes was
Net income attributable to
Adjusted EBIT increased to
Our adjusted diluted earnings per share increased 13% to
During 2018, we generated cash from operations before changes in operating assets and liabilities of
RETURN OF CAPITAL TO SHAREHOLDERS
During the three months and year ended
Our Board of Directors declared a quarterly dividend of
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/a6dae730-aff9-4f4b-bbb2-2a16f64a7af5
2019 OUTLOOK
Our 2019 outlook remains unchanged from the outlook provided in our
REVIEW OF SELECT FOURTH QUARTER 2018 FINANCIAL INFORMATION
Other Expense, net
We recorded other expense, net of
Income Taxes
On
During 2018 we released a portion of our valuation allowance against our deferred tax assets in
US Tax Reform and the Adjustments to Valuation Allowance together result in a net favourable impact of
Segment Analysis | ||||||||||||||||
Body Exteriors & Structures | ||||||||||||||||
For the three months | ||||||||||||||||
ended |
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2018 | 2017 | Change | ||||||||||||||
Sales | $ | 4,177 | $ | 4,333 | $ | (156) | - 4 | % | ||||||||
Adjusted EBIT | $ | 351 | $ | 354 | $ | (3) | - 1 | % | ||||||||
Adjusted EBIT as a percentage of sales (i) | 8.4% | 8.2% | + 0.2 | % |
(i) Adjusted EBIT as a percentage of sales is calculated as Adjusted EBIT divided by Sales.
Sales for Body Exteriors & Structures decreased 4% or
Adjusted EBIT for Body Exteriors & Structures decreased
Adjusted EBIT as a percentage of sales increased 0.2% to 8.4% for the fourth quarter of 2018 compared to 8.2% for the fourth quarter of 2017.
The increase in Adjusted EBIT, excluding the impact of foreign currency translation, and Adjusted EBIT as a percentage of sales was primarily due to productivity and efficiency improvements at certain underperforming facilities and lower pre-operating costs incurred at new facilities, partially offset by inefficiencies at a plant we are closing and higher launch costs.
Power & Vision | ||||||||||||||||
For the three months | ||||||||||||||||
ended |
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2018 | 2017 | Change | ||||||||||||||
Sales | $ | 2,987 | $ | 2,944 | $ | 43 | + 1 | % | ||||||||
Adjusted EBIT | $ | 253 | $ | 322 | $ | (69) | - 21 | % | ||||||||
Adjusted EBIT as a percentage of sales | 8.5% | 10.9% | - 2.4 | % | ||||||||||||
Sales for Power & Vision increased 1% or
Adjusted EBIT for Power & Vision decreased
Adjusted EBIT as a percentage of sales decreased 2.4% to 8.5% for the fourth quarter of 2018 compared to 10.9% for the fourth quarter of 2017. The decrease was primarily due to higher spending associated with electrification and autonomy, higher launch costs, lower equity income and higher warranty costs partially offset by lower depreciation on assets classified as held for sale which, as of
Seating Systems | ||||||||||||||||
For the three months | ||||||||||||||||
ended |
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2018 | 2017 | Change | ||||||||||||||
Sales | $ | 1,435 | $ | 1,305 | $ | 130 | + 10 | % | ||||||||
Adjusted EBIT | $ | 110 | $ | 106 | $ | 4 | + 4 | % | ||||||||
Adjusted EBIT as a percentage of sales | 7.7% | 8.1% | - 0.4 | % | ||||||||||||
Sales for Seating Systems increased 10% or
Adjusted EBIT for Seating Systems increased
Adjusted EBIT as a percentage of sales decreased 0.4% to 7.7% for the fourth quarter of 2018 compared to 8.1% for the fourth quarter of 2017. The decrease was primarily due to higher pre-operating costs incurred at new facilities partially offset by a favourable pricing resolution, lower launch costs and a Brazilian tax recovery.
Complete Vehicles | ||||||||||||||
For the three months | ||||||||||||||
ended |
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2018 | 2017 | Change | ||||||||||||
Complete Vehicle Assembly Volumes (thousands of units) | 36.6 | 27.2 | 9.4 | + 35 | % | |||||||||
Sales | $ | 1,687 | $ | 1,213 | $ | 474 | + 39 | % | ||||||
Adjusted EBIT | $ | 24 | $ | 28 | $ | (4) | - 14 | % | ||||||
Adjusted EBIT as a percentage of sales | 1.4% | 2.3% | - 0.9 | % | ||||||||||
Sales for Complete Vehicles increased 39% or
Adjusted EBIT for Complete Vehicles decreased
2019 OUTLOOK (3)
Light Vehicle Production (Units) |
|
17.0 million 22.3 million |
||
Segment Sales Body Exteriors & Structures Power & Vision Seating Systems Complete Vehicles |
|
|
||
Total Sales |
|
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EBIT Margin(4) | 7.3% - 7.6% | |||
Equity Income (included in EBIT) | ||||
Interest Expense | Approximately |
|||
Tax Rate | Approximately 24% | |||
Net income attributable to Magna | ||||
Capital Spending | Approximately |
|||
(3) Unchanged from 2019 outlook provided in our (4) 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. |
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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:
- 2019 light vehicle production volumes (as set out above);
- foreign exchange rates for the most common currencies in which we conduct business relative to our
U.S. dollar reporting currency were:1 Canadian dollar equalsU.S. dollars 0.76 1 euro equalsU.S. dollars 1.13
These foreign exchange rates are unchanged from our previous 2019 outlook dated
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
CONSOLIDATED STATEMENTS OF INCOME
[Unaudited]
[
Three months ended | Year ended | |||||||||||||||
2018 | 2017 (2) | 2018 | 2017 (2) | |||||||||||||
Sales | $ | 10,137 | $ | 9,684 | $ | 40,827 | $ | 36,588 | ||||||||
Costs and expenses | ||||||||||||||||
Cost of goods sold | 8,714 | 8,205 | 35,055 | 30,895 | ||||||||||||
Depreciation and amortization | 318 | 316 | 1,278 | 1,184 | ||||||||||||
Selling, general and administrative | 431 | 437 | 1,664 | 1,668 | ||||||||||||
Interest expense, net | 26 | 20 | 93 | 70 | ||||||||||||
Equity income | (56) | (87) | (277) | (253) | ||||||||||||
Other expense, net | 97 | 28 | 63 | 39 | ||||||||||||
Income from operations before income taxes | 607 | 765 | 2,951 | 2,985 | ||||||||||||
Income taxes | 140 | 190 | 619 | 741 | ||||||||||||
Net income | 467 | 575 | 2,332 | 2,244 | ||||||||||||
Income attributable to non-controlling interests | (11) | (16) | (36) | (48) | ||||||||||||
Net income attributable to |
$ | 456 | $ | 559 | $ | 2,296 | $ | 2,196 | ||||||||
Earnings per Common Share: | ||||||||||||||||
Basic | $ | 1.37 | $ | 1.55 | $ | 6.65 | $ | 5.91 | ||||||||
Diluted | $ | 1.37 | $ | 1.54 | $ | 6.61 | $ | 5.87 | ||||||||
Cash dividends paid per Common Share | $ | 0.33 | $ | 0.275 | $ | 1.32 | $ | 1.10 | ||||||||
Weighted average number of Common Shares outstanding during the period [in millions]: | ||||||||||||||||
Basic | 331.9 | 359.6 | 345.4 | 371.8 | ||||||||||||
Diluted | 333.2 | 362.3 | 347.5 | 373.9 | ||||||||||||
(2) 2017 amounts included in this Press Release have been adjusted for our adoption of the new revenue standard (Accounting Standards Codification 606) and recast for our new reportable segments. | ||||||||||||||||
CONSOLIDATED BALANCE SHEETS
[Unaudited]
[
As at | As at | |||||||
2018 | 2017 (2) | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 684 | $ | 726 | ||||
Accounts receivable | 6,548 | 6,695 | ||||||
Inventories | 3,403 | 3,542 | ||||||
Prepaid expenses and other | 193 | 237 | ||||||
Income taxes receivable | 57 | — | ||||||
Assets held for sale | 949 | — | ||||||
11,834 | 11,200 | |||||||
Investments | 2,189 | 2,079 | ||||||
Fixed assets, net | 8,095 | 8,176 | ||||||
Intangible assets, net | 560 | 650 | ||||||
1,979 | 2,099 | |||||||
Deferred tax assets |
300 | 238 | ||||||
Other assets | 988 | 1,026 | ||||||
$ | 25,945 | $ | 25,468 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Short-term borrowings | $ | 1,098 | $ | 259 | ||||
Accounts payable | 6,094 | 6,283 | ||||||
Accrued salaries and wages | 769 | 836 | ||||||
Other accrued liabilities | 1,734 | 1,739 | ||||||
Income taxes payable | — | 18 | ||||||
Long‑term debt due within one year | 201 | 108 | ||||||
Liabilities held for sale | 408 | — | ||||||
10,304 | 9,243 | |||||||
Long‑term debt | 3,084 | 3,195 | ||||||
Long-term employee benefit liabilities | 597 | 670 | ||||||
Other long‑term liabilities | 400 | 326 | ||||||
Deferred tax liabilities | 401 | 322 | ||||||
14,786 | 13,756 | |||||||
Shareholders' equity | ||||||||
Capital stock | ||||||||
Common Shares | ||||||||
[issued:327,339,095; |
3,380 | 3,617 | ||||||
Contributed surplus | 120 | 119 | ||||||
Retained earnings | 8,376 | 8,074 | ||||||
Accumulated other comprehensive loss | (1,175) | (600) | ||||||
10,701 | 11,210 | |||||||
Non-controlling interests | 458 | 502 | ||||||
11,159 | 11,712 | |||||||
$ | 25,945 | $ | 25,468 | |||||
(2) 2017 amounts included in this Press Release have been adjusted for our adoption of the new revenue standard (Accounting Standards Codification 606) and recast for our new reportable segments. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
[Unaudited]
[
Three months ended | Year ended | |||||||||||||||
2018 | 2017 (2) | 2018 | 2017 (2) | |||||||||||||
Cash provided from (used for): | ||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||
Net income | $ | 467 | $ | 575 | $ | 2,332 | $ | 2,244 | ||||||||
Items not involving current cash flows | 534 | 316 | 1,539 | 1,315 | ||||||||||||
1,001 | 891 | 3,871 | 3,559 | |||||||||||||
Changes in operating assets and liabilities | 597 | 558 | (153) | (213) | ||||||||||||
Cash provided from operating activities | 1,598 | 1,449 | 3,718 | 3,346 | ||||||||||||
INVESTMENT ACTIVITIES | ||||||||||||||||
Fixed asset additions | (647) | (751) | (1,650) | (1,875) | ||||||||||||
Increase in |
— | — | (220) | — | ||||||||||||
Increase in investments, other assets and intangible assets | (150) | (267) | (481) | (651) | ||||||||||||
Proceeds from disposition | 70 | 105 | 223 | 332 | ||||||||||||
Proceeds on disposal of facilities | — | 49 | — | 49 | ||||||||||||
Acquisitions | (152) | — | (148) | — | ||||||||||||
Cash used for investing activities | (879) | (864) | (2,276) | (2,145) | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||
Issues of debt | 23 | 8 | 172 | 752 | ||||||||||||
(Decrease) increase in short-term borrowings | (177) | (196) | 866 | (530) | ||||||||||||
Repayments of debt | (130) | (9) | (171) | (110) | ||||||||||||
Common Shares issued on exercise of stock options | 3 | 24 | 50 | 44 | ||||||||||||
Shares repurchased for tax withholdings on vesting of equity awards | (10) | (11) | (16) | (11) | ||||||||||||
Repurchase of Common Shares | (479) | (366) | (1,831) | (1,271) | ||||||||||||
Contributions to subsidiaries by non-controlling interests | — | — | 4 | 10 | ||||||||||||
Dividends paid to non-controlling interests | (39) | (5) | (69) | (38) | ||||||||||||
Dividends paid | (106) | (95) | (448) | (400) | ||||||||||||
Cash used for financing activities | (915) | (650) | (1,443) | (1,554) | ||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalents | (5) | 9 | (36) | 24 | ||||||||||||
Net decrease in cash, cash equivalents and Restricted cash equivalents during the period | (201) | (56) | (37) | (329) | ||||||||||||
Cash, cash equivalents and restricted cash equivalents, beginning of period | 1,003 | 895 | 839 | 1,168 | ||||||||||||
Cash, cash equivalents and restricted cash equivalents, end of period | $ | 802 | $ | 839 | $ | 802 | $ | 839 | ||||||||
(2) 2017 amounts included in this Press Release have been adjusted for our adoption of the new revenue standard (Accounting Standards Codification 606) and recast for our new reportable segments. | ||||||||||||||||
SUPPLEMENTAL DATA | |||||||||||||||
[Unaudited] | |||||||||||||||
[All amounts in |
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Other Expense, net | |||||||||||||||
During the three months and year ended |
|||||||||||||||
Three months ended | Year ended | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Impairment of investment (1) | $ | 60 | $ | 17 | $ | 60 | $ | 17 | |||||||
Restructuring (2) | 23 | 18 | 45 | 29 | |||||||||||
Impairment of long-lived assets (3) | 14 | 64 | 14 | 64 | |||||||||||
Unrealized gain on investment revaluation (4) | — | — | (56) | — | |||||||||||
Gain on formation of a new venture (5) | — | (45) | — | (45) | |||||||||||
Gain on sale of investment (6) | — | (26) | — | (26) | |||||||||||
Other expense, net | $ | 97 | $ | 28 | $ | 63 | $ | 39 | |||||||
(1) During the fourth quarter of 2018, we recorded an impairment charge of
In the fourth quarter of 2017, we recorded an impairment charge of
(2) For the year ended
For the year ended
(3) During the fourth quarter of 2018, we recorded fixed asset impairment charges of
In the fourth quarter of 2017, we recorded fixed asset impairment charges of
(4) During 2018, we recorded an unrealized gain of
(5) We formed a new venture in
(6) We sold an investment during the fourth quarter of 2017 for proceeds of
SUPPLEMENTAL DATA | |||||||||
[Unaudited] | |||||||||
[All amounts in |
Segmented Information
Magna is a global automotive supplier which has complete vehicle engineering and contract manufacturing expertise, as well as product capabilities which include body, chassis, exterior, seating, powertrain, active driver assistance, electronics, vision, mechatronics and roof systems. Magna also has electronic and software capabilities across many of these areas.
Previously, the Company organized its businesses into four reportable operating segments:
The Company is now organized under four operating segments which have been determined on the basis of technological opportunities, product similarities, and market and operating factors. These operating segments are also the Company's reportable segments:
- Body Exteriors & Structures includes our body and chassis business, exteriors, roof systems, sealing systems and fuel systems operations;
- Power & Vision includes our powertrain, electronics, mirrors, lighting and mechatronics operations;
- Seating Systems is comprised of our complete seat assembly facilities and our foam, trim, structures and mechanisms operations; and
- Complete Vehicles is comprised of our contract manufacturing operations as well as our complete vehicle engineering centers.
The results of each segment are regularly reviewed by the Company's chief operating decision maker to assess the performance of the segment and make decisions regarding the allocation of resources. The Company's chief operating decision maker uses Adjusted Earnings before Interest and Income Taxes ["Adjusted EBIT"] as the measure of segment profit or loss, since management believes Adjusted EBIT is the most appropriate measure of operational profitability or loss for its reporting segments. Adjusted EBIT is calculated by taking net income from operations and adding back income taxes, interest expense, net, and other expense, net.
SUPPLEMENTAL DATA | ||||||||||||||||||||||
[Unaudited] | ||||||||||||||||||||||
All amounts in |
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Segmented Information (Continued) (2) | ||||||||||||||||||||||
The following tables show segment information for the Company's reporting segments and a reconciliation of Adjusted EBIT to the Company's consolidated income before income taxes: | ||||||||||||||||||||||
Three months ended |
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Depreciation | Equity | Fixed | ||||||||||||||||||||
Total | External | Adjusted | and | (income) | asset | |||||||||||||||||
sales | sales | EBIT [ii] | amortization | loss | additions | |||||||||||||||||
Body Exteriors & Structures | $ | 4,177 | $ | 4,095 | $ | 351 | $ | 176 | $ | (3) | $ | 280 | ||||||||||
Power & Vision | 2,987 | 2,931 | 253 | 102 | (58) | 293 | ||||||||||||||||
Seating Systems | 1,435 | 1,433 | 110 | 15 | 4 | 35 | ||||||||||||||||
Complete Vehicles | 1,687 | 1,677 | 24 | 19 | — | 37 | ||||||||||||||||
Corporate & Other [i] | (149) | 1 | (8) | 6 | 1 | 2 | ||||||||||||||||
Total Reportable Segments | $ | 10,137 | $ | 10,137 | $ | 730 | $ | 318 | $ | (56) | $ | 647 | ||||||||||
Three months ended |
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Depreciation | Equity | Fixed | ||||||||||||||||||||
Total | External | Adjusted | and | (income) | asset | |||||||||||||||||
sales | sales | EBIT [ii] | amortization | loss | additions | |||||||||||||||||
Body Exteriors & Structures | $ | 4,333 | $ | 4,307 | $ | 354 | $ | 165 | $ | (3) | $ | 366 | ||||||||||
Power & Vision | 2,944 | 2,871 | 322 | 116 | (86) | 222 | ||||||||||||||||
Seating Systems | 1,305 | 1,304 | 106 | 15 | 1 | 35 | ||||||||||||||||
Complete Vehicles | 1,213 | 1,200 | 28 | 13 | — | 119 | ||||||||||||||||
Corporate & Other [i] | (111) | 2 | 3 | 7 | 1 | 9 | ||||||||||||||||
Total Reportable Segments | $ | 9,684 | $ | 9,684 | $ | 813 | $ | 316 | $ | (87) | $ | 751 | ||||||||||
Year ended |
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Depreciation | Fixed | |||||||||||||||||||||
Total | External | Adjusted | and | Equity | asset | |||||||||||||||||
sales | sales | EBIT [ii] | amortization | income | additions | |||||||||||||||||
Body Exteriors & Structures | $ | 17,527 | $ | 17,220 | $ | 1,398 | $ | 697 | $ | (12) | $ | 730 | ||||||||||
Power & Vision | 12,321 | 12,086 | 1,168 | 434 | (261) | 655 | ||||||||||||||||
Seating Systems | 5,548 | 5,546 | 425 | 57 | (3) | 78 | ||||||||||||||||
Complete Vehicles | 6,018 | 5,968 | 68 | 65 | — | 170 | ||||||||||||||||
Corporate & Other [i] | (587) | 7 | 48 | 25 | (1) | 17 | ||||||||||||||||
Total Reportable Segments | $ | 40,827 | $ | 40,827 | $ | 3,107 | $ | 1,278 | $ | (277) | $ | 1,650 | ||||||||||
Year ended |
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Depreciation | Equity | Fixed | ||||||||||||||||||||
Total | External | Adjusted | and | (income) | asset | |||||||||||||||||
sales | sales | EBIT [ii] | amortization | loss | additions | |||||||||||||||||
Body Exteriors & Structures | $ | 16,613 | $ | 16,501 | $ | 1,346 | $ | 633 | $ | (10) | $ | 930 | ||||||||||
Power & Vision | 11,629 | 11,344 | 1,183 | 415 | (245) | 568 | ||||||||||||||||
Seating Systems | 5,224 | 5,222 | 434 | 61 | 2 | 76 | ||||||||||||||||
Complete Vehicles | 3,547 | 3,513 | 66 | 46 | — | 236 | ||||||||||||||||
Corporate & Other [i] | (425) | 8 | 65 | 29 | — | 65 | ||||||||||||||||
Total Reportable Segments | $ | 36,588 | $ | 36,588 | $ | 3,094 | $ | 1,184 | $ | (253) | $ | 1,875 | ||||||||||
[i] Included in Corporate and Other Adjusted EBIT are intercompany fees charged to the automotive segments.
[ii] For a definition and reconciliation of Adjusted EBIT, refer to our Non-GAAP financial measures reconciliation included in the "Supplemental Data" section of this Press Release.
(2) 2017 amounts included in this Press Release have been adjusted for our adoption of the new revenue standard (Accounting Standards Codification 606) and recast for our new reportable segments.
SUPPLEMENTAL DATA | ||||||||
[Unaudited] | ||||||||
[All amounts in |
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The following table shows |
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2018 | 2017 (2) | |||||||
Body Exteriors & Structures | $ | 459 | $ | 463 | ||||
Power & Vision [i] | 1,260 | 1,365 | ||||||
Seating Systems | 147 | 153 | ||||||
Complete Vehicles | 113 | 118 | ||||||
Total Reportable Segments | $ | 1,979 | $ | 2,099 | ||||
[i] |
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The following table shows Net Assets for the Company's reporting segments: | ||||||||
|
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2018 | 2017 (2) | |||||||
Body Exteriors & Structures | $ | 6,946 | $ | 7,243 | ||||
Power & Vision [i] | 6,675 | 6,475 | ||||||
Seating Systems | 804 | 804 | ||||||
Complete Vehicles | 605 | 394 | ||||||
Corporate & Other | 798 | 658 | ||||||
Total Reportable Segments | $ | 15,828 | $ | 15,574 | ||||
[i] Includes |
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The following table reconciles Total Assets to Net Assets: | ||||||||
2018 | 2017 (2) | |||||||
Total Assets | $ | 25,945 | $ | 25,468 | ||||
Deduct assets not included in segment net assets: | ||||||||
Cash and cash equivalents | (684) | (726) | ||||||
Deferred tax assets | (300) | (238) | ||||||
Long-term receivables from joint venture partners | (71) | (72) | ||||||
Income taxes receivable | (57) | — | ||||||
Deduct liabilities included in segment net assets: | ||||||||
Accounts payable | (6,094) | (6,283) | ||||||
Accrued salaries and wages | (769) | (836) | ||||||
Other accrued liabilities | (1,734) | (1,739) | ||||||
Liabilities held for sale | (408) | — | ||||||
Segment Net Assets | $ | 15,828 | $ | 15,574 | ||||
(2) 2017 amounts included in this Press Release have been adjusted for our adoption of the new revenue standard (Accounting Standards Codification 606) and recast for our new reportable segments. |
SUPPLEMENTAL DATA | |||||||||||||||
[Unaudited] | |||||||||||||||
[All amounts in |
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Non-GAAP Financial Measures | |||||||||||||||
In addition to the financial results reported in accordance with |
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The following table reconciles Net income to Adjusted EBIT: | |||||||||||||||
Three months ended | Year ended | ||||||||||||||
December 31, | |||||||||||||||
2018 | 2017 (2) | 2018 | 2017 (2) | ||||||||||||
Net income | $ | 467 | $ | 575 | $ | 2,332 | $ | 2,244 | |||||||
Add: | |||||||||||||||
Interest expense, net | 26 | 20 | 93 | 70 | |||||||||||
Other expense, net | 97 | 28 | 63 | 39 | |||||||||||
Income taxes | 140 | 190 | 619 | 741 | |||||||||||
Adjusted EBIT | $ | 730 | $ | 813 | $ | 3,107 | $ | 3,094 | |||||||
The following table reconciles Net income attributable to |
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Three months ended | Year ended | ||||||||||||||
2018 | 2017 (2) | 2018 | 2017 (2) | ||||||||||||
Net income attributable to |
$ | 456 | $ | 559 | $ | 2,296 | $ | 2,196 | |||||||
Add: | |||||||||||||||
Other expense, net | 97 | 28 | 63 | 39 | |||||||||||
Tax effect on Other expense, net | (5) | 7 | (2) | 7 | |||||||||||
Adjustments to Valuation Allowance | (17) | — | (17) | — | |||||||||||
US Tax Reform | 11 | (23) | 11 | (23) | |||||||||||
Reassessment of deferred tax balances | — | — | (21) | — | |||||||||||
Adjusted net income attributable to |
$ | 542 | $ | 571 | $ | 2,330 | $ | 2,219 | |||||||
Diluted weighted average number of Common Shares outstanding during the period (millions): | 333.2 | 362.3 | 347.5 | 373.9 | |||||||||||
Adjusted diluted earnings per share | $ | 1.63 | $ | 1.58 | $ | 6.71 | $ | 5.93 | |||||||
(2) 2017 amounts included in this Press Release have been adjusted for our adoption of the new revenue standard (Accounting Standards Codification 606) and recast for our new reportable segments. | |||||||||||||||
This press release together with our Management's Discussion and Analysis of Results of Operations and Financial Position and our Interim Financial Statements are available in the Investor Relations section of our website at www.magna.com/investors and filed electronically through the System for Electronic Document Analysis and Retrieval (SEDAR) which can be accessed at www.sedar.com as well as on the
We will hold a conference call for interested analysts and shareholders to discuss our fourth quarter and year ended
TAGS
Quarterly earnings, record quarter, financial results, sales growth
INVESTOR CONTACT
louis.tonelli@magna.com │ 905.726.7035
MEDIA CONTACT
tracy.fuerst@magna.com │ 248.631.5396
OUR BUSINESS (5)
We have more than 174,000 entrepreneurial-minded employees dedicated to delivering mobility solutions. We are a mobility technology company and one of the world's largest automotive suppliers with 348 manufacturing operations and 91 product development, engineering and sales centres in 28 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
(5) Manufacturing operations, product development, engineering and sales centres and employee figures generally include equity-accounted operations.
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, 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
Customer and Supplier Related Risks
Manufacturing Operational Risks
IT Security Risk
Pricing Risks
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Warranty / Recall Risks
Acquisition Risks
Other Business Risks
Legal, Regulatory and Other 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