Press Release - Magna Announces Outlook
- Sales growth and increased EBIT Margin1 anticipated over outlook period
- Forecast free cash flow2 of approximately
$5.5 billion in 2020-2022 period - Higher EBIT Margin expected in 2020
Please click HERE for the PDF version of the release. (French)
Please click HERE for the PDF version of the release. (German)
AURORA, Ontario
Our outlook to 2022 anticipates continued growth in total sales and improvement in our EBIT Margin, both as compared to 2019 despite our expectation of relatively stable light vehicle production levels in
For 2020, as compared to 2019, our sales are expected to be negatively impacted by foreign currency translation, reflecting the stronger
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/08f0f417-2529-4bb4-96af-468bdb8d5559
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 and investments in other assets.
OUTLOOK
| 2020 | 2022 | |
Light Vehicle Production (Units) | 16.3 million 20.8 million | 16.3 million 21.6 million | |
Segment Sales Body Exteriors & Structures Power & Vision Seating Systems Complete Vehicles | | | |
Total Sales | |||
EBIT Margin3 | 6.7% - 7.0% | 7.6% - 8.0% | |
Equity Income (included in EBIT) | |||
Interest Expense | Approximately | ||
Tax Rate | Approximately 24.5% | ||
Net Income Attributable to Magna | |||
Capital Spending | Approximately | ||
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.
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
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1a9de362-9ba4-4895-a70c-22bdc0330d20
OUR LEADERSHIP
Our Board of Directors is pleased to appoint
The Board is also pleased to announce that
OTHER MATTERS
After almost two years of collaboration, Magna and Lyft have decided to evolve how we work together. Moving forward, we are concluding our partnership to co-develop self-driving technology. We expect to continue to collaborate in several areas related to autonomous developments, including aspects of hardware development and potential joint opportunities in software and hardware manufacturing.
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 hold a conference call for interested analysts and shareholders to review the details of our outlook on
TAGS
2020 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 are a mobility technology company. We have over 166,000 entrepreneurial-minded employees 346 manufacturing operations and 92 product development, engineering and sales centres in 28 countries. We have complete vehicle engineering and contract manufacturing expertise, as well as product capabilities which include body, chassis, exterior, seating, powertrain, active driver assistance, electronics, mechatronics, mirrors, lighting and roof systems. Magna also has electronic and software capabilities across many of these areas. Our common shares trade on the
4 Manufacturing operations, product development, engineering and sales centres and employee figures include certain 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, 2020-2022 outlook period statements related to:
|
|
|
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
|
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
Source: Magna International Inc.