Magna Announces 2004 Outlook
AURORA, Ontario, January 7 /PRNewswire/ -- Magna International Inc. (TSX:
MG.A, MG.B; NYSE: MGA) announced today
its outlook for 2004. "We look forward to an exciting 2004. We anticipate a higher level of
sales which is expected to contribute to earnings growth for Magna" said
Belinda Stronach, Magna's President and Chief Executive Officer. "We will
continue to focus on providing our customers with high quality, value-
enhancing products at competitive prices. This will be achieved through our
ongoing emphasis on innovation and technology, relentless dedication to
continuous improvement, strong engineering and program management, and
close attention to new product launches."
For the full year 2004 the Company expects its sales to be between
US$17.9 billion and US$18.8 billion, based on full year 2004 light vehicle
production volumes of approximately 16.1 million units in North America and
approximately 16.4 million units in Europe. Full year 2004 average dollar
content per vehicle is expected to be between US$575 and US$595 in North
America and between US$465 and US$490 in Europe. In addition, the Company expects that full year 2004 spending for fixed
assets will be in the range of US$800 million to US$850 million. The Company also announced its outlook for growth in content per
vehicle from 2003 to 2006. The Company expects 2006 content per vehicle to
be between US$690 and US$730 in North America and between US$490 and US$530
in Europe. This represents an expected 3-year compound average growth rate
in content per vehicle, for North America and Europe combined, in the range
of 12% to 15%. Vincent Galifi, Magna's Executive Vice President and Chief Financial
Officer stated: "Magna enters 2004 with one of the strongest balance sheets
in the industry. While this balance sheet provides management with
significant resources to pursue growth opportunities, Magna remains
committed to a disciplined approach to capital investment. This approach
applies consistently to fixed asset and working capital investments as well
as potential acquisitions."
Magna, the most diversified automotive supplier in the world, designs,
develops and manufactures automotive systems, assemblies, modules and
components, and engineers and assembles complete vehicles, primarily for
sale to original equipment manufacturers of cars and light trucks in North
America, Europe, Mexico, South America and Asia. Magna's products include:
automotive interior and closure components, systems and modules through
Intier Automotive Inc.; metal body systems, components, assemblies and
modules through Cosma International; exterior and interior mirror and
engineered glass systems through Magna Donnelly; fascias, front and rear
end modules, plastic body panels, exterior trim components and systems,
greenhouse and sealing systems, roof modules and lighting components
through Decoma International Inc.; various engine, transmission and fueling
systems and components through Tesma International Inc.; and a variety of
drivetrain components and complete vehicle engineering and assembly through
Magna Steyr. Magna has approximately 72,000 employees in 201 manufacturing
operations and 48 product development and engineering centres in 22 countries.
Magna will present its 2004 outlook at the Auto Analysts of New York
(AANY) Detroit Auto Conference, held in conjunction with the Detroit Auto
Show, on Thursday, January 8, 2004 at 11:45 am EST. Magna will also webcast
the presentation at www.magna.com. Magna's presentation will be made by
Vincent Galifi, Executive Vice President and Chief Financial Officer and
Louis Tonelli, Vice President, Investor Relations.
This press release may contain "forward-looking statements" within the
meaning of applicable securities legislation. Such statements involve
certain risks, assumptions and uncertainties, which may cause the Company's
actual future results and performance to be materially different from those
expressed or implied in these statements. These risks, assumptions and
uncertainties include, but are not limited to: global economic conditions
causing decreases in production volumes; price reduction pressures;
pressure to absorb certain fixed costs; increased warranty, recall and
product liability risk; the impact of financially distressed sub-suppliers;
dependence on outsourcing by automobile manufacturers; rapid technological
and regulatory change; increased crude oil and energy prices; dependence on
certain vehicle programs; fluctuations in relative currency values;
unionisation activity; threat of
work stoppages; the competitive nature of the auto parts supply market;
program cancellations, delays in launching new programs and delays in
constructing new facilities; completion and integration of acquisitions;
disruptions caused by terrorism or war; changes in governmental regulations;
the impact of environmental regulations; and other factors as set out in
the Company's Annual information Form and annual report on Form 40-F for
its financial year ended December 31, 2002 filed with the Canadian
securities commissions and the SEC respectively and subsequent public
filings. The Company disclaims any intention and undertakes no obligation
to update or revise any forward-looking statements to reflect subsequent
information, events or circumstances or otherwise. DATASOURCE: Magna International Inc For further information: Vincent Galifi or Louis Tonelli at +1 (905)
726-7100
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