Magna Updates 2022 Outlook to Reflect Preliminary Full Year 2022 Results
January 24 2023 - 6:00AM
Magna International Inc. (TSX: MG; NYSE: MGA) today announced that
it has updated its 2022 outlook to reflect an expected Adjusted
EBIT Margin1 below the range disclosed in its press release dated
November 4, 2022.
Based on preliminary unaudited results, total
sales for 2022 were approximately $37.8 billion, compared to the
range of $37.4 to $38.4 billion disclosed in its November outlook.
However, Adjusted EBIT Margin for 2022 is expected to be
approximately 4.3%, which is below the 4.8% to 5.0% range disclosed
in its November outlook. The reduced Adjusted EBIT Margin reflects
a number of items, including: decreased contribution on lower
sales; higher net warranty costs; provisions against certain
accounts receivable and other balances; higher net engineering
expense due to the revised timing of both spending and customer
recoveries; operating underperformance at certain facilities; and
higher labour and other operational inefficiencies as a result of
the continued unpredictability of our customers’ production
schedules. Adjusted net income attributable to Magna2 is also
impacted by the factors above.
Magna will report its financial results for the
fourth quarter and full year 2022 on February 10, 2023.
TAGSOutlook, sales, Adjusted EBIT Margin
INVESTOR CONTACTLouis Tonelli, Vice-President, Investor
Relations louis.tonelli@magna.com, 905.726.7035
MEDIA CONTACTTracy Fuerst, Vice-President, Corporate
Communications & PR tracy.fuerst@magna.com, 248.761.7004
OUR BUSINESS3Magna is more than one of the
world’s largest suppliers in the automotive space. We are a
mobility technology company with a global, entrepreneurial-minded
team of over 170,000 employees and an organizational structure
designed to innovate like a startup. With 65+ years of expertise,
and a systems approach to design, engineering and manufacturing
that touches nearly every aspect of the vehicle, we are positioned
to support advancing mobility in a transforming industry. Our
global network includes 345 manufacturing operations and 90 product
development, engineering and sales centres spanning 28
countries.
For further information about Magna (NYSE:MGA;
TSX:MG), please visit www.magna.com or follow us on Twitter
@MagnaInt.
THIS RELEASE MAY CONTAIN STATEMENTS
WHICH CONSTITUTE “FORWARD-LOOKING STATEMENTS” UNDER APPLICABLE
SECURITIES LEGISLATION AND ARE SUBJECT TO, AND EXPRESSLY QUALIFIED
BY, THE CAUTIONARY DISCLAIMERS THAT ARE SET OUT IN MAGNA’S
REGULATORY FILINGS. PLEASE REFER TO MAGNA’S MOST CURRENT
MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL POSITION, ANNUAL INFORMATION FORM AND ANNUAL REPORT ON
FORM 40-F, AS REPLACED OR UPDATED BY ANY OF MAGNA’S SUBSEQUENT
REGULATORY FILINGS, WHICH SET OUT THE CAUTIONARY DISCLAIMERS,
INCLUDING THE RISK FACTORS THAT COULD CAUSE ACTUAL EVENTS TO DIFFER
MATERIALLY FROM THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS.
THESE DOCUMENTS ARE AVAILABLE FOR REVIEW ON MAGNA’S WEBSITE
AT WWW.MAGNA.COM.
1 Adjusted EBIT Margin is the ratio of Adjusted EBIT to Total
Sales2 Adjusted net income attributable to Magna excludes Other
expense (income), net3 Manufacturing operations, product
development, engineering and sales centres and employee figures
include certain equity-accounted operations.
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