Magna reports flat fourth-quarter earnings

TORONTO, Feb 14 Reuters reports that autoparts maker Magna International Inc. reported flat fourth-quarter earnings on Thursday amid a slowdown in the North American automotive industry.

Magna, one of the world's biggest autoparts makers, said fourth-quarter earnings were $119 million, or $1.28 a share, in the quarter ended Dec. 31, little changed from earnings of $120 million, or $1.28 a share, for the corresponding period the year before.

Revenues were $2.83 billion, up from $2.74 billion.

Sixteen analysts polled by Thomson Financial/First Call had forecast earnings of $1.20 to $1.45 a share with a consensus of $1.29, excluding goodwill.

The earnings were in line with earlier company guidance. In November, Magna forecast that fourth-quarter fully diluted earnings from operations would be in the range of $1.20 to $1.40 a share, on sales of $2.5 billion to $2.7 billion.

Aurora, Ontario-based Magna said that while overall vehicle production fell in North America and Europe last year, it had an increase in its content per vehicle.

``The higher automotive sales reflect a 17 percent increase in North American content per vehicle, a 10 percent increase in European content per vehicle and a 6 percent increase in tooling and other sales,'' the company said in a statement.

Magna reaffirmed its outlook for both the full year and first quarter of 2002, first announced on Jan 10. It had said it expects earnings per share from operations for the year to be in the range of $5.25 to $5.90, and sales of $10.8 billion to $11.6 billion.

For the first quarter, it expects diluted earnings per share from operations of $1.40 to $1.70, and sales between $2.7 billion and $2.9 billion.

For full-year 2001, Magna reported net income of $580 million, or $6.20 a share, compared with net income of $598 million, or $6.44 per share, in 2000.

Revenues rose to a record $11 billion from $10.5 billion in 2000.

Magna's stock, which hit a 52-week high of C$111.85 on Jan. 7, closed up 21 Canadian cents at C$102.51 on the Toronto Stock Exchange on Thursday.

($1 equals $1.59 Canadian)