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Magna Announces Third Quarter and Year to Date Results

AURORA, Ontario, November 6 -- Magna International Inc. (TSX: MG.A; NYSE: MGA) today reported financial results for the third quarter and nine months ended September 30, 2007.

    
                               Three Months Ended         Nine Months Ended
                               September 30,              September 30,
                               2007          2006         2007         2006
 
    Sales                 US$ 6,077     US$ 5,424   US$ 19,231   US$ 17,812
 
    Operating income        US$ 267       US$ 155      US$ 949      US$ 750
 
    Net income              US$ 155        US$ 94      US$ 635      US$ 499
 
    Diluted earnings
    per share              US$ 1.38      US$ 0.86      US$5.69      US$4.52
 
    All results are reported in millions of U.S. dollars, except per share     
    figures.

Three Months Ended September 30, 2007

We posted sales of US$6.1 billion for the third quarter ended September 30, 2007, an increase of 12% over the third quarter of 2006. This higher sales level was achieved as a result of increases in our North American, European and Rest of World production sales offset in part by reductions in our complete vehicle assembly sales and our tooling, engineering and other sales.

During the third quarter of 2007, our North American and European average dollar content per vehicle increased 14% and 22%, respectively, over the third quarter of 2006. In addition, North American vehicle production increased 3% while European vehicle production increased 5%, each compared to the third quarter of 2006.

Complete vehicle assembly sales decreased 16% to US$859 million for the third quarter of 2007 compared to US$1.017 billion for the third quarter of 2006, while complete vehicle assembly volumes declined 25% compared to the third quarter of 2006.

Our operating income was US$267 million for the third quarter ended September 30, 2007 compared to US$155 million for the third quarter ended September 30, 2006, and we earned net income for the third quarter of 2007 of US$155 million compared to US$94 million for the third quarter of 2006.

Diluted earnings per share were US$1.38 for the third quarter ended September 30, 2007 compared to US$0.86 for the third quarter ended September 30, 2006.

During the third quarter ended September 30, 2007, we generated cash from operations before changes in non-cash operating assets and liabilities of US$300 million, and invested US$83 million in non-cash operating assets and liabilities. Total investment activities for the third quarter of 2007 were US$319 million, including US$174 million in fixed asset additions and a US$145 million increase in investments and other assets.

Nine Months Ended September 30, 2007

We posted sales of US$19.2 billion for the nine months ended September 30, 2007, an increase of 8% over the nine months ended September 30, 2006. This higher sales level was achieved as a result of increases in our North American, European and Rest of World production sales offset in part by reductions in our complete vehicle assembly sales and our tooling, engineering and other sales.

During the nine months ended September 30, 2007, North American and European average dollar content per vehicle increased 10% and 18%, respectively, each over the comparable nine-month period in 2006. During the nine months ended September 30, 2007, North American vehicle production declined 2% while European vehicle production increased 4%, each in comparison to the nine months ended September 30, 2006.

Complete vehicle assembly sales decreased 3% to US$3.027 billion for the nine months ended September 30, 2007 compared to US$3.132 billion for the nine months ended September 30, 2006, while complete vehicle assembly volumes declined 14% compared to the first nine months of 2006.

Our operating income was US$949 million for the nine months ended September 30, 2007 compared to US$750 million for the nine months ended September 30, 2006, and we earned net income of US$635 million for the first nine months of 2007 compared to US$499 million for the first nine months of 2006.

Diluted earnings per share were US$5.69 for the nine months ended September 30, 2007 compared to US$4.52 for the nine months ended September 30, 2006.

During the nine months ended September 30, 2007, we generated cash from operations before changes in non-cash operating assets and liabilities of US$1.258 billion, and invested US$494 million in non-cash operating assets and liabilities. Total investment activities for the first nine months of 2007 were US$657 million, including US$436 million in fixed asset additions, US$46 million to purchase subsidiaries, and a US$175 million increase in investments and other assets.

A more detailed discussion of our consolidated financial results for the third quarter and nine months ended September 30, 2007 is contained in the Management's Discussion and Analysis of Results of Operations and Financial Position and the unaudited interim consolidated financial statements and notes thereto, which are attached to this Press Release.

2007 Outlook

For the full year 2007, we expect consolidated sales to be between US$25.0 billion and US$26.3 billion, based on full year 2007 light vehicle production volumes of approximately 15.1 million units in North America and approximately 15.8 million units in Europe. Full year 2007 average dollar content per vehicle is expected to be between US$845 and US$875 in North America and between US$410 and US$435 in Europe. We expect full year 2007 complete vehicle assembly sales to be between US$3.8 billion and US$4.1 billion.

In addition, we expect that full year 2007 spending for fixed assets will be in the range of US$775 million to US$825 million.

In our 2007 outlook we have assumed no significant acquisitions or divestitures, and no significant labour disruptions in our principal markets. In addition, we have assumed that foreign exchange rates for the most common currencies in which we conduct business relative to our U.S. dollar reporting currency will approximate current rates.

Other Matters

Subject to approval by the Toronto Stock Exchange ("TSX") and the New York Stock Exchange ("NYSE"), our Board of Directors yesterday approved the purchase for cancellation and/or for purposes of our long-term retention (restricted stock) and restricted stock unit programs, up to 9,500,000 of our Class A Subordinate Voting Shares, representing approximately 9.8% of our public float of Class A Subordinate Voting Shares, pursuant to a normal course issuer bid. The normal course issuer bid is expected to commence on or about November 12, 2007 and will terminate one year later. All purchases of Class A Subordinate Voting Shares will be made at the market price at the time of purchase in accordance with the rules and policies of the TSX and the NYSE, including Rule 10b-18 under the U.S. Securities Exchange Act of 1934.

Our Board of Directors yesterday declared a quarterly dividend of U.S. US$0.36 per share with respect to our outstanding Class A Subordinate Voting Shares and Class B Shares for the quarter ended September 30, 2007. The dividend is payable on December 14, 2007 to shareholders of record on November 30, 2007.

We are the most diversified automotive supplier in the world. We design, develop and manufacture automotive systems, assemblies, modules and components, and engineer and assemble complete vehicles, primarily for sale to original equipment manufacturers of cars and light trucks in North America, Europe, Asia, South America and Africa. Our capabilities include the design, engineering, testing and manufacture of automotive metal body and chassis systems; powertrain systems; exterior systems; seating systems; interior systems; vision systems; closure systems; roof systems; electronic systems; as well as complete vehicle engineering and assembly.

We have approximately 83,000 employees in 240 manufacturing operations and 62 product development and engineering centres in 23 countries.

For further information about Magna, please see our website at http://www.magna.com. Copies of financial data and other publicly filed documents are available through the internet on the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) which can be accessed at http://www.sedar.com and on the United States Securities and Exchange Commission's Electronic Data Gathering, Analysis and Retrieval System (EDGAR) which can be accessed at http://www.sec.gov.