Magna reports sales decrease in third quarter 2024, with adjusted earnings per share down.
From GlobeNewswire: 2024-11-01 05:00:00
Magna International Inc. reported a sales decrease to $10.3 billion, in line with the 4% reduction in global light vehicle production. Diluted earnings per share were $1.68, up $0.31, while adjusted diluted earnings per share were $1.28, down $0.18, including $0.10 due to a higher income tax rate. A Normal Course Issuer Bid will repurchase up to 10% of Common Shares.
The third quarter of 2024 saw Magna’s sales decline to $10.3 billion, reflecting a 4% decrease in global light vehicle production. Adjusted EBIT dropped to $594 million, mainly due to reduced earnings on lower sales and higher production input costs. Income from operations before income taxes increased to $700 million, including recognition of Fisker deferred revenue.
For the nine months ending September 30, 2024, Magna posted sales of $32.2 billion, down from $32.3 billion in the same period in 2023. Adjusted EBIT for the period was $1.64 billion, reflecting reduced earnings on lower sales and higher production input costs. Lower assembly volumes and equity income also contributed to the decrease. Magna International Inc. reported income from operations before income taxes of $1.16 billion for the nine months ending September 30, 2024. Net income attributable to Magna was $806 million, with diluted earnings per share at $2.81, decreases compared to the same period in 2023. Adjusted diluted earnings per share also decreased by 10% to $3.72.
Cash generated from operations before changes in operating assets and liabilities was $2.06 billion in the first nine months of 2024. Investment activities included $1.47 billion in fixed asset additions and $410 million increase in investments and other assets. Dividends of $138 million were paid during the quarter.
The Board of Directors declared a third-quarter dividend of $0.475 per Common Share, payable on November 29, 2024. They also approved a new Normal Course Issuer Bid to purchase up to approximately 28.5 million of Common Shares. Segment sales for the three months ending September 30, 2024, saw a decrease compared to the same period in 2023.
For the nine months ending September 30, 2024, Magna’s total sales decreased slightly compared to 2023. Adjusted EBIT margin as a percentage of sales also saw a marginal decrease. The company provided an updated Outlook for 2024, with revised assumptions and segment sales expectations. Key drivers of Magna’s business include OEM production volumes and factors affecting vehicle sales levels. Magna reports revenue generated from acquired intangible assets is included in determining net income. Excluding amortization of acquired intangible assets from Non-GAAP measures helps understand underlying performance and comparability. Adjusted EBIT for Q3 2024 at $594 million, margin at 5.8%. Adjusted diluted earnings per share for Q3 2024 at $1.28. Conference call scheduled for discussing Q3 results on November 1, 2024.
Magna, a mobility technology company, has over 175,000 employees across 28 countries. With 65+ years of expertise, they aim to advance mobility in an expanded transportation landscape. For further information about Magna, visit www.magna.com. Manufacturing operations and product development centers are accounted for under the equity method. The number of employees includes over 162,000 employees at wholly owned entities and over 13,000 employees at certain operations accounted for under the equity method. Magna International Inc. released a list of potential risks related to forward-looking statements. Risks include production disruptions, supply chain disruptions, and the impact of interest rates on consumer confidence. Other risks involve commodity prices, currency values, and the ability to secure cost recoveries from customers. Magna also highlighted risks related to conducting business through joint ventures and in foreign markets.
In addition to the risks listed, Magna International Inc. cautions readers not to rely too heavily on forward-looking statements. Factors such as inflationary pressures, geopolitical risks, and intense competition could impact actual events or results. It’s important for readers to consider all risk factors discussed in the company’s filings with securities commissions in Canada and the United States Securities and Exchange Commission.
Readers can access more information about Magna, including risk mitigation activities, through various electronic data analysis and retrieval systems. The company’s Annual Information Form is available on the System for Electronic Data Analysis and Retrieval + (SEDAR+) and the United States Securities and Exchange Commission’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR). A photo accompanying the announcement can be viewed on the provided link. 1. The stock market reached record highs today, with the Dow Jones Industrial Average closing at 35,000 points for the first time in history.
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Read more at GlobeNewswire:: Magna Announces Third Quarter 2024 Results