Despite decline in auto production, Magna posts record sales, profits
Canadian auto parts manufacturer Magna International Inc posted a US$ 561 million net income for the second quarter ended June 30, 2017, representing an increase of 1% compared to same period of 2016 and a record figure for a second quarter.
The company also reported all-time quarterly record sales of US$ 9.68 billion an increase of 3% over the second quarter of 2016, raising its full-year sales forecast for the second time in three months from US$ 37.7 billion to US$ 39.4 billion.
Sales in North America, the company’s biggest market, increased just 0.4% to US$ 5.37 billion. Sales from operations in Mexico totaled US$ 1.42 billion in the second quarter, up 9% compared to the US$ 1.3 billion in sales from the same period of 2016. For the first half of 2017 Mexican sales totaled US$ 2.75 billion, an increase of 6.6% against the US$ 2.58 billion from 2016.
The growth was achieved despite North American and European light vehicle production declining by 3% and 1%, respectively, both compared to the second quarter of 2016.
North American light vehicle production decreased 1% and European light vehicle production increased 1%, in the first six months of 2017 compared to the first six months of 2016. Nonetheless, Magna posted sales of US$ 19.06 billion for that, an increase of 4% from the six months ended June 30, 2016.
Based in Aurora, Ontario, Magna established its first Mexico facility in Puebla in 1991. Currently, the company operates 30 manufacturing sites and a Research Center in Mexico. Together all facilities employ more than 29,000 workers. General Motors, Volkswagen, BMW and Ford Motor are among Magna’s biggest customers.