Canadian automotive supplier Magna International Inc. reported better-than-expected first quarter results on a record profit of US$ 660 million or US$ 1.83 per share for the quarter, up 14.4% from US$ 577 million, or US$ 1.51 per share a year ago. Revenue totaled US$ 10.8 billion, up 21.3% compared with US$ 8.9 billion in the same quarter last year.
Given the latest results, the company raised its full-year sales target to a range between US$ 40.9 billion and US$ 43.1 billion, up from its previous forecast range of US$ 39.3 billion to US$ 41.5 billion, and 2018 net income of US$ 2.4 billion to US$ 2.6 billion, slightly higher than its previous projection of US$ 2.3 billion to US$ 2.5 billion.
During the company’s annual general meeting in Ontario, Magna International’s chief executive Don Walker said he was “cautiously optimistic” that talks to renegotiate NAFTA would result in a competitive trade deal.
Last month, Magna opened its 32nd manufacturing plant in Mexico. The first stage of a US$ 233 million investment officially started operations at a 189,000-square-foot facility located in San Luis Potosi that will produce structural welded assemblies for global automakers including BMW and Mercedes-Benz.
The plant currently employs 400 people and is expected to grow to approximately 1,000 employees at full production.
Except for its vehicle engineering and contract manufacturing division, every other business branch of Magna International has presence in Mexico. Overall the company’s workforce in Mexico currently totals more than 28,000 employees.