Magna International net income increases 19% during first quarter
Magna International Inc., a Canadian auto supplier with 31 operations and more than 24,000 employees in Mexico, reported a 19% hike in net income during the first quarter of 2017. The company totaled sales of US$ 9.37 billion for the period, an increase of 5% over the first quarter of 2016.
The strong year over year growth was achieved despite North American light vehicle production declining by 1% and European light vehicle production increasing only 2% compared to the first quarter of 2016, said the company in its quarterly report.
Complete vehicle assembly sales decreased 31% in the first quarter of 2017 largely reflecting the end of production of the MINI Countryman and Paceman in 2016, partially offset by the start of production of the BMW 5-Series at the company’s assembly facility in Graz Austria.
During the first quarter of 2017, income from operations before taxes was US$ 806 million, up 19% compared to the first quarter of 2016.
Net income attributable to Magna International Inc. was US$ 586 million, 19% higher than the first quarter of 2016. Diluted earnings per share increased 25% to US$ 1.53 in the first quarter of 2017, which includes the favorable impact of a reduced share count.
During the first quarter of 2017, Adjusted EBIT increased 19% to US$ 831 million, compared to US$ 698 million for the first quarter of 2016. Our North America, Europe, Asia and Rest of World segments all posted higher Adjusted EBIT and Adjusted EBIT percentage of sales, compared to the first quarter of 2016.
During the first quarter, cash provided from operating activities totaled US$ 443 million, up 46% from the first quarter of 2016. This includes cash generated from operations of US$ 870 million before changes in operating assets and liabilities, and US$ 427 million invested in operating assets and liabilities. Total investment activities for the first quarter of 2017 were US$ 392 million, including US$ 309 million in fixed asset additions and US$ 83 million in investments, other assets and intangible assets