Magna International Sees FY14 Sales Below Estimates - Update

(RTTNews) - Canadian automotive supplier Magna International Inc. (MGA, MG.TO) Wednesday issued total sales guidance for full-year 2014, that came in below Street analysts' expectations.

For full year 2014, the firm anticipates total sales to be between $33.8 billion and $35.5 billion. On average, 17 anlysts polled by Thomson Reuters expect the company to report revenues of $36.16 billion for 2014. Analysts' estimates typically exclude special items.

Don Walker, chief executive officer of the company said, "Our outlook indicates our continued progress in expanding our business in high growth regions, particularly in Asia. In addition, our outlook reflects our commitment to improving operating results in Europe including through ongoing restructuring, implementing operational improvements and exercising discipline in quoting new business."

In addition to its progress in Asia and Europe, ongoing strong performance in North America, is expected to result in continued improvement in its consolidated operating margin in the coming years, Magna stated.

Operating margin for the year is expected to be in a mid 6 percent range.

The company projects 2014 total production sales to be in the range of $28.6 billion to $29.9 billion, based on assumed full year 2014 light vehicle production volumes of about 16.7 million units in North America and about 19.1 million units in Europe.

Production sales in North America is expected to be in the range of $16.8 billion to $17.4 billion, and in Europe, $9.5 billion to $9.9 billion.

Further, Magna said it anticipates 2016 total production sales to be about $3.6 billion higher than 2014, based on assumed full year 2016 light vehicle production volumes of nearly 17.7 million units in North America and around 20.9 million units in Europe.

It expects the increase in total production sales to be 45 percent in North America, 25 percent in Europe and 30 percent in Rest of World. MGA closed Tuesday's regular trading at $84.18 on the NYSE, while MG.TO ended at C$92.14 on the Toronto Stock Exchange.