OTTAWA (dpa-AFX) - Magna International Inc. (MG.TO, MGA) announced, for 2019, the company projects: net income attributable to Magna of $2.1 - $2.3 billion; EBIT Margin of 7.3% - 7.6%; and total sales of $40.2 - $42.4 billion. The company said its sales are expected to be negatively impacted by the announced disposition of Fluid Pressure & Controls business, net of acquisitions, and by foreign currency translation, reflecting the stronger U.S. dollar. Excluding items, total sales are expected to increase in 2019, compared to 2018. The company said its outlook anticipates a slight decline in EBIT Margin in 2019 reflecting, among other factors, higher commodity costs, increased spending for electrification and autonomy, a decline in equity income, and a higher proportion of lower margin Complete Vehicle sales.
For 2021, the company projects: EBIT margin of 8.1% - 8.5%; and total sales of $42.4 - $45.4 billion. The company said its outlook to 2021 anticipates continued growth in total sales and improvement in EBIT Margin compared to 2018 despite expectation of relatively level light vehicle production across major end markets of North America and Europe during the outlook period.
Magna expects free cash flow to increase to a cumulative total of more than $6.5 billion in the 2019-2021 timeframe as compared to over $6 billion in the 2018-2020 period, reflecting an anticipated increase in earnings and relatively level capital spending.
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