Magna International, Inc. MGA shares fall in the premarket session after reporting first-quarter results.
The company reported adjusted earnings per share of $1.08, missing the street view of $1.25.
The company recorded asset impairments and restructuring totaling $316 million related to Fisker Inc. FSRN.
Lower volumes in the Complete Vehicles segment and the net weakening of foreign currencies against the U.S. dollar affected quarterly performance.
However, quarterly revenues of $10.970 billion beat the street view of $10.953 billion. Sales increased 3% year over year, compared to a 2% rise in global light vehicle production.
Magna International gained from 2% and 11% higher production in North America and China, respectively, partially offset by 2% lower production in Europe.
In addition to higher global production, the company’s sales benefitted from launching new programs and acquiring Veoneer Active Safety.
Adjusted EBIT increased to $469 million in the quarter compared to $449 million in the first quarter of 2023.
Dividend: The company declared a first-quarter dividend of $0.475 per common share, payable on May 31 to shareholders of record as of the close of business on May 17.
Outlook Lowered: Magna International expects 2024 sales of $42.6 billion-$44.2 billion (prior $43.8 billion-$45.4 billion) vs $44.443 billion estimate. The company sees adjusted net income of $1.5 billion-$1.7 billion (prior view: $1.6 billion-$1.8 billion).
Price Action: MGA shares are trading lower by 3.45% to $46.75 premarket at the last check Friday.
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