Magna International Q3 Earnings Lags Street View

Magna International Inc MGA reported a third-quarter FY21 sales decline of 13% year-on-year, to $7.9 billion, missing the analyst consensus of $9.3 billion.
Results were negatively impacted by lower light vehicle production substantially due to continued industry semiconductor chip shortages, production inefficiencies driven by unpredictable OEM production schedules, increased production and commodity costs.
Global light vehicle production declined 12%, including decreases of 20% in Europe, 19% in North America, and 12% in China.
Body Exteriors & Structures segment sales decreased 17.44% Y/Y, Power & Vision fell 8.1%, Seating Systems declined 12.3%, and Complete Vehicles sales declined 10.5%.
Income from operations before income taxes for the quarter was $27 million versus $436 million last year.
Adjusted EBIT was $229 million with an adjusted EBIT margin of 2.9%.
Adjusted EPS of $0.56 missed the analyst consensus of $1.59.
The company's third-quarter dividend of $0.43 per share is payable on December 3, 2021, to shareholders of record on November 19, 2021.
Outlook: Magna sees FY21 total sales of $35.4 billion - $36.4 billion, below the consensus of $38.98 billion. In October, the company reduced its sales outlook from the prior view of $38.0 billion - $39.5 billion.
Price Action: MGA shares traded lower by 0.25% at $83.7 on the last check Friday.

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