Magna International - MGA STOCK NEWS

Magna International reported Q4 2022 sales of $9.6 billion, a 5% increase year-over-year, with a 13% rise when excluding currency effects. However, diluted earnings per share fell to $0.33 from $1.54, while adjusted diluted EPS decreased to $0.91 from $1.30. The company's income from operations before taxes dropped to $146 million from $576 million due to higher costs and net expenses. For 2022, total sales reached $37.8 billion, up 4%, but adjusted EBIT declined to $1.66 billion. Magna announced a quarterly dividend of $0.46 per share and forecasts sales growth exceeding vehicle production globally through 2023.

AURORA, Ontario, Jan. 24, 2023 (GLOBE NEWSWIRE) -- Magna International Inc. (NYSE: MGA) has revised its 2022 outlook, forecasting an Adjusted EBIT Margin of approximately 4.3%, down from the previously estimated 4.8% to 5.0%. Total sales are projected at $37.8 billion, slightly above the prior range of $37.4 to $38.4 billion. Factors leading to the lower margin include decreased sales contribution, higher warranty costs, provisions for receivables, and increased operational inefficiencies due to unpredictable production schedules. Magna will release its fourth quarter and full year financial results on February 10, 2023.

Magna has launched its innovative ClearView™ vision system on the Ram 2500 and 3500 Heavy Duty trucks. This advanced technology combines interior and exterior mirrors with integrated cameras, aiming to enhance vehicle safety by improving visibility and reducing blind spots. Key features include a rear-view video mirror and customizable display options, marking it as a first-to-market product. The system processes data through a central electronic control unit, ensuring optimal performance while towing with an optional trailer camera. ClearView™ underscores Magna's commitment to providing comprehensive safety solutions in the automotive sector.

Magna International Inc. has announced its Q4 and year-end 2022 results and will hold a conference call on February 10, 2023, at 8:00 AM ET. Investors can participate via toll-free or international numbers provided, or through a webcast on the company’s website. A slide presentation will be available before the call, and a replay will be accessible for two hours after the event until February 17, 2023. For more information, contact investor relations.

Magna has unveiled its new Morphing Surfaces technology, a significant innovation in automotive design that enhances efficiency and aerodynamics. This next-generation vehicle exterior solution allows for shape-changing components, potentially achieving a 10% drag reduction and up to 5% range extension for electric vehicles. Morphing Surfaces not only improves aerodynamic performance but also integrates seamlessly with vehicle aesthetics. The technology will debut at the Consumer Electronics Show in January 2023.

Magna International has agreed to acquire Veoneer's Active Safety business from SSW Partners for $1.525 billion in cash, enhancing its Advanced Driver Assistance Systems (ADAS) capabilities. The combined pro forma ADAS sales are projected to reach $3 billion by 2024. This acquisition strengthens Magna’s position as a leading full-service ADAS provider, adding 2,200 engineers and diversifying its customer base and geographic presence. The transaction, expected to close mid-year 2023, will not significantly alter Magna’s leverage profile, ensuring continued financial flexibility.

Greentown Labs, BASF, and Magna announced the Go Move 2022 program, focusing on automotive decarbonization. Five startups were selected to innovate in emissions-reducing technologies, including Carbonova, Endeavor Composites, FibreCoat, Heartland Industries, and MITO Materials Solutions. They will collaborate with BASF and Magna over six months, benefiting from mentorship, funding of $25,000, and access to resources aimed at advancing their technologies. This initiative aligns with the goal of reducing the transportation sector's 16% share of global greenhouse gas emissions.

Magna will showcase its innovative mobility solutions at CES 2023 in Las Vegas, emphasizing its leadership in creating eco-friendly and advanced vehicle technologies. Located in booth #4425, the exhibit will feature the first public display of its morphing surfaces and SmartAccess™ solution for improved vehicle accessibility. Magna's presence at the event will reinforce its commitment to redefining mobility through its holistic vehicle and systems expertise, highlighting advancements such as ICON™ Digital Radar and various electrification technologies.

Magna International (TSX: MG, NYSE: MGA) announced that the Toronto Stock Exchange accepted its Notice of Intention to initiate a Normal Course Issuer Bid, allowing it to repurchase up to 28,445,000 common shares, representing approximately 10% of its public float. The buyback aims to cancel shares and fund stock-based compensation programs. The program will run from November 15, 2022, to November 14, 2023, with purchase limits based on trading volume. Previously, Magna bought 15,228,679 shares at an average price of US$65.37 under an earlier bid expiring on November 14, 2022.