Magna International : Q1 2024 Financial Review - Form 6-K
May 06, 2024 at 06:27 am EDT
Share
FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.
(United States dollars in millions, except per share figures) (Unaudited)
Prepared in accordance with U.S. GAAP
2022
2023
2024
Note
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
VEHICLE VOLUME STATISTICS (in millions)
North America
3.615
3.551
3.600
3.514
14.280
3.884
4.080
3.930
3.743
15.637
3.963
Europe
3.997
4.020
3.597
4.188
15.802
4.581
4.598
3.825
4.357
17.361
4.497
China
6.361
5.489
7.235
7.264
26.349
5.936
6.797
7.657
8.940
29.330
6.601
Other
6.375
6.140
6.704
6.858
26.077
6.968
6.715
6.998
7.189
27.870
6.832
Global
20.348
19.200
21.136
21.824
82.508
21.369
22.190
22.410
24.229
90.198
21.893
Magna Steyr vehicle assembly volumes
0.026
0.032
0.026
0.028
0.112
0.034
0.027
0.023
0.021
0.105
0.022
AVERAGE FOREIGN EXCHANGE RATES
1 Canadian dollar equals U.S. dollars
0.790
0.783
0.765
0.737
0.769
0.740
0.745
0.746
0.735
0.742
0.741
1 euro equals U.S. dollars
1.123
1.064
1.006
1.019
1.053
1.073
1.089
1.088
1.076
1.082
1.085
1 Chinese renminbi equals U.S. dollars
0.158
0.151
0.146
0.140
0.149
0.146
0.143
0.138
0.138
0.141
0.139
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
Sales:
Body Exteriors & Structures
4,077
3,947
3,976
4,004
16,004
4,439
4,540
4,354
4,178
17,511
4,429
Power & Vision
3,046
2,888
2,911
3,016
11,861
3,323
3,462
3,745
3,775
14,305
3,842
Seating Systems
1,376
1,253
1,295
1,345
5,269
1,486
1,603
1,529
1,429
6,047
1,455
Complete Vehicles
1,275
1,403
1,213
1,330
5,221
1,626
1,526
1,185
1,201
5,538
1,383
Corporate & Other
(132)
(129)
(127)
(127)
(515)
(201)
(149)
(125)
(129)
(604)
(139)
Sales
9,642
9,362
9,268
9,568
37,840
10,673
10,982
10,688
10,454
42,797
10,970
Costs and expenses:
Cost of goods sold
8,400
8,259
8,126
8,403
33,188
9,416
9,544
9,264
8,961
37,185
9,642
Selling, general and administrative
386
410
387
477
1,660
488
505
491
566
2,050
516
Equity income
(20)
(25)
(27)
(17)
(89)
(33)
(36)
(40)
(3)
(112)
(34)
Adjusted EBITDA
876
718
782
705
3,081
802
969
973
930
3,674
846
Depreciation
357
348
330
338
1,373
353
353
358
372
1,436
377
Adjusted EBIT
519
370
452
367
1,708
449
616
615
558
2,238
469
Amortization of acquired intangible assets
12
12
11
11
46
12
13
32
31
88
28
Other expense (income), net
1
61
426
23
193
703
142
86
(4)
164
388
356
Interest expense, net
26
20
18
17
81
20
34
49
53
156
51
Income (loss) from operations before income taxes
420
(88)
400
146
878
275
483
538
310
1,606
34
Income tax expense
41
57
104
35
237
58
129
121
12
320
8
Net income (loss)
379
(145)
296
111
641
217
354
417
298
1,286
26
Income attributable to non-controlling interests
(15)
(11)
(7)
(16)
(49)
(8)
(15)
(23)
(27)
(73)
(17)
Net income (loss) attributable to Magna International Inc.
364
(156)
289
95
592
209
339
394
271
1,213
9
Diluted earnings (loss) per common share
$ 1.22
$ (0.54)
$ 1.00
$ 0.33
$ 2.03
$ 0.73
$ 1.18
$ 1.37
$ 0.94
$ 4.23
$ 0.03
Weighted average number of Common Shares outstanding
during the period (in millions):
298.1
291.1
288.5
286.3
291.2
286.6
286.3
286.8
286.6
286.6
287.1
NON-GAAP MEASURES
Adjusted EBITDA
876
718
782
705
3,081
802
969
973
930
3,674
846
Adjusted EBIT
2
519
370
452
367
1,708
449
616
615
558
2,238
469
Adjusted net income attributable to Magna International Inc.
393
253
317
270
1,233
329
441
419
383
1,572
311
Adjusted Diluted earnings per common share
$ 1.32
$ 0.87
$ 1.10
$ 0.94
$ 4.24
$ 1.15
$ 1.54
$ 1.46
$ 1.33
$ 5.49
$ 1.08
PROFITABILITY RATIOS
Selling, general and administrative /Sales
4.0%
4.4%
4.2%
5.0%
4.4%
4.6%
4.6%
4.6%
5.4%
4.8%
4.7%
Adjusted EBIT /Sales
5.4%
4.0%
4.9%
3.8%
4.5%
4.2%
5.6%
5.8%
5.3%
5.2%
4.3%
Operating income /Sales
4.4%
-0.9%
4.3%
1.5%
2.3%
2.6%
4.4%
5.0%
3.0%
3.8%
0.3%
Effective tax rate
Reported
9.8%
-64.8%
26.0%
24.0%
27.0%
21.1%
26.7%
22.5%
3.9%
19.9%
23.5%
Excluding Other expense (income) and amortization, net of taxes
17.2%
24.6%
25.3%
18.3%
21.2%
21.4%
21.6%
21.9%
18.8%
21.0%
21.5%
Page 1 of 7
FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEETS
(United States dollars in millions) (Unaudited)
2022
2023
2024
1st Q
2nd Q
3rd Q
4th Q
1st Q
2nd Q
3rd Q
4th Q
1st Q
FUNDS EMPLOYED
Current assets:
Accounts receivable
7,006
6,764
7,082
6,791
7,959
8,556
8,477
7,881
8,379
Inventories
4,258
4,064
4,108
4,180
4,421
4,664
4,751
4,606
4,511
Prepaid expenses and other
310
262
269
320
367
455
387
352
399
11,574
11,090
11,459
11,291
12,747
13,675
13,615
12,839
13,289
Current liabilities:
Accounts payable
6,845
6,443
6,624
6,999
7,731
7,984
7,911
7,842
7,855
Accrued salaries and wages
879
766
810
850
822
858
900
912
883
Other accrued liabilities
2,123
2,096
1,986
2,118
2,526
2,637
2,537
2,626
2,728
Income taxes payable (receivable)
190
136
97
93
9
(14)
33
125
132
10,037
9,441
9,517
10,060
11,088
11,465
11,381
11,505
11,598
Working capital
1,537
1,649
1,942
1,231
1,659
2,210
2,234
1,334
1,691
Investments
1,487
1,375
1,323
1,429
1,390
1,287
1,311
1,273
1,195
Fixed assets, net
8,090
7,723
7,470
8,173
8,304
8,646
8,778
9,618
9,545
Goodwill, other assets and intangible assets
3,544
3,353
3,280
3,576
3,640
4,733
4,726
4,962
4,646
Operating lease right-of-use assets
1,667
1,587
1,545
1,595
1,638
1,667
1,696
1,744
1,733
Funds employed
16,325
15,687
15,560
16,004
16,631
18,543
18,745
18,931
18,810
FINANCING
Straight debt:
Cash and cash equivalents
(1,996)
(1,664)
(1,102)
(1,234)
(2,429)
(1,281)
(1,022)
(1,198)
(1,517)
Short-term borrowings
-
-
-
8
4
150
2
511
838
Long-term debt due within one year
127
105
95
654
668
1,426
1,398
819
824
Long-term debt
3,501
3,408
3,325
2,847
4,500
4,159
4,135
4,175
4,549
Current portion of operating lease liabilities
276
270
266
276
285
303
384
399
306
Operating lease liabilities
1,369
1,294
1,254
1,288
1,318
1,345
1,289
1,319
1,407
3,277
3,413
3,838
3,839
4,346
6,102
6,186
6,025
6,407
Long-term employee benefit liabilities
686
651
617
548
563
579
564
591
584
Other long-term liabilities
374
390
397
461
451
448
453
475
471
Deferred tax liabilities, net
(51)
(111)
(138)
(179)
(218)
(242)
(210)
(437)
(576)
1,009
930
876
830
796
785
807
629
479
Shareholders' equity
12,039
11,344
10,846
11,335
11,489
11,656
11,752
12,277
11,924
16,325
15,687
15,560
16,004
16,631
18,543
18,745
18,931
18,810
ASSET UTILIZATION RATIOS
Days in accounts receivable
65.4
65.0
68.8
63.9
67.1
70.1
71.4
67.8
68.7
Days in accounts payable
73.3
70.2
73.4
75.0
73.9
75.3
76.9
78.8
73.3
Inventory turnover - cost of goods sold
7.9
8.1
7.9
8.0
8.5
8.2
7.8
7.8
8.5
Working capital turnover
25.1
22.7
19.1
31.1
25.7
19.9
19.1
31.3
25.9
Total asset turnover
2.4
2.4
2.4
2.4
2.6
2.4
2.3
2.2
2.3
CAPITAL STRUCTURE
Straight debt
20.1%
21.8%
24.7%
24.0%
26.1%
32.9%
33.0%
31.8%
34.1%
Long-term employee benefit liabilities, other long-term
liabilities & deferred tax liabilities, net
6.2%
5.9%
5.6%
5.2%
4.8%
4.2%
4.3%
3.3%
2.5%
Shareholders' equity
73.7%
72.3%
69.7%
70.8%
69.1%
62.9%
62.7%
64.9%
63.4%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Debt to total capitalization
30.5%
30.9%
31.3%
30.9%
37.1%
38.8%
38.0%
37.0%
39.9%
ANNUALIZED RETURNS
Adjusted Return on equity (Adjusted Net income attributable
to Magna International Inc. / Average shareholders' equity)
13.6%
8.7%
11.4%
9.7%
11.5%
15.2%
14.3%
12.8%
10.3%
Adjusted Return on Invested Capital (Adjusted Annualized after-tax
operating profits / Invested capital)
10.6%
7.0%
8.6%
7.6%
8.7%
11.0%
10.3%
9.6%
7.8%
Page 2 of 7
FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(United States dollars in millions) (Unaudited)
2022
2023
2024
Cash provided from (used for):
Note
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
Operating activities
Net income (loss)
379
(145)
296
111
641
217
354
417
298
1,286
26
Items not involving current cash flows
370
705
295
406
1,776
351
525
404
362
1,642
565
749
560
591
517
2,417
568
879
821
660
2,928
591
Changes in operating assets and liabilities
(569)
(139)
(353)
739
(322)
(341)
(332)
(24)
918
221
(330)
Cash provided from operating activities
180
421
238
1,256
2,095
227
547
797
1,578
3,149
261
Investment activities
Fixed asset additions
(238)
(329)
(364)
(750)
(1,681)
(424)
(502)
(630)
(944)
(2,500)
(493)
Increase in investments, other assets and intangible assets
(64)
(80)
(125)
(186)
(455)
(101)
(96)
(176)
(189)
(562)
(125)
Net cash inflow (outflow) from disposal of facilities
1(c), 1(e)
6
-
-
-
6
(25)
-
(23)
-
(48)
4
Increase in public and private equity investments
(2)
(2)
(25)
-
(29)
-
(3)
(7)
(1)
(11)
(23)
Proceeds from disposition
23
40
41
20
124
19
44
32
27
122
87
Business combinations
-
-
-
(3)
(3)
-
(1,475)
-
(29)
(1,504)
(30)
Cash used for investment activities
(275)
(371)
(473)
(919)
(2,038)
(531)
(2,032)
(804)
(1,136)
(4,503)
(580)
Financing activities
Net issues (repayments) of debt
(328)
(31)
(10)
(22)
(391)
1,636
544
(135)
(119)
1,926
757
Common Shares issued on exercise of stock options
4
-
1
3
8
6
-
8
6
20
30
Repurchase of Common Shares
(383)
(212)
(180)
(5)
(780)
(9)
(2)
-
(2)
(13)
(3)
Tax withholdings on vesting of equity awards
(14)
(1)
-
-
(15)
(9)
(1)
-
(1)
(11)
(4)
Contributions to subsidiaries by non-controlling interests
-
5
-
-
5
-
-
-
11
11
-
Dividends paid to non-controlling interests
-
(12)
(10)
(24)
(46)
(7)
(24)
(18)
(25)
(74)
-
Dividends paid
(133)
(130)
(125)
(126)
(514)
(132)
(129)
(128)
(133)
(522)
(134)
Cash provided from (used for) financing activities
(854)
(381)
(324)
(174)
(1,733)
1,485
388
(273)
(263)
1,337
646
Effect of exchange rate changes on cash and cash equivalents
(3)
(1)
(3)
(31)
(38)
14
(51)
21
(3)
(19)
(8)
Net increase (decrease) in cash and cash equivalents, during the period
(952)
(332)
(562)
132
(1,714)
1,195
(1,148)
(259)
176
(36)
319
Cash and cash equivalents, beginning of period
2,948
1,996
1,664
1,102
2,948
1,234
2,429
1,281
1,022
1,234
1,198
Cash and cash equivalents, end of period
1,996
1,664
1,102
1,234
1,234
2,429
1,281
1,022
1,198
1,198
1,517
Page 3 of 7
FINANCIAL REVIEW OF MAGNA INTERNATIONAL INC.
(United States dollars in millions, except per share figures) (Unaudited)
This Analyst should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2023.
Note 1:
OTHER EXPENSE (INCOME), NET
Other expense (income), net consists of:
2022
2023
2024
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
Impairments and restructuring related to Fisker Inc. ["Fisker"]
[a]
-
-
-
-
-
-
-
-
-
-
316
Restructuring
[b]
-
-
-
22
22
118
(35)
(1)
66
148
38
Investment revaluations, (gains) losses on sales, and impairments
[c]
61
50
9
101
221
24
98
(19)
98
201
2
Impairments and loss on sale of operations in Russia
[d]
-
376
-
-
376
-
-
16
-
16
-
Veoneer AS transaction costs
[e]
-
-
-
-
-
-
23
-
-
23
-
Loss on sale of business
[f]
-
-
-
58
58
-
-
-
-
-
-
Impairments
[g]
-
-
14
12
26
-
-
-
-
-
-
61
426
23
193
703
142
86
(4)
164
388
356
[a]
Impairments and restructuring related to Fisker Inc. ["Fisker"]
Impairment of Fisker related assets:
During the first quarter of 2024, the Company recorded a $261 million impairment charge on its Fisker related assets as a result of the expected lack of future cashflows and the substantial doubt about Fisker's ability to continue as a going concern. The assets impaired include production receivables, inventory, fixed assets and other capitalized expenditures.
Impairment of Fisker warrants:
Fisker issued approximately 19.5 million penny warrants to the Company to purchase common stock in connection with our agreements with Fisker for platform sharing, engineering and manufacturing of the Fisker Ocean SUV. These warrants vested during 2021 and 2022 based on specified milestones and have been marked to market each quarter.
During the first quarter of 2024, Magna recorded a $33 million impairment charge on these warrants reducing the value of the warrants to nil.
Restructuring:
In the first quarter of 2024, the Company recorded restructuring charges of $22 million in its Complete Vehicles segment in connection with its Fisker related assembly operations.
[b]
Restructuring
Reversal of restructuring charges:
During the second quarter of 2023, the Company's Power & Vision segment reversed $39 million of charges due to a change in the restructuring plans related to a plant closure.
Sale of buildings as a result of restructuring activities:
During the second and third quarter of 2023, the Company's Power & Vision segment recorded a $10 million and $8 million gain on the sale of a building as a result of restructuring activities, respectively.
Other Restructuring:
2022
2023
2024
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
Complete Vehicles
-
-
-
-
-
-
-
-
-
-
26
Body Exteriors & Structures
-
-
-
-
-
13
9
-
9
31
12
Power & Vision
-
-
-
22
22
105
5
7
57
174
-
-
-
-
22
22
118
14
7
66
205
38
[c]
Investment revaluations, (gains) losses on sales, and impairments
The Company revalues its public and private equity investments and certain public company warrants every quarter. The gains and losses related to this revaluation, as well as gain and losses on disposition, are primarily recorded in Corporate. In the second quarter of 2023, the Company recorded a non-cash impairment charge of $85 million on a private equity investment and related long-term receivables within Other assets in its Corporate segment. In the fourth quarter of 2023, the Company also recorded a non-cash impairment charge of $5 million on a private equity investment in its Power & Vision segment.
[d]
Impairments and loss on sale of operations in Russia
As a result of the expected lack of future cashflows and the continuing uncertainties connected with the Russian economy, during the second quarter of 2022, the Company recorded a $376 million impairment charge related to its investment in Russia. This included net asset impairments of $173 million and a $203 million reserve against the related foreign currency translation losses that were included in accumulated other comprehensive loss. The net asset impairments consisted of $163 million and $10 million in our Body Exteriors & Structures and our Seating Systems segments, respectively.
During the third quarter of 2023, the Company completed the sale of all of its investments in Russia resulting in a loss of $16 million including a net cash outflow of $23 million.
[e]
Veoneer AS transaction costs
During 2023, the Company incurred $23 million of transaction costs related to the acquisition of the Veoneer Active Safety Business.
[f]
Loss on sale of business
During the fourth quarter of 2022, the Company entered into an agreement to sell a European Power & Vision operation. Under the terms of the arrangement, the Company was contractually obligated to provide the buyer with up to $42 million of funding, resulting in a loss of $58 million. During the first quarter of 2023, the Company completed the sale of this operation which resulted in a net cash outflow of $25 million.
[g]
Impairments
2022
2023
2024
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
Body Exteriors & Structures
-
-
10
12
22
-
-
-
-
-
-
Power & Vision
-
-
4
-
4
-
-
-
-
-
-
-
-
14
12
26
-
-
-
-
-
-
Page 4 of 7
Note 2:
NON-GAAP MEASURES
The Company presents Adjusted EBIT (Earnings before interest, taxes, Other expense (income),net and amortization of acquired intangible assets); Adjusted Net Income (Net Income before Other expense (income),net, net of tax excluding significant income tax valuation allowance adjustments, and amortization of acquired intangible assets); Adjusted Diluted Earnings per Share; Adjusted EBIT as a percentage of sales; Adjusted Return on Invested Capital and Adjusted Return on Equity. The Company presents these financial figures because such measures are widely used by analysts and investors in evaluating the operating performance of the Company. However, such measures do not have any standardized meaning under U.S. generally accepted accounting principles and may not be comparable to the calculation of similar measures by other companies. Adjusted EBIT, Adjusted Net Income and Adjusted diluted earnings per share presented in the tables below, including for the prior period, have been updated to reflect the revised calculation.
The following table reconciles Income (loss) from operations before income taxes to Adjusted EBIT:
2022
2023
2024
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
Income (loss) from operations before income taxes
420
(88)
400
146
878
275
483
538
310
1,606
34
Exclude:
Amortization of acquired intangible assets
12
12
11
11
46
12
13
32
31
88
28
Other expense (income), net
61
426
23
193
703
142
86
(4)
164
388
356
Interest expense
26
20
18
17
81
20
34
49
53
156
51
Adjusted EBIT
519
370
452
367
1,708
449
616
615
558
2,238
469
The following table show the calculation of Adjusted Return on Invested Capital:
2022
2023
2024
1st Q
2nd Q
3rd Q
4th Q
1st Q
2nd Q
3rd Q
4th Q
1st Q
Net income (loss)
379
(145)
296
111
217
354
417
298
26
Add (deduct):
Interest expense
26
20
18
17
20
34
49
53
51
Amortization of acquired intangible assets
12
12
11
11
12
13
32
31
28
Other expense (income), net
61
426
23
193
142
86
(4)
164
356
Tax effect on Interest expense, net, Amortization of acquired
intangible assets and Other expense, net
(19)
(34)
(11)
(32)
(38)
(4)
(14)
(46)
(93)
Adjustments to Deferred Tax Valuation Allowances
(29)
-
-
-
-
-
-
(47)
-
Adjusted After-tax operating profits
430
279
337
300
353
483
480
453
368
Total Assets
28,822
27,283
26,667
27,789
30,654
31,837
31,675
32,255
32,678
Excluding:
Cash and cash equivalents
(1,996)
(1,664)
(1,102)
(1,234)
(2,429)
(1,281)
(1,022)
(1,198)
(1,517)
Deferred tax assets
(464)
(491)
(488)
(491)
(506)
(535)
(527)
(621)
(753)
Less Current Liabilities
(10,440)
(9,816)
(9,878)
(10,998)
(12,045)
(13,358)
(13,165)
(13,234)
(13,566)
Excluding:
Short-term borrowing
-
-
-
8
4
150
2
511
838
Long-term debt due within one year
127
105
95
654
668
1,426
1,398
819
824
Current portion of operating lease liabilities
276
270
266
276
285
303
384
399
306
Invested Capital
16,325
15,687
15,560
16,004
16,631
18,542
18,745
18,931
18,810
Adjusted After-tax operating profits
430
279
337
300
353
483
480
453
368
Average Invested Capital
16,185
16,006
15,624
15,782
16,318
17,587
18,644
18,838
18,871
Adjusted Return on Invested Capital
10.6%
7.0%
8.6%
7.6%
8.7%
11.0%
10.3%
9.6%
7.8%
Page 5 of 7
Note 2:
NON-GAAP MEASURES (Continued)
The following table show the calculation of Adjusted Return on Equity:
2022
2023
2024
1st Q
2nd Q
3rd Q
4th Q
1st Q
2nd Q
3rd Q
4th Q
1st Q
Net income (loss) attributable to Magna International Inc.
364
(156)
289
95
209
339
394
271
9
Add (deduct):
Amortization of acquired intangible assets
12
12
11
11
12
13
32
31
28
Other expense (income), net
61
426
23
193
142
86
(4)
164
356
Tax effect on Amortization of acquired intangible assets
and Other expense, net
(15)
(29)
(6)
(29)
(34)
3
(3)
(36)
(82)
Adjustments to Deferred Tax Valuation Allowances
(29)
-
-
-
-
-
-
(47)
-
Adjusted Net income (loss) attributable to Magna International Inc.
393
253
317
270
329
441
419
383
311
Average Shareholder's Equity
11,599
11,692
11,095
11,091
11,412
11,573
11,704
12,015
12,101
Adjusted Return on Equity
13.6%
8.7%
11.4%
9.7%
11.5%
15.2%
14.3%
12.8%
10.3%
The following table reconciles Net income (loss) attributable to Magna International Inc. to Adjusted net income attributable to Magna International Inc.:
2022
2023
2024
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
Net income (loss) attributable to Magna International Inc.
364
(156)
289
95
592
209
339
394
271
1,213
9
Exclude:
Amortization of acquired intangible assets
10
10
9
9
38
10
11
25
25
71
22
Impairments and restructuring related to Fisker Inc. ["Fisker"]
-
-
-
-
-
-
-
-
-
-
247
Investment revaluations, (gains) losses on sales, and impairments
48
38
7
75
168
18
95
(14)
74
173
1
Restructuring
-
-
-
22
22
92
(26)
(2)
60
124
32
Impairments and loss on sale of operations in Russia
-
361
-
-
361
-
-
16
-
16
-
Veoneer AS transaction costs
-
-
-
-
-
-
22
-
-
22
-
Impairments
-
-
12
12
24
-
-
-
-
-
-
Net losses on the sale of business
-
-
-
57
57
-
-
-
-
-
-
Adjustments to Deferred Tax Valuation Allowance
[i]
(29)
-
-
-
(29)
-
-
-
(47)
(47)
-
-
Adjusted net income attributable to Magna International Inc.
393
253
317
270
1,233
329
441
419
383
1,572
311
The following table reconciles diluted earnings (loss) per common share to Adjusted diluted earnings per common share:
2022
2023
2024
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
Diluted earnings (loss) per common share
$ 1.22
$ (0.54)
$ 1.00
$ 0.33
$ 2.03
$ 0.73
$ 1.18
$ 1.37
$ 0.95
$ 4.23
$ 0.03
Exclude:
Amortization of acquired intangible assets
0.04
0.03
0.03
0.03
0.13
0.04
0.04
0.09
0.09
0.25
0.08
Impairments and restructuring related to Fisker Inc. ["Fisker"]
-
-
-
-
-
-
-
-
-
-
0.86
Investment revaluations, (gains) losses on sales, and impairments
0.16
0.13
0.03
0.26
0.58
0.07
0.33
(0.06)
0.25
0.60
-
Restructuring
-
-
-
0.08
0.08
0.31
(0.09)
-
0.20
0.43
0.11
Impairments and loss on sale of operations in Russia
-
1.24
-
-
1.24
-
-
0.06
-
0.06
-
Veoneer AS transaction costs
-
-
-
-
-
-
0.08
-
-
0.08
-
Impairments
-
-
0.04
0.04
0.08
-
-
-
-
-
-
Net losses on the sale of business
-
-
-
0.20
0.20
-
-
-
-
-
-
Adjustments to Deferred Tax Valuation Allowance
[i]
(0.10)
-
-
-
(0.10)
-
-
-
(0.16)
(0.16)
-
Adjusted diluted earnings per common share
$ 1.32
$ 0.87
$ 1.10
$ 0.94
$ 4.24
$ 1.15
$ 1.54
$ 1.46
$ 1.33
$ 5.49
$ 1.08
[i] Adjustments to Deferred Tax Valuation Allowance
The Company records quarterly adjustments to the valuation allowance against its deferred tax assets in continents like North America, Europe, Asia, and South America. The net effect of these adjustments is a reduction to income expense.
Page 6 of 7
Note 3:
SEGMENTED INFORMATION
2022
2023
2024
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
2nd Q
3rd Q
4th Q
TOTAL
1st Q
Body Exteriors & Structures
Sales
4,077
3,947
3,976
4,004
16,004
4,439
4,540
4,354
4,178
17,511
4,429
Adjusted EBIT
231
194
227
200
852
272
394
358
280
1,304
298
Adjusted EBIT as a percentage of sales
5.7%
4.9%
5.7%
5.0%
5.3%
6.1%
8.7%
8.2%
6.7%
7.4%
6.7%
Power & Vision
Sales
3,046
2,888
2,911
3,016
11,861
3,323
3,462
3,745
3,775
14,305
3,842
Adjusted EBIT
163
99
124
116
502
92
124
221
231
668
98
Adjusted EBIT as a percentage of sales
5.4%
3.4%
4.3%
3.8%
4.2%
2.8%
3.6%
5.9%
6.1%
4.7%
2.6%
Seating Systems
Sales
1,376
1,253
1,295
1,345
5,269
1,486
1,603
1,529
1,429
6,047
1,455
Adjusted EBIT
50
3
37
14
104
37
67
70
44
218
52
Adjusted EBIT as a percentage of sales
3.6%
0.2%
2.9%
1.0%
2.0%
2.5%
4.2%
4.6%
3.1%
3.6%
3.6%
Complete Vehicles
Sales
1,275
1,403
1,213
1,330
5,221
1,626
1,526
1,185
1,201
5,538
1,383
Adjusted EBIT
50
63
65
57
235
52
34
(5)
43
124
27
Adjusted EBIT as a percentage of sales
3.9%
4.5%
5.4%
4.3%
4.5%
3.2%
2.2%
-0.4%
3.6%
2.2%
2.0%
Corporate and other
Intercompany eliminations
(132)
(129)
(127)
(127)
(515)
(201)
(149)
(125)
(129)
(604)
(139)
Adjusted EBIT
25
11
(1)
(20)
15
(4)
(3)
(29)
(40)
(76)
(6)
Total
Sales
9,642
9,362
9,268
9,568
37,840
10,673
10,982
10,688
10,454
42,797
10,970
Adjusted EBIT
519
370
452
367
1,708
449
616
615
558
2,238
469
Adjusted EBIT as a percentage of sales
5.4%
4.0%
4.9%
3.8%
4.5%
4.2%
5.6%
5.8%
5.3%
5.2%
4.3%
Page 7 of 7
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Magna International Inc. published this content on
06 May 2024 and is solely responsible for the information contained therein. Distributed by
Public, unedited and unaltered, on
06 May 2024 10:26:44 UTC.
Magna International Inc. is a Canada-based global automotive supplier. The Company has complete vehicle engineering and contract manufacturing expertise, as well as product capabilities which include body, chassis, exterior, seating, powertrain, active driver assistance, electronics, mechatronics, mirrors, lighting, and roof systems. Its Veoneer Active Safety provides sensor, software and systems engineering solutions to a range of customers. The Company's segments include Body Exteriors & Structures; Power & Vision; Seating Systems; and Complete Vehicles. Its Body Exteriors & Structures include body structures, chassis structures, exterior, energy storage systems and other. Its Power & Vision products include electrified powertrain technologies, powertrain subsystems and other. Its Complete Vehicles consist of complete vehicle engineering and complete vehicle manufacturing. The Company's global network includes 341 manufacturing operations and 88 product development.