AURORA, Ont. — Magna International Inc. cut its outlook for the year as it lowered its expectations for auto production and reported sales in its latest quarter fell compared with a year ago.
The auto parts company, which reports in U.S. dollars, says it now expects a profit this year between US$1.9 billion and $2.1 billion, compared with earlier expectations for between $2.1 billion and $2.3 billion.
Sales are expected to total between $39.1 billion and $41.3 billion, down from an earlier forecast for between $40.2 and billion and $42.4 billion
The reduction came as Magna says it now expects light vehicle production in North America to total 16.7 million and Europe to produce 21.5 million vehicles, down from an earlier forecast of 17 million in North America and 22.3 million in Europe.
Magna reported a first-quarter profit of nearly $1.11 billion or $3.39 per diluted share, boosted by the sale of its fluid pressure and controls business and an unrealized gain on a revaluation on its investment in the ride-hailing company Lyft. Magna earned $660 million or $1.83 per diluted share in the first quarter of 2018.
On an adjusted basis, the company says it earned $1.63 per diluted share, down from $1.84 per diluted share in the same quarter last year.
Sales in the quarter totalled $10.59 billion, down from $10.79 billion a year earlier.
Companies in this story: (TSX:MG)
The Canadian Press