Magna International reports drop in earnings as COVID-19 hits operations

Magna International reports drop in earnings as COVID-19 hits operations
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AURORA, Ont. — Magna International Inc. says its first quarter earnings were down significantly from last year as the company was hit by factory shutdowns across its global operations.

The autoparts maker, which reports in U.S. dollars, says it had a net income of $261 million, or 86 cents per diluted share for the quarter ending March 31, compared with net income of $1.1 billion or $3.39 per share a year earlier.

Revenue came in at $8.66 billion, down from $10.59 billion a year earlier.

The Aurora, Ont.-based company says its results were first hit by shutdowns in China in January followed by Europe and North America that altogether resulted in lost revenue of about $1.1 billion.

The company says auto production in China has generally resumed, while facilities in Europe are starting to return to production and factories in North America are preparing to restart in the next few weeks.

It says that because of the uncertainty it is still unable to assess the impact of the pandemic on its financial results for the year.

Companies in this story: (TSX:MG)

The Canadian Press

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