Magna's Quarterly Results Fall Short Due to Fewer Vehicle Assemblies
ECONOMY & POLICY

Magna's Quarterly Results Fall Short Due to Fewer Vehicle Assemblies

Auto parts supplier Magna International missed analysts' estimates for its second-quarter results, primarily due to halted production for certain vehicles and decreased volumes of assembled automobiles. Magna, which serves clients such as BMW, Mazda, and Ferrari, is involved in both parts production and complete vehicle assembly for various automakers.

Magna reported that sales were adversely affected by the cessation of production for specific programs, including the BMW 5-Series, and by reduced volumes of complete vehicle assembly. As a result, quarterly sales at its complete vehicle manufacturing unit fell by 18.6 per cent to $ 1.24 billion.

In contrast, Aptiv, a competitor, exceeded Wall Street's profit expectations on Thursday. However, its revenue from the segment producing electrical components decreased by 3 per cent due to reduced production by some of its customers.

In May, Magna faced asset impairments and restructuring costs totalling $ 316 million related to the struggling EV startup Fisker. Consequently, the Ontario-based company revised its 2026 sales forecast downward to a range of $ 44.0 billion to $ 46.5 billion, from the previous estimate of $ 48.8 billion to $ 51.2 billion.

For the second quarter ending in June, Magna reported adjusted earnings of $ 1.35 per share, falling short of the estimated $ 1.44 according to LSEG data. The company's quarterly revenue declined slightly to $ 10.96 billion, whereas analysts had anticipated around $ 11 billion.

Auto parts supplier Magna International missed analysts' estimates for its second-quarter results, primarily due to halted production for certain vehicles and decreased volumes of assembled automobiles. Magna, which serves clients such as BMW, Mazda, and Ferrari, is involved in both parts production and complete vehicle assembly for various automakers. Magna reported that sales were adversely affected by the cessation of production for specific programs, including the BMW 5-Series, and by reduced volumes of complete vehicle assembly. As a result, quarterly sales at its complete vehicle manufacturing unit fell by 18.6 per cent to $ 1.24 billion. In contrast, Aptiv, a competitor, exceeded Wall Street's profit expectations on Thursday. However, its revenue from the segment producing electrical components decreased by 3 per cent due to reduced production by some of its customers. In May, Magna faced asset impairments and restructuring costs totalling $ 316 million related to the struggling EV startup Fisker. Consequently, the Ontario-based company revised its 2026 sales forecast downward to a range of $ 44.0 billion to $ 46.5 billion, from the previous estimate of $ 48.8 billion to $ 51.2 billion. For the second quarter ending in June, Magna reported adjusted earnings of $ 1.35 per share, falling short of the estimated $ 1.44 according to LSEG data. The company's quarterly revenue declined slightly to $ 10.96 billion, whereas analysts had anticipated around $ 11 billion.

Next Story
Infrastructure Energy

Digital Economy, Renewable Energy to Boost Job Creation: Economic Survey

The Economic Survey 2024-25, presented by Union Finance Minister Nirmala Sitharaman, indicates substantial improvement in India’s labour market, driven by strong post-pandemic recovery and formalisation of the workforce. Key findings include a significant drop in the unemployment rate from 6 per cent in 2017-18 to 3.2 per cent in 2023-24. Additionally, there has been notable growth in female labour force participation, which increased from 23.3 per cent in 2017-18 to 41.7 per cent in 2023-24.Other highlights include:Over 30.51 crore unorganised workers registered on the eShram portal, suppor..

Next Story
Real Estate

Aditya Birla Housing Finance Secures Rs 8.3 Billion from IFC

Aditya Birla Housing Finance Ltd. (ABHFL), a subsidiary of Aditya Birla Capital, has raised Rs 8.3 billion through non-convertible debentures (NCDs) from the International Finance Corporation (IFC). The company stated that the funds will be used to provide housing loans to low- and middle-income groups (LIG and MIG), with a special focus on promoting homeownership among women. Additionally, a portion of the investment will support MSMEs, particularly women-led enterprises, to drive economic growth. The initiative aims to strengthen financial inclusion and uplift underserved communities in the ..

Next Story
Infrastructure Energy

Bihar to Bid Out 2,400 MW Power Plant by March

The Bihar government plans to auction the proposed 2,400 MW coal-based power plant at Pirpainti by March 2025. Part of the state's FY25 budget initiatives, the project is valued at Rs 214 billion, covering multiple power sector developments. Coal for the plant is expected to come from Eastern Coalfields, with fuel and location already determined to streamline the bidding process. Discussions are underway to finalise coal supply under the SHAKTI scheme, with a resolution expected by February. The Central government has also pledged support for fast-tracking environmental clearances to facilit..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000