Magna International profit dips 27% in Q2 CY2019 to $452 million

Magna International posted a consolidated sales of $10.13 billion (Rs 71,416 crore) in Q2 CY2019, which came out to be a YoY decrease of 1 percent from 2018. Net income attributable to Magna International was $452 million (Rs 3,187 crore) for the second quarter of 2019 compared to $626 million (Rs 4,413 crore) in the second quarter of 2018. 

In a statement, Magna has declared that the second quarter was driven by its body exteriors and structures, power and vision and complete vehicles segments. It also revealed that the seating segment performed below their expectations due to continued launch costs and inefficiencies at the new facility.

For the six months ended June 30, 2019, Magna International sales revenue came to $20.72 billion (Rs 146,076 crore), a YoY decrease of 2 percent in comparison to 2018. Magna claims that excluding the impact of foreign currency translation and divestitures net of acquisitions, sales increased 4 percent and by segment: Complete Vehicles increased 36 percent, Seating increased 3 percent, Power & Vision was unchanged and Body Exteriors & Structures decreased 4 percent; in each case compared to the six months ended June 30, 2018. 

Don Walker, CEO, Magna International, said, “Second quarter results came in slightly ahead of our expectations and our sales once again outpaced global vehicle production. We have been taking steps to optimise our business in response to lower industry volumes. Our 2019 outlook is largely unchanged despite our expectation of continued challenging automotive market conditions.”