Telford car parts factory owner delivers £7bn first quarter sales
Car parts giant Magna International, which owns Stadco and is building a huge new castings factory in Telford, has delivered a five per cent jump in first quarter revenues.
Sales clocked in at US $9.3 billion (£7.2 billion) in the three months to March 31, which grew faster than the car markets which provide the Canadian company's customers.
Adjusted earnings before interest came in 19 per cent higher at $831 million (£645 million). Earnings – or profit – per share hit a new record level of $1.53 (£1.19) – 25 per cent up on the year before.
The strong results present good news for the company, and come as it begins to install new machinery at its massive new plant at Telford's T54 business park.
Last month it installed a huge new piece of die casting machinery to the factory, which has emerged on the landscape in the east of the town in recent months.
The plant will make castings for Jaguar Land Rover, and adds to the company's presence in Shropshire, where it also owns long-standing county pressings company Stadco.
"We delivered another very strong quarter, with continued production sales growth above vehicle production, all segments posting higher margins, and all-time record earnings per share," said chief executive Don Walker.
"Overall, the first quarter was a great start to the year for the company and our shareholders.”
The growth was achieved despite North American light vehicle production declining by one per cent and European light vehicle production increasing by only two per cent on the same quarter last year.
Magna's own vehicle assembly sales decreased by 31 per cent, mainly because of the end of production of the MINI Countryman and Paceman in 2016, which was partially offset by the start of production of the BMW 5-Series in Austria.
