Magna misses profit estimates
Magna International, the Canadian car parts giant which has a factory in Telford, lowered its 2019 profit forecast.
Magna said it expects net income attributable to the company to be between £1.4 billion and £1.6 billion this year, lower than an earlier estimate of £1.6 billion to £1.7 billion.
The on-going tariff war between the United States and China has hurt Magna, one of North America’s biggest auto parts maker, as the sector grapples with higher metal prices after the Trump administration imposed tariffs on steel and aluminium imports last year, triggering retaliation.
The company also reported 2019 light vehicle production of 16.7 million units in North America, lower than its earlier forecast of 17 million units.
The company missed analysts’ estimates for first-quarter profit, as sales in its biggest segment, which makes structural backbone of vehicles, fell from £3.5 billion to £3.3 billion.
Net income attributable to Magna rose to £845 million in the first quarter ended March 31, from £507 million a year earlier.
However, total sales fell nearly two per cent to £8 billion, missing analysts’ estimates of £8.2 billion per cent.
