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Be the first with the news that moves the market- Automotive manufacturer, Magna International Inc. (TSX:MG) has reported poor sales from the previous quarter
- Sales dropped by more than a billion dollars to C$9.3 billion
- As a result, net income across the whole year was down 3.5 per cent to C$581 million
- This was largely due to a General Motors strike last September, which adversely affected the company’s performance
- Magna International Inc (TSX:MG) was down 2.48 per cent, with shares currently trading for C$67.90.
Automotive manufacturer, Magna International Inc. (TSX:MG) is among the growing list of company’s reporting poor performance in the previous quarter.
Sales dropped by to C$9.3 billion, which is more than a billion dollars less than the same quarter in 2018.
Net income was also down 3.5 per cent to C$581 million.
The company’s earnings were particularly marred by a 40-day strike at General Motors in September.
Despite these figures, Don Walker, Magna’s CEO, remains confidant about Magna’s future.
“2019 was a challenging year on a number of fronts, however we continued to make significant investments in new technologies to support customer plans to produce lighter, safer, and cleaner vehicles,” he said.
Magna’a 2020 outlook predicts total sales around C$52 billion, remaining steady
However, Magna’s has not adjusted this outlook to reflect the probable impact of the coronavirus.
The company claims it is difficult to know when its customers’ facilities in China will re-open, or how much this disruption will affect the company long term.
The full economic impact of the virus is yet unknown and the company has chosen to not speculating before its extent is better understood.
The company also announced its increasing its quarterly cash dividend by 10 per cent to $0.40 per share.
Magna International Inc (TSX:MG) was down 2.48 per cent, with shares currently trading for C$67.90.
