- Magna International (TSX:MG) has announced it’s COVID-19 response
- The company has pulled it’s 2020 outlook
- Magna has ceased production at several facilities
- Magna expects the slowdown to continue, as their manufacturing clients may not be able to complete orders
- Magna International (MG) is down 4 per cent at C$42.95 per share with a market cap of $13 billion
Magna International (TSX:MG) has announced they are pulling their 2020 outlook as their CEO claims we are living in “unprecedented times.”
The C$13 billion Ontario-based Magna has confirmed it will withdraw its 2020 outlook, as previous estimates now simply cannot be met.
The company has admitted many of its manufacturing clients are slowing down or halting production, and the company simply no longer has the demand it projected it would have.
Magna does not know how long the slowdown will be, and as a result believes it will need to scale down operations.
The company has already had several facilities reduce or suspend operations for COVID-19 related reasons.
Magna has stated that of its operations that are still open, they are running at a reduced capacity.
Further to this, the company has stated its operations in China have ramped back up.
While still significantly below the expected levels of activity, these green shoots show some sign of positivity.
Magna’s CEO, Don Walker, said these were unprecedented times we are now in.
“We remain focused on the health and safety of our employees and the communities in which Magna operates while continuing to support our customers around the world.
“We believe we are putting the appropriate plans in place to manage through these challenging times, while also focusing on opportunities that may further position Magna for the future,” he said.
The company has stated it is acquiring and supplying critical supplies and equipment for the communities it operates in.
Equipment such as masks and other medical PPE have been provided by the company to hospitals in the regions it operates.
Magna International Inc (MG) is down 4 per cent at $42.95 per share at 10:40 am EST.