• ITVI.USA
    15,415.310
    54.710
    0.4%
  • OTLT.USA
    2.761
    -0.007
    -0.3%
  • OTRI.USA
    21.110
    -0.300
    -1.4%
  • OTVI.USA
    15,387.520
    55.710
    0.4%
  • TSTOPVRPM.ATLPHL
    3.300
    0.000
    0%
  • TSTOPVRPM.CHIATL
    3.140
    0.190
    6.4%
  • TSTOPVRPM.DALLAX
    1.590
    0.150
    10.4%
  • TSTOPVRPM.LAXDAL
    3.330
    0.020
    0.6%
  • TSTOPVRPM.PHLCHI
    2.170
    0.020
    0.9%
  • TSTOPVRPM.LAXSEA
    4.080
    0.130
    3.3%
  • WAIT.USA
    125.000
    -1.000
    -0.8%
  • ITVI.USA
    15,415.310
    54.710
    0.4%
  • OTLT.USA
    2.761
    -0.007
    -0.3%
  • OTRI.USA
    21.110
    -0.300
    -1.4%
  • OTVI.USA
    15,387.520
    55.710
    0.4%
  • TSTOPVRPM.ATLPHL
    3.300
    0.000
    0%
  • TSTOPVRPM.CHIATL
    3.140
    0.190
    6.4%
  • TSTOPVRPM.DALLAX
    1.590
    0.150
    10.4%
  • TSTOPVRPM.LAXDAL
    3.330
    0.020
    0.6%
  • TSTOPVRPM.PHLCHI
    2.170
    0.020
    0.9%
  • TSTOPVRPM.LAXSEA
    4.080
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    3.3%
  • WAIT.USA
    125.000
    -1.000
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BusinessCanadaCompany earningsFinanceNews

Magna beats expectations in fourth quarter, but coronavirus risks loom

Higher margins from completed vehicles help offset hit from GM strike as Canadian auto manufacturer warns of potential impact of coronavirus.

Magna International (TSE:MGA) reported a better-than-expected fourth-quarter profit Friday despite headwinds from the General Motors strike, but the company also warned of potential fallout from the coronavirus outbreak.

Magna had net income of $440 million, or an adjusted $1.41 per share, on $9.4 billion in sales. The results handily beat analysts’ expectations of $1.32 per share, according to Barchart.

Nevertheless, Magna had a weaker fourth quarter than in 2018. Sales fell by 7% while net income declined by 3.5% in the fourth quarter of 2019 compared to a year earlier.

Declines in light vehicle sales of 7% in the U.S. and 3% in Europe hit Magna during the quarter.

The company said the 40-day strike by United Auto Workers members at General Motors plants in the U.S. in September and October helped bring down U.S. sales.

Higher margins in Magna’s completed vehicles segment helped offset the declines.

Magna also warned that the coronavirus outbreak could impact auto production volumes. The company has not revised its 2020 earnings outlook, saying that effects on customers’ factories in China were difficult to gauge.

Magna also reported selling $221 million of Lyft (NASDAQ:LYFT) stock during the quarter, realizing gains of $10 million. The company announced in January the end of its partnership with the U.S. ride-sharing company on the joint development of autonomous vehicle technology.

Nate Tabak, Border and North America Correspondent

Nate Tabak is a Toronto-based journalist and producer who covers cybersecurity and cross-border trucking and logistics for FreightWaves. He spent seven years reporting stories in the Balkans and Eastern Europe as a reporter, producer and editor based in Kosovo. He previously worked at newspapers in the San Francisco Bay Area, including the San Jose Mercury News. He graduated from UC Berkeley, where he studied the history of American policing. Contact Nate at ntabak@freightwaves.com.

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