• ITVI.USA
    13,795.070
    81.410
    0.6%
  • OTRI.USA
    26.560
    -0.120
    -0.4%
  • OTVI.USA
    13,740.380
    64.000
    0.5%
  • TLT.USA
    2.720
    -0.060
    -2.2%
  • TSTOPVRPM.ATLPHL
    2.670
    0.130
    5.1%
  • TSTOPVRPM.CHIATL
    2.930
    0.280
    10.6%
  • TSTOPVRPM.DALLAX
    1.320
    -0.020
    -1.5%
  • TSTOPVRPM.LAXDAL
    3.040
    0.050
    1.7%
  • TSTOPVRPM.PHLCHI
    1.740
    0.050
    3%
  • TSTOPVRPM.LAXSEA
    3.210
    0.000
    0%
  • WAIT.USA
    108.000
    5.000
    4.9%
  • ITVI.USA
    13,795.070
    81.410
    0.6%
  • OTRI.USA
    26.560
    -0.120
    -0.4%
  • OTVI.USA
    13,740.380
    64.000
    0.5%
  • TLT.USA
    2.720
    -0.060
    -2.2%
  • TSTOPVRPM.ATLPHL
    2.670
    0.130
    5.1%
  • TSTOPVRPM.CHIATL
    2.930
    0.280
    10.6%
  • TSTOPVRPM.DALLAX
    1.320
    -0.020
    -1.5%
  • TSTOPVRPM.LAXDAL
    3.040
    0.050
    1.7%
  • TSTOPVRPM.PHLCHI
    1.740
    0.050
    3%
  • TSTOPVRPM.LAXSEA
    3.210
    0.000
    0%
  • WAIT.USA
    108.000
    5.000
    4.9%
News

Magna posts record sales as CEO bemoans tariffs

Canadian auto and truck parts maker Magna International (NYSE: MGA) reported a better than expected profit on Friday, February 22, but its CEO noted that the Trump administration’s tariffs were hurting the company’s U.S. plants.

Magna generated a $456 million profit in the fourth quarter of 2018, an 18 percent decline compared to $559 million a year earlier, weighed down by large investments in electric and autonomous vehicle research and development and declines in China. Meanwhile, sales grew by 5 percent to a record $10.1 billion, as the company’s completed-vehicles business surged by 39 percent.

The earnings of $1.63 per share were slightly better than the $1.60 expected by analysts. The company also increased its dividend by 11 percent to $0.365 from $0.33

“Despite some headwinds, we are positioned for another good year,” CEO Donald Walker told analysts in a conference call.

Walker expressed frustration at the Trump administration’s tariffs against Canadian and Chinese steel, since Magna operates 58 manufacturing facilities in the United States.

“Tariffs continue to hurt us,” Walker said. “They’re mainly hurting our U.S. plants.”

Magna expects the tariffs will cost it $45 to 50 million in 2019.

He characterized Magna’s results as strong in the face of a global decline in light vehicle production, particularly in China.

The launch of the Jaguar I-Pace, which Magna produces in Graz, Austria, fueled the growth in the Completed Vehicle segment. It will continue to grow outside parts manufacturing with the forthcoming production of the Toyota GR Supra.

Magna’s largest segment, Body Exterior and Structures, declined by 4 percent.

Nate Tabak, Border and North America Correspondent

Nate Tabak is a Toronto-based journalist who covers cross-border trucking, logistics and trade for FreightWaves. Before moving to Canada, 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.
Close