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MAGNA ANNOUNCES RECORD FIRST QUARTER RESULTS.

PR Newswire, London, May 18. This press release is transmitted on behalf of Magna International.

Aurora, Ontario -

Magna International Inc. (TSE: MG.A, MG.B; NYSE: MGA) today reported record sales, profits and earnings per share for the first quarter ended March 31, 2000.

 --------------------------------------------------------------------

 THREE MONTHS ENDED
 ------------------
 March 31 March 31
 2000 1999
 ---- ----
 Dlrs Dlrs
 Sales 2,702 2,271

 Net Income 146 104(1)

 Fully diluted earnings per share 1.55 1.17(1)

(1) Net income and fully diluted earnings per share have been restated
(previously Dlrs 109 million and Dlrs 1.22 respectively) due to an
accounting policy change relating to design and engineering and pre-
production
 start-up costs. For more information see note 2 to the
First Quarter
 Consolidated Financial Statements attached.

All results are reported in millions of U.S. dollars, except per share
 figures.
 -------------------------------------------------------------------



Sales for the first quarter ended March 31, 2000 were a record US Dollars 2.7 billion, an increase of approximately 19 per cent over the comparable period ended March 31, 1999. The higher sales level in the first quarter of 2000 reflects an 11 per cent and a 10 per cent increase in North American and European content per vehicle, respectively, over the comparable quarter, a period in which North American and European vehicle production increased approximately 7 per cent and 2 per cent respectively. Tooling and other sales increased by 23 per cent to Dlrs 263 million in the first quarter.

Net income for the first quarter increased 40 per cent to a record Dlrs 146 million compared to Dlrs 104 million in the comparable period in 1999. Fully diluted earnings per share also set a record for the Company at Dlrs 1.55 for the first quarter, representing an increase of 32 per cent over the comparable period.

During the first quarter of 2000, cash generated from operations before changes in working capital was Dlrs 269 million. Total investment activities during the quarter were Dlrs 124 million, including Dlrs 112 million in fixed assets and Dlrs 12 million in investments and other assets.

The Board of Directors declared a dividend of Dlrs 0.30 per share with respect to the outstanding Class A Subordinate Voting Shares and Class B Shares for the quarter ended March 31, 2000. The dividend is payable on June 15, 2000 to shareholders of record on May 31, 2000.

In addition, Magna and Decoma International Inc. ("Decoma") jointly announced today that they have entered into a non-binding letter of intent respecting the purchase by Decoma of Magna's European exterior parts operations ("MES") and Magna's existing majority interest in Decoma Exterior Trim Inc. This proposed acquisition by Decoma would solidify Decoma's position as a premier worldwide supplier of a full range of exterior automotive parts and components to the world's leading automotive manufacturers and is in keeping with Magna's previously stated objective of restructuring its operating groups along global product lines. For more information, see the Magna and Decoma joint press release, which was issued concurrently with this press release.

On March 10, 2000, Magna completed the previously announced transformation of MEC into a public company by distributing 20 per cent of MEC's equity to Magna's shareholders in the form of Class A Subordinate Voting Stock or Exchangeable Shares. The record date for the distribution of the special stock dividend was February 25, 2000. MEC is listed under the following trading symbols (TSE: Class A Subordinate Voting Stock -- "MIE.A"; TSE: Exchangeable Shares -- "MEH"; NASDAQ: Class A Subordinate Voting Stock -- "MIEC").

Magna, one of the most diversified automotive suppliers in the world, designs, develops and manufactures automotive systems, assemblies and components, and engineers and assembles complete vehicles, primarily for sale to original equipment manufacturers of cars and light trucks in North America, Europe, Mexico, South America and Asia. Magna's products include: exterior decorative systems; interior products including complete seats, instrument and door panel systems and sound insulation; stamped and welded metal parts and assemblies; sunroofs; electro-mechanical devices and assemblies and navigation systems; a variety of plastic parts, including body panels and fascias through Decoma International Inc.; various engine, powertrain and fuelling and cooling components through Tesma International Inc.; a variety of drivetrain components through Steyr Powertrain; and complete vehicle engineering and assembly through SteyrSymatec.

Magna has over 59,000 employees in 174 manufacturing operations and 33 product development and engineering centres in 19 countries.

Magna will hold a conference call to discuss the first quarter results on Friday March 19, 2000 at 10:30 a.m. EST. The number to use for this call is 1- 800-379-4140. Please call in 10 minutes prior to the conference call. The number for overseas callers is 1-416-641-6680. Magna will also webcast the conference call at www.magnaint.com. The conference call will be chaired by Graham Orr, Executive Vice-President, Corporate Development.
 MAGNA INTERNATIONAL INC.
 CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
 -------------------------------------------------------------------
 (Unaudited)
 (United States dollars in millions, except per share figures)
 -------------------------------------------------------------------
 Three months ended

 March 31, March 31,
 2000 1999
 -------------------------------------------------------------------
 (restated, see
 notes 2 and 3)

 Sales:
 Automotive 2,621 2,231
 Magna Entertainment Corp. 81 40
 -------------------------------------------------------------------
 2,702 2,271
 -------------------------------------------------------------------
 Automotive costs and expenses:
 Cost of goods sold 2,134 1,854
 Depreciation and amortization 94 80
 Selling, general and administrative 174 150
 Interest expense, net 7 2
 Equity income (5) (5)
 Magna Entertainment Corp. costs and expenses 60 24
 -------------------------------------------------------------------
 Operating income - automotive 217 150
 Operating income - Magna Entertainment Corp. 21 16
 -------------------------------------------------------------------
 Income before income taxes and minority interest 238 166
 Income taxes 85 57
 Minority interest 7 5
 -------------------------------------------------------------------
 Net Income 146 104
 -------------------------------------------------------------------
 -------------------------------------------------------------------

 Financing charges on Preferred Securities
 and other paid-in capital (11) (6)
 -------------------------------------------------------------------
 Net income available to Class A Subordinate
 Voting and Class B Shareholders 135 98
 Retained earnings, beginning of period 1,531 1,202
 Dividends on Class A Subordinate Voting
 and Class B Shares (24) (11)
 Special Magna Entertainment Corp. dividend (note 3) (111) -
 Cumulative adjustment for change
 in accounting policy (note 2) (85) (74)
 -------------------------------------------------------------------
 Retained earnings, end of period 1,446 1,215
 -------------------------------------------------------------------
 -------------------------------------------------------------------
 Earnings per Class A Subordinate Voting
 or Class B Share:
 Basic 1.71 1.25
 Fully diluted 1.55 1.17
 -------------------------------------------------------------------
 -------------------------------------------------------------------
 Cash dividends paid per Class A Subordinate Voting
 or Class B Share 0.30 0.22
 -------------------------------------------------------------------
 -------------------------------------------------------------------
 Average number of Class A Subordinate Voting and
 Class B Shares outstanding during the period
 (in millions):
 Basic 78.5 78.4
 Fully diluted 93.1 91.3
 -------------------------------------------------------------------
 -------------------------------------------------------------------




 MAGNA INTERNATIONAL INC.
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 -------------------------------------------------------------------
 (Unaudited)
 (United States dollars in millions)
 -------------------------------------------------------------------
 Three months ended

 March 31, March 31,
 2000 1999
 -------------------------------------------------------------------
 (restated,
 Cash provided from (used for) see note 2)

 OPERATING ACTIVITIES
 Net income 146 104
 Items not involving current cash flows 123 83
 -------------------------------------------------------------------
 269 187
 Changes in non-cash working capital (92) (74)
 -------------------------------------------------------------------
 177 113
 -------------------------------------------------------------------
 INVESTMENT ACTIVITIES
 Fixed asset additions (112) (212)
 Purchase of subsidiaries - (6)
 Increase in investments and other (12) -
 Proceeds from disposition of investments and other 21 41
 -------------------------------------------------------------------
 (103) (177)
 -------------------------------------------------------------------
 FINANCING ACTIVITIES
 Net issue (repayment) of debt (152) 72
 Issues of shares by subsidiaries 1 -
 Repayments of debentures' interest obligations (9) (7)
 Preferred Securities distributions (7) -
 Dividends paid to minority interests (1) (1)
 Dividends (24) (17)
 -------------------------------------------------------------------
 (192) 47
 -------------------------------------------------------------------
 Effect of exchange rate changes on cash
 and cash equivalents (10) (9)
 -------------------------------------------------------------------
 Net increase (decrease) in cash and
 cash equivalents during the period (128) (26)
 Cash and cash equivalents, beginning of period 632 484
 -------------------------------------------------------------------
 Cash and cash equivalents, end of period 504 458
 -------------------------------------------------------------------
 -------------------------------------------------------------------


 MAGNA INTERNATIONAL INC.
 CONSOLIDATED BALANCE SHEETS
 -------------------------------------------------------------------
 (Unaudited)
 (United States dollars in millions)
 -------------------------------------------------------------------
 March 31, December 31,
 2000 1999
 -------------------------------------------------------------------
 ASSETS
 -------------------------------------------------------------------
 (restated,
 Current assets: see note 2)
 Cash and cash equivalents 504 632
 Accounts receivable 1,826 1,584
 Inventories 662 672
 Prepaid expenses and other 51 46
 -------------------------------------------------------------------
 3,043 2,934
 -------------------------------------------------------------------
 Investments 98 89
 -------------------------------------------------------------------
 Fixed assets, net 3,436 3,498
 -------------------------------------------------------------------
 Goodwill, net 248 267
 -------------------------------------------------------------------
 Future tax assets 93 93
 -------------------------------------------------------------------
 Other assets 173 181
 -------------------------------------------------------------------
 7,091 7,062
 -------------------------------------------------------------------
 -------------------------------------------------------------------
 LIABILITIES AND SHAREHOLDERS' EQUITY
 -------------------------------------------------------------------
 Current liabilities:
 Bank indebtedness 194 339
 Accounts payable 1,571 1,391
 Accrued salaries and wages 207 202
 Other accrued liabilities 168 213
 Income taxes payable 46 56
 Long-term debt due within one year 49 70
 -------------------------------------------------------------------
 2,235 2,271
 -------------------------------------------------------------------
 Long-term debt 258 253
 -------------------------------------------------------------------
 Debentures' interest obligation 198 208
 -------------------------------------------------------------------
 Other long-term liabilities 84 85
 -------------------------------------------------------------------
 Future tax liabilities 181 188
 -------------------------------------------------------------------
 Minority interest 240 124
 -------------------------------------------------------------------
 Shareholders' equity:
 Capital stock issued and outstanding -
 Class A Subordinate Voting Shares
 (issued: 77,439,409; December 31,
 1999 - 77,438,465) 1,441 1,441
 Class B Shares
 (convertible into Class A Subordinate
 Voting Shares)
 (issued: 1,097,909; December 31,
 1999 - 1,097,909) 1 1
 Preferred Securities 277 277
 Other paid-in capital 700 689
 Retained earnings 1,446 1,446
 Currency translation adjustment 30 79
 -------------------------------------------------------------------
 3,895 3,933
 -------------------------------------------------------------------
 7,091 7,062
 -------------------------------------------------------------------
 -------------------------------------------------------------------

 Notes:
 1. In the opinion of management, the unaudited interim consolidated
 financial statements reflect all adjustments, which consist only of
 normal and recurring adjustments, necessary to present fairly the
 financial position at March 31, 2000 and the results of operations
 and cash flows for the three- month periods ended March 31, 2000 and
 1999.

 2. In September 1999, the United States Emerging Issues Task Force
 reached a consensus on accounting for pre-production costs related to
 long-term supply agreements. The consensus requires that design and
 development costs for products to be sold under long-term supply
 agreements should be expensed as incurred unless a contractual
 guarantee for reimbursement exists. The consensus also requires that
 design and development costs for moulds, dies and other tools that a
 supplier will not own and that will be used in producing the products
 under the long-term supply agreement should be expensed as incurred
 unless the supply arrangement provides the supplier the noncancelable
 right to use the moulds, dies and other tools during the supply
 arrangement. Canadian generally accepted accounting principles
 ("Canadian GAAP") do not explicitly address these

 types of costs.

 In addition, in April 1998, the American Institute of Certified
 Public Accountants issued new recommendations for the accounting for
 costs of start-up activities. These recommendations require costs of
 start-up activities to be expensed as incurred. Under Canadian GAAP,
 costs incurred in establishing new facilities which require
 substantial time to reach commercial production may be capitalised.

 In an effort to minimise future differences between Canadian GAAP and
 United States generally accepted accounting principles
 ("U.S. GAAP"),
 the Company previously disclosed that in the first quarter of 2000,
 it would adopt for Canadian reporting purposes, accounting policies,
 for each type of preproduction costs described above, that are
 consistent with the requirements under U.S. GAAP. Canadian GAAP
 requires retroactive restatement when a change in accounting policy
 is made. The most significant changes to the consolidated financial
 statements are as follows:

 Three months ended
 March 31,
 1999
 ----------------------------------------------------------------
 Increase in cost of sales 12
 Decrease in depreciation and amortisation (4)
 ----------------------------------------------------------------
 Decrease in operating income - automotive (8)
 Decrease in income taxes (3)
 ----------------------------------------------------------------
 Decrease in net income (5)
 ----------------------------------------------------------------
 ----------------------------------------------------------------
 Decrease in earnings per Class A Subordinate
 Voting or Class B Share:
 Basic (0.06)
 Fully diluted (0.05)
 ----------------------------------------------------------------
 ----------------------------------------------------------------
 December 31,
 1999
 ----------------------------------------------------------------
 Decrease in fixed assets (45)
 ----------------------------------------------------------------
 Decrease in other assets (91)
 ----------------------------------------------------------------
 Decrease in future tax liabilities (45)
 ----------------------------------------------------------------
 Decrease in retained earnings (85)
 ----------------------------------------------------------------
 Decrease in currency translation adjustment (6)
 ----------------------------------------------------------------

 3. On February 14, 2000, the Company declared a special stock
 dividend
 of approximately 20 per cent of Magna Entertainment
 Corp's ("MEC") equity to
 the Company's Class A Subordinate Voting and Class B
 shareholders of record on February 25, 2000 (the "special
 dividend"). On March 10,
 2000, the special dividend was
 paid.

 In connection with the special dividend, on March 17, 2000, the
 holders' conversion prices with respect to the
 Company's 4.875 per cent and
 5 per cent convertible
 subordinated debentures were adjusted to Dlrs 74.27 and

 Dlrs 53.04, respectively.

 The comparative MEC sales, costs and expenses have been
 adjusted from
 those previously reported. The adjustments were
 necessary to reflect
 the final structure of MEC and do not
 impact Magna's consolidated net
 income.

 4. The following table presents the maximum number of Class A
 Subordinate Voting and Class B Shares that would be outstanding
 if
all dilutive instruments outstanding at March 31, 2000 were
 exercised:

 ----------------------------------------------------------------
 Class A Subordinate Voting and Class B Shares
 outstanding at March 31, 2000 78.5
 5 per cent convertible subordinated debentures
 (based on holders' conversion option) 6.5
 4.875 per cent convertible subordinated debentures
 (based on holders' conversion option) 6.5
 Stock options 1.8
 ----------------------------------------------------------------
 93.3
 ----------------------------------------------------------------
 ----------------------------------------------------------------

 The above amounts exclude Class A Subordinate Voting Shares
 issuable,
 at the Company's option, to settle the 7.08
 per cent subordinated
 debentures
 and Preferred Securities on redemption or maturity.

5. The Company's segmented results of operations are as follows:

 Three months ended Three months ended
 March 31, 2000 March 31, 1999
 ------------------------------------ ---------------------------
 Total Operating Fixed Total Operating Fixed
 sales income assets, sales income assets,
 (loss) net (loss) net
 ------------------------------------ ---------------------------
 Tier 0.5(TM)
 Vehicle and
 Systems
 Integration
 Europe 284 18 169 245 6 357
 North America 4 (7) 5 - (2) -

 Tier One and Two
 Automotive
 Manufacturing
 North America 1,324 110 989 1,114 91 824
 Europe 542 11 453 498 2 386

 Publicly Traded
 Tier One and Two
 Automotive
 Manufacturing
 North America 460 53 492 361 26 464
 Europe 39 2 61 40 3 38
 MEC 81 21 570 40 16 328
 Corporate
 and other (32) 30 697 (27) 24 558
 ------------------------------------ ---------------------------
 Total reportable
 segments 2,702 238 3,436 2,271 166 2,955
 Current assets 3,043 2,686
 Investments,
 goodwill and
 other assets 612 565
 ------------------------------------ ---------------------------
 Consolidated total assets 7,091 6,206
 ------------------------------------ ---------------------------
 ------------------------------------ ---------------------------
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