Printer Friendly

MAGNA INTERNATIONAL INC. ANNOUNCES RESULTS

 MARKHAM, Ont., March 3 /PRNewswire/ -- Magna International Inc. (NYSE: MGA) today announced results for the second quarter of fiscal 1993. Net income improved to $24.7 million in the second quarter compared to $10.7 million in the comparable period in fiscal 1992 and to $56.4 million year to date compared to $36.2 million for the same period in fiscal 1992. Fully diluted earnings per share increased approximately 77 per cent to $0.46 per share for the second quarter compared to $0.26 per share for the second quarter of the prior year. Year to date fully diluted earnings per share were $1.05, a 25 per cent increase over fully diluted earnings per share of $0.84 achieved during the first six months of fiscal 1992. All results are reported in millions of Canadian dollars, except per share figures.
 MAGNA INTERNATIONAL, INC.
 Periods ended Jan. 31 Six Months ended Three Months Ended
 1993 1992 1993 1992
 Sales $1,215.7 $1,101.6 $600.2 $484.4
 Income before income
 taxes and minority
 interest $ 88.0 $ 62.0 $ 38.0 $ 18.7
 Net income $ 56.4 $ 36.2 $ 24.7 $ 10.7
 Fully diluted earnings
 per share $ 1.05 $ 0.84 $ 0.46 $ 0.26
 Sales have increased 23.9 per cent to $600.2 million during the second quarter as compared to the $484.4 million during the second quarter of the prior year. Sales for the first six months totalled $1,215.7 million, a 10.4 per cent improvement over the $1,101.6 million of sales achieved during the comparable period of the prior year. These sales increases are primarily a result of increased North American vehicle production over the same periods. North American vehicle production has increased 16 per cent during the current quarter to 2.9 million units and 7 per cent year to date to 5.9 million units as compared to the same periods in the prior year.
 Operating income improved to $38 million for the quarter compared to $18.7 million in the second quarter of 1992 and to $88 million year to date compared to $62 million for the comparable period in the prior year.
 These improved results have been achieved primarily due to increased sales, lower interest expense and improved operating results from joint ventures. These improvements were partially offset by increased selling, general and administrative expenses and continued pressure on gross margins. The decline in gross margins in the second quarter, compared to the second quarter of 1992, reflects costs relating to major new programs associated with a new customer vehicle, increased customer pricing pressures and start-up costs associated with a new operating facility.
 Management anticipates that North American vehicle production will continue to strengthen and that fiscal 1993 levels will exceed 1992 levels by approximately 5 per cent to 8 per cent. This expected increase in vehicle production, together with improved operating efficiencies should result in continued improvement in profits and shareholder value.
 The board of directors today declared a dividend of $0.15 per share with respect to the Class A Subordinate Voting shares and Class B shares for the quarter ended Jan. 31, 1993 payable on April 15, 1993 to shareholders of record on March 31, 1993.
 MAGNA INTERNATIONAL INC.
 Consolidated Statements of Income
 (Canadian dollars in million, except per share figures, unaudited)
 Periods ended Jan. 31 Six Months Three Months
 1993 1992 1993 1992
 Sales $1,215.7 $1,101.6 $600.2 $484.4
 Cost of goods sold 986.4 877.5 491.8 387.5
 Depreciation and
 amortization 51.8 51.3 26.2 25.6
 Selling, general and
 administrative 84.6 75.4 41.3 35.2
 Interest 11.2 30.2 5.8 13.6
 Equity (income) loss (6.3) 5.2 (2.9) 3.8
 Income before the
 following 88.0 62.0 38.0 18.7
 Income taxes 23.0 19.0 9.1 5.0
 Minority interest 8.6 6.8 4.2 3.0
 Net income for the
 period $ 56.4 $ 36.2 $ 24.7 $ 10.7
 Earnings per Class A
 Subordinate Voting or
 Class B share:
 Basic $ 1.33 $ 1.21 $ 0.57 $ 0.33
 Fully diluted $ 1.05 $ 0.84 $ 0.46 $ 0.26
 MAGNA INTERNATIONAL INC.
 Consolidated Statements of Cash Flows
 (Canadian dollars in millions, unaudited)
 Periods ended Jan. 31 Six Months Three Months
 1993 1992 1993 1992
 Cash provided from (used for):
 Operating activities -
 Net income $ 56.4 $ 36.2 24.7 10.7
 Items not involving
 current cash flows 60.3 74.6 31.0 35.0
 Changes in non-cash
 working capital (71.0) (73.9) (21.9) 22.0
 Total 45.7 36.9 33.8 67.7
 Investment activities -
 Fixed asset additions (22.0) (11.6) (12.9) (6.2)
 Net change in investments
 and other (33.3) (7.6) (31.1) (9.0)
 Proceeds from disposition
 of fixed assets and other 3.8 14.0 1.7 6.5
 Total (51.5) (5.2) (42.3) (8.7)
 Financing activities -
 Net change in debt 2.5 (143.9) 21.6 (135.2)
 Issue of Class A
 Subordinate Voting shares 35.3 96.5 7.8 96.5
 Conversion of convertible
 bonds and debentures (25.2) -- (4.5) --
 Redemption of special share
 purchase warrant -- (20.0) -- --
 Dividends paid to (net of
 capital contribution by)
 minority interests (4.2) (1.5) (0.6) (1.1)
 Dividends (10.7) -- (6.5) --
 Total (2.3) (68.9) 17.8 (39.8)
 Net increase (decrease) in
 cash during the period (8.1) (37.2) 9.3 19.2
 Cash, beginning of period 51.6 60.3 34.2 3.9
 Cash, end of period $ 43.5 $ 23.1 $ 43.5 $ 23.1
 MAGNA INTERNATIONAL INC.
 Consolidated Balance Sheets
 (Canadian dollars in millions, unaudited)
 January 31 July 31
 1993 1992
 Assets
 Current assets:
 Cash $ 43.5 $ 51.6
 Accounts receivable 356.5 255.7
 Inventories 203.7 172.3
 Prepaid expenses 23.2 20.6
 Total 626.9 500.2
 Investments 91.0 80.3
 Fixed assets (net) 745.4 751.7
 Goodwill 19.6 17.8
 Other assets 59.8 51.4
 Total Assets $1,542.7 $1,401.4
 Liabilities and shareholders' equity
 Current liabilities:
 Bank indebtedness $ 60.6 $ 70.4
 Accounts payable and
 accrued liabilities 378.2 327.4
 Long-term debt due within one year 7.2 9.3
 Total 446.0 407.1
 Long-term debt 107.0 80.5
 Convertible subordinated
 bonds and debentures 141.9 165.2
 Deferred gains 3.6 6.2
 Deferred income taxes 80.5 81.9
 Minority interest 77.0 70.2
 Shareholders' equity:
 Capital stock -
 Class A Subordinate Voting shares 580.1 544.6
 Class B shares 1.3 1.5
 Retained earnings 94.6 48.9
 Currency translation adjustment 10.7 (4.7)
 Total 686.7 590.3
 Total liabilities and shareholders'
 equity $1,542.7 $1,401.4
 -0- 3/3/93
 /CONTACT: Graham Orr, senior vice-president, corporate development and investor relations of Magna International, 416-477-7766/
 (MGA)


CO: Magna International, Inc. ST: Ontario IN: AUT SU: ERN

TM -- NY086 -- 2702 03/03/93 19:10 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 3, 1993
Words:1198
Previous Article:NCH CORPORATION REPORTS NINE MONTHS SALES AND EARNINGS
Next Article:MSA ELECTS JOSEPH L. CALIHAN TO BOARD


Related Articles
MAGNA INTERNATIONAL ANNOUNCES ESTABLISHMENT OF CREDIT FACILITY
Magna Announces Completion of the Merger With Douglas & Lomason
Magna Announces Management Changes.
Joint Press Release - Tesma Privatization Completed.
Decoma Privatization Completed.
Joint press release - Tesma privatization completed.
Magna announces management changes.
Decoma privatization completed.
Magna Steyr's Graz Facility Honored With J.D. Power Gold Plant Quality Award - an Industry First for a Supplier.
Magna Steyr's Graz Facility Honored With J.D. Power Gold Plant Quality Award - an Industry First for a Supplier.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters