Printer Friendly

MAGNA INTERNATIONAL INC. REPORTS RESULTS

 MAGNA INTERNATIONAL INC. REPORTS RESULTS
 MARKHAM, Ontario, Sept. 14 /PRNewswire/ - Magna International Inc.


(TSE: MG.A, MG.B; ME: MG.A; NASDAQ: MAGAF) today announced results for the year ended July 31, 1992. Sales for the fourth quarter were $625 million, bringing total year sales to $2,359 million, a record sales level and 17 per cent above the prior year's level. The 17 per cent increase in sales primarily resulted from an increase of approximately 6.5 per cent in North American vehicle production, an increase in Magna's average production content per vehicle of 9.5 per cent and higher tooling sales over the prior year. All results are reported in Canadian dollars.
 MAGNA INTERNATIONAL INC.
 Period ended Year Ended Three Months Ended
 July 31 1992 1991 1992 1991
 Sales (millions) $2,358.8 $2,017.2 $625.0 $538.6
 Income before income
 taxes and minority
 interest (millions) $ 164.8 $ 50.2 $ 51.5 $ 24.9
 Net income (millions) $ 98.0 $ 16.5 $ 31.3 $ 11.6
 Fully diluted earnings
 per share $ 2.08 $ 0.58 $ 0.61 $ 0.31
 The increased sales together with increased operating efficiencies, higher capacity utilization and reduced interest expense all contributed to higher operating income for the year. Pre-tax operating income increased to $51.5 million for the fourth quarter and $164.8 million for the year in fiscal 1992 compared to $24.9 million for the fourth quarter and $50.2 million for the year in fiscal 1991.
 On a fully diluted basis, net income per share was $0.61 for the fourth quarter and $2.08 for the year in fiscal 1992 compared to $0.31 for the fourth quarter and $0.58 for the year in fiscal 1991. In addition to improvements in operating income, earnings per share improvements also include the positive effect of a lower effective income tax rate of approximately 30 per cent during fiscal 1992 compared to an effective income tax rate of approximately 54 per cent for the prior year. The company expects to continue to have a tax rate lower than the expected statutory rate of 38 per cent for fiscal 1993.
 Total debt, net of cash, amounted to $273.8 million as at July 31, 1992 compared to $696.6 million at the end of the prior year. Total debt includes $165 million of convertible debt, which management anticipates will be converted to equity on or before the relevant maturity dates. Magna now has a strong financial position to support future growth.
 Management anticipates that North American vehicle production for fiscal 1993 will exceed 1992 levels by approximately 5 per cent to 10 per cent. This modest recovery, together with increased operating efficiencies, should continue to improve profits and shareholder value.
 The board of directors today declared a dividend of $0.10 per share with respect to the class A subordinate voting and class B shares for the quarter ended July 31, 1992, payable on Oct. 16, 1992 to shareholders of record at the close of business on Sept. 30, 1992.
 Magna also announced today that it intends to file an application to list its class A subordinate voting shares on the New York Stock Exchange. The NYSE confirmed the company's eligibility to file an original listing application earlier this month. Assuming acceptance, the class A subordinate voting shares would be listed on the NYSE within the next 60 days.
 MAGNA INTERNATIONAL INC.
 Consolidated Statements Of Income And Retained
 (Canadian dollars in millions, except per share figures, Audited)
 Earnings (Deficit)
 Period ended Years Ended Three Months Ended
 July 31 1992 1991 1992 1991
 Sales $2,358.8 $2,017.2 $625.0 $538.6
 Cost of goods sold 1,884.9 1,622.4 503.8 430.3
 Depreciation and
 amortization 102.4 105.3 25.5 25.8
 Selling, general and
 administrative 156.0 154.3 40.8 39.7
 Interest 49.9 82.3 7.3 19.2
 Equity (income) loss 0.8 2.7 (3.9) (1.3)
 Income before the following 164.8 50.2 51.5 24.9
 Income taxes 49.8 27.0 15.1 9.5
 Minority interest 17.0 6.7 5.1 3.8
 Net income for the period 98.0 16.5 31.3 11.6
 Retained earnings
 (deficit), beginning
 of period (35.0) (51.5) 24.9 (46.6)
 Total 63.0 (35.0) 56.2 (35.0)
 Dividends on Class A
 Subordinate Voting and
 Class B shares 7.4 -- 4.0 --
 Share issue expenses (net
 of related income taxes) 6.7 -- 3.3 --
 Retained earnings
 (deficit), end of period $ 48.9 $ (35.0) $ 48.9 $(35.0)
 Earnings per Class A
 Subordinate Voting or
 Class B share:
 Basic $ 2.91 $ 0.59 $ 0.82 $ 0.41
 Fully diluted $ 2.08 $ 0.58 $ 0.61 $ 0.31
 Cash dividends paid per
 Class A Subordinate
 Voting or Class B share $ 0.20 $ Nil $ 0.10 $ Nil
 MAGNA INTERNATIONAL INC.
 Consolidated Statements Of Cash Flows
 (Canadian dollars in millions, Audited)
 Period ended Years Ended Three Months Ended
 July 31 1992 1991 1992 1991
 Cash provided from (used for):
 Operating Activities --
 Net income for the period $ 98.0 $ 16.5 $ 31.3 $ 11.6
 Items not involving
 current cash flows 147.3 135.3 31.7 34.4
 Changes in non-cash
 working capital (13.2) (43.9) 80.5 54.5
 Total 232.1 107.9 143.5 100.5
 Investment Activities --
 Fixed asset additions (30.8) (27.9) (11.5) (9.3)
 Increase in investments
 and other (10.8) (11.7) (2.7) (5.9)
 Proceeds from disposition
 of fixed assets and other 17.8 -- 3.8 --
 Proceeds from restructuring
 transactions 223.8 -- 21.1 --
 Total Investment Activity (23.8) 184.2 (10.4) 5.9
 Financing Activities --
 Net repayments of debt (399.3) (267.3) (215.9) (153.6)
 Issue of Class A Subordinate
 Voting shares 247.8 -- 148.3 --
 Conversion of public debt to
 Class A Subordinate Voting
 shares (35.3) -- (35.3) --
 Redemption of special share
 purchase warrant (20.0) -- -- --
 Dividends paid to net of
 capital contribution by
 minority interests (2.8) (13.5) (0.8) (1.2)
 Dividends (7.4) -- (4.0) --
 Repurchase of minority
 interest in subsidiary -- (51.0) -- (51.0)
 Total Financing Activities (217.0) (331.8) (107.7) (205.8)
 Net increase (decrease) in
 cash during the period (8.7) (39.7) 25.4 (99.4)
 Cash, beginning of period 60.3 100.0 26.2 159.7
 Cash, end of period $ 51.6 $ 60.3 $ 51.6 $ 60.3
 MAGNA INTERNATIONAL INC.
 Consolidated Balance Sheets
 (Canadian dollars in millions, Audited)
 Periods Ended July 31 1992 1991
 Assets
 Current assets:
 Cash $ 51.6 $ 60.3
 Accounts receivable 255.7 238.3
 Inventories 172.3 159.0
 Prepaid expenses and other 20.6 28.0
 Total Assets 500.2 6485.6
 Investments 80.3 71.2
 Fixed assets 751.7 841.1
 Goodwill 17.8 20.4
 Other assets 51.4 50.7
 Total Assets $1,401.4 $1,469.0
 Liabilities And Shareholders' Equity
 Current liabilities:
 Bank indebtedness $ 70.4 $ 109.4
 Accounts payable 233.3 212.5
 Accrued salaries and wages 41.2 40.5
 Other accrued liabilities 42.0 33.0
 Income taxes payable 10.9 10.7
 Long-term debt due within one year 9.3 65.7
 Sub-Total 407.1 471.8
 Long-term debt 80.5 380.6
 Convertible subordinated bonds and debentures 165.2 201.2
 Deferred gains and financing obligations 6.2 16.7
 Deferred income taxes 81.9 76.2
 Minority interest 70.2 54.4
 Shareholders' equity:
 Capital stock -
 Class A Subordinate Voting shares 544.6 290.1
 Warrants to purchase Class A Subordinate
 Voting shares -- 20.0
 Class B shares 1.5 1.5
 Retained earnings (deficit) 48.9 (35.0)
 Currency translation adjustment (4.7) (8.5)
 Sub-Total 590.3 268.1
 Total Liabilities And Shareholders' Equity $1,401.4 $1,469.0
 -0- 9/14/92
 /CONTACT: David Copeland, executive vice-president and chief financial officer of Magna International Inc., 416-477-7766./
 (MAGAF) CO: Magna International Inc. ST: Ontario IN: AUT SU: ERN


LD -- NY081 -- 9370 09/14/92 18:22 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 14, 1992
Words:1364
Previous Article:NEVADA GOVERNOR TO RECOGNIZE AMWAY CORP. AT ANNUAL INDUSTRY APPRECIATION LUNCHEON
Next Article:PLUNKETT & COONEY FLINT OFFICE MOVES TO NEW PLAZA ONE FINANCIAL CENTER
Topics:


Related Articles
MAGNA INTERNATIONAL REPORTS RESULTS
MAGNA INTERNATIONAL ANNOUNCES SECOND QUARTER RESULTS
MAGNA INTERNATIONAL INC. REPORTS RESULTS
MAGNA POSTS RECORD FIRST QUARTER RESULTS AND BOOSTS DIVIDEND
MAGNA REPORTS RECORD SALES & PROFITS
MAGNA ANNOUNCES 1996 FIRST QUARTER RESULTS
Magna Announces 1997 Second Quarter Results and Other Developments
Magna Announces 1998 Second Quarter Results
Magna Announces Record 1998 Third Quarter Operating Results
Magna Announces 1998 Fourth Quarter and Fiscal Year Results.

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