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MAGNA INTERNATIONAL INC. REPORTS RESULTS

 MARKHAM, Ontario, June 2 /PRNewswire/ -- MAGNA INTERNATIONAL INC. (NYSE: MGA) today announced results for the third quarter of fiscal 1993. Magna achieved record sales of $742.3 million during the third quarter bringing year to date sales to $1.958 billion, up 13 per cent over the prior year. Third quarter fully diluted earnings per share was $0.80, an increase of 29 percent over the prior year. Fully diluted earnings per share for the nine months totalled $1.85. North American vehicle production of 3.55 million units for the third quarter was the highest quarterly production level experienced since the start of the recession and 18 per cent higher than the third quarter of the prior year. Year to date vehicle production was 9.5 million units, up 11 per cent over the prior year. All results are reported in millions of Canadian dollars, except per share figures.
 MAGNA INTERNATIONAL INC.
 Periods Ended Nine Months Three Months
 April 30, 1993 1992 1993 1992
 Sales $1,958.0 $1,733.8 $742.3 $632.2
 Income before income
 taxes and minority
 interest $ 159.7 $ 113.3 $ 71.7 $ 51.3
 Net income $ 100.8 $ 66.7 $ 44.4 $ 30.5
 Fully diluted earnings
 per share $ 1.85 $ 1.48 $ 0.80 $ 0.62
 Net income for the nine months is up 51 percent to $100.8 million reflecting the additional contribution from higher sales, lower interest costs and improved results from joint ventures. Gross margin was 19.5 percent for the third quarter, up from 18.1 percent in the second quarter, reflecting improved efficiencies and higher capacity utilization, although at 19.1 per cent for the nine months was down 1.2 per cent compared to the prior year reflecting major new program launch costs, facility start up costs and customer pricing pressure. The Company's income tax rate for the nine months continued to be below the Canadian statutory rate and is expected to be lower for the remainder of the year.
 The Company has substantially achieved its objective to be free of bank debt by July 31, 1993. Cash generated from operations for the nine months totalled $201 million. Sufficient excess cash was generated after dividend and investment requirements during the period to eliminate all outstanding bank borrowings (net of cash deposits) at April 30, 1993.
 The Company made investments of $21 million during the quarter bringing year to date spending to $76 million. Included in the year to date spending is the purchase, completed during the second quarter, of an operating facility for $20.6 million from one of the Company's joint ventures.
 Although the automotive industry historically experiences reduced production and sales levels in the fourth quarter, the Company will continue to benefit from a strengthened North American economy and increased outsourcing from North American, Japanese and European automobile manufacturers in future periods.
 The Board of Directors has 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 April 30, 1993 payable on July 15, 1993 to the shareholders of record on June 30, 1993.
 MAGNA INTERNATIONAL INC.
 Consolidated Statements of Income
 (Unaudited, Canadian dollars in millions, except per share figures)
 Periods Ended Nine Months Three Months
 April 30, 1993 1992 1993 1992
 Sales $1,958.0 $1,733.8 $742.3 $632.2
 Cost of goods sold 1,583.7 1,381.1 597.3 503.6
 Depreciation and
 amortization 77.8 76.9 26.0 25.6
 Selling, general and
 administrative 132.6 115.2 48.0 39.8
 Interest 16.4 42.6 5.2 12.4
 Equity (income) loss (12.2) 4.7 (5.9) (0.5)
 Income before the
 following 159.7 113.3 71.7 51.3
 Income taxes 44.1 34.7 21.1 15.7
 Minority interest 14.8 11.9 6.2 5.1
 Net income for the period $ 100.8 $ 66.7 $ 44.4 $ 30.5
 Earnings per Class A
 Subordinate Voting or
 Class B share:
 Basic $ 2.34 $ 2.13 $ 1.00 $ 0.89
 Fully diluted $ 1.85 $ 1.48 $ 0.80 $ 0.62
 MAGNA INTERNATIONAL INC.
 Consolidated Statements of Cash Flows
 (Unaudited, Canadian dollars in millions)
 Periods Ended NINE MONTHS THREE MONTHS
 April 30, 1993 1992 1993 1992
 Cash provided from (used for):
 OPERATING ACTIVITIES -
 Net income $ 100.8 $ 66.7 $ 44.4 $ 30.5
 Items not involving
 current cash flows 100.2 115.6 39.9 41.0
 Changes in non-cash
 working capital (35.9) (93.7) 35.1 (19.8)
 165.1 88.6 119.4 51.7
 INVESTMENT ACTIVITIES -
 Fixed asset additions (36.5) (19.3) (14.5) (7.7)
 Net change in investments
 and other (39.8) (8.1) (6.5) (0.5)
 Proceeds from disposition
 of fixed assets and other 4.4 14.0 0.6
 (71.9) (13.4) (20.4) (8.2)
 FINANCING ACTIVITIES -
 Net repayment of debt (73.7) (183.4) (76.2) (39.5)
 Issue of Class A
 Subordinate Voting shares 70.7 99.5 35.4 3.0
 Conversion of convertible
 bonds and debentures (54.8) (29.6)
 Redemption of special share
 purchase warrant (20.0)
 Dividends paid to (net of
 capital contribution by)
 minority interests (4.7) (2.0) (0.5) (0.5)
 Dividends (17.5) (3.4) (6.8) (3.4)
 (80.0) (109.3) (77.7) (40.4)
 Net increase (decrease) in
 cash during the period 13.2 (34.1) 21.3 3.1
 Cash, beginning of period 51.6 60.3 43.5 23.1
 Cash, end of period $ 64.8 $ 26.2 $ 64.8 $ 26.2
 MAGNA INTERNATIONAL INC.
 Consolidated Balance Sheets
 (Unaudited, Canadian dollars in millions)
 April 30 July 31
 1993 1992
 ASSETS
 Current assets:
 Cash $ 64.8 $ 51.6
 Accounts receivable 420.0 255.7
 Inventories 185.7 172.3
 Prepaid expenses 19.4 20.6
 689.9 500.2
 Investments 100.1 80.3
 Fixed assets (net) 729.3 751.7
 Goodwill 18.9 17.8
 Other assets 61.1 51.4
 TOTAL ASSETS $1,599.3 $1,401.4
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Bank indebtedness $ 58.3 $ 70.4
 Accounts payable and other accruals 461.0 327.4
 Long-term debt due within one year 6.2 9.3
 525.5 407.1
 Long-term debt 30.4 80.5
 Convertible subordinated bonds and debentures 113.6 165.2
 Deferred gains 3.8 6.2
 Deferred income taxes 83.5 81.9
 Minority interest 81.9 70.2
 Shareholders' equity:
 Capital stock -
 Class A Subordinate Voting shares 615.5 544.6
 Class B shares 1.3 1.5
 Retained earnings 132.2 48.9
 Currency translation adjustment 11.6 (4.7)
 760.6 590.3
 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,599.3 $1,401.4
 -0- 6/2/93
 /CONTACT: Graham Orr, Senior Vice-President, Corporate Development and Investor Relations of Magna International Inc., 416-477-7766/
 (MGA)


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

LD -- NY093 -- 4671 06/02/93 18:13 EDT
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Date:Jun 2, 1993
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