MAGNA INTERNATIONAL REPORTS RESULTS
MAGNA INTERNATIONAL REPORTS RESULTS MARKHAM, Ont., Dec. 5 /PRNewswire/ -- Magna International Inc.
(TSE: MG.A, MG.B; NASDAQ: MAGAF) today announced results for the first quarter of fiscal 1992. Sales for the quarter were $617 million, representing a 24 percent increase over the comparable period of the previous year. North American vehicle production volumes for the first quarter were 3.0 million units as compared to 3.1 million units for the same period last year. All results are reported in Canadian dollars.
Three months ended Oct. 31 1991 1990 Sales $617.2 $498.4 Income before income taxes and minority interest $43.3 $10.5 Net income $25.5 $2.8 Earnings per share: Basic $0.92 $0.10 Fully diluted $0.59 $0.10 The company reported operating income of $43.3 million before income tax for the first quarter of fiscal 1992, compared to $10.5 million for the same period last year. Continued improvements in operating efficiencies and capacity utilization have resulted in improved profitability even though North American vehicle production is approximately the same as the comparable period last year. The effective income tax rate for the quarter was 32.3 percent compared to 75 percent in the comparable quarter last year. This reduction in tax rate results from the timing of the recognition of the effect of tax losses for accounting purposes. For the remainder of the year, the company expects to have a tax rate lower than the statutory rate of 39 percent which is applicable to the company. Fully diluted earnings per share for the quarter amounted to $0.59 as compared to $0.10 for the same period of the prior year. On a pro forma basis, assuming that the approximate six million Class A shares issued on Nov. 29, 1991, were outstanding during the first quarter, fully diluted earnings per share would have been $0.55. Chairman Frank Stronach said, "Debt reduction remains a high priority for Magna. The share offering which we recently completed has now placed us in a secure financial position. It is our intention to continue to reduce our indebtedness with cash flow from operations. "I am pleased with the financial success of the first quarter. Looking forward, we anticipate lower automotive production levels in our second quarter as a result of seasonal reductions and the current recessionary environment. While we anticipate our profitability to be less than that recorded in the first quarter, we expect to be substantially more profitable than the second quarter of last year. "Overall for fiscal 1992, we anticipate an increase in North American vehicle production of between 5 and 10 percent. Even with this modest recovery, we are optimistic that our continuing efficiency efforts will result in improved returns for our shareholders." MAGNA INTERNATIONAL INC. Consolidated Statements of Income (Unaudited) (Canadian dollars in millions, except per share figures) Three months ended Oct. 31 1991 1990 Sales $617.2 $498.4 Cost of goods sold 490.0 400.5 Depreciation and amortization 25.7 27.2 Selling, general and administrative 40.2 40.9 Interest 16.6 20.1 Equity (income) loss 1.4 (0.8) Income before the following 43.3 10.5 Income taxes 14.0 7.9 Minority interest 3.8 (0.2) Net income for the period $ 25.5 $ 2.8 Earnings per Class A subordinate voting or Class B share: Basic $ 0.92 $ 0.10 Fully diluted $ 0.59 $ 0.10 MAGNA INTERNATIONAL INC. Consolidated Statements of Cash Flows (Unaudited) (Canadian dollars in millions) Three months ended Oct. 31 1991 1990 Cash provided from (used for): OPERATING ACTIVITIES - Net income $ 25.5 $ 2.8 Items not involving current cash flows 39.6 29.3 Changes in non-cash working capital (95.9) (82.0) Total (30.8) (49.9) INVESTMENT ACTIVITIES - Fixed asset additions (5.4) (4.4) Net change in investments and other 1.4 (8.5) Proceeds from disposition of fixed assets and other 7.5 -- Proceeds from restructuring transactions -- 77.5 Total 3.5 64.6 FINANCING ACTIVITIES - Net repayment of debt (8.7) (20.3) Redemption of special share purchase warrant (20.0) -- Dividends paid to (net of capital contribution by) minority interests (0.4) (10.8) Total (29.1) (31.1) Net decrease in cash during the period (56.4) (16.4) Cash, beginning of period 60.3 100.0 Cash, end of period $ 3.9 $ 83.6 MAGNA INTERNATIONAL INC. Consolidated Balance Sheets (Unaudited) (Canadian dollars in millions) 10/31/91 7/31/91 ASSETS Current assets: Cash $ 3.9 $ 60.3 Accounts receivable 356.4 238.3 Inventories 162.1 159.0 Prepaid expenses 20.9 17.0 Net assets to be sold 3.9 11.0 Total 547.2 485.6 Investments 67.0 71.2 Fixed assets (net) 813.7 841.1 Goodwill 19.7 20.4 Other assets 50.5 50.7 TOTAL ASSETS $1,498.1 $1,469.0 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Bank indebtedness $ 104.3 $ 109.4 Accounts payable and other accruals 326.4 296.7 Long-term debt due within one year 66.6 65.7 Total 497.3 471.8 Long-term debt 370.4 380.6 Convertible subordinated bonds and debentures 200.6 201.2 Deferred gains and financing obligations 16.4 16.7 Deferred income taxes 84.5 76.2 Minority interest 57.8 54.4 Shareholders' equity: Capital stock - Class A Subordinate Voting shares 290.1 290.1 Warrants to purchase Class A Subordinate Voting shares 20.0 Class B shares 1.5 1.5 Deficit (9.5) (35.0) Currency translation adjustment (11.0) (8.5) Total 271.1 268.1 Total liabilities and shareholders' equity $1,498.1 $1,469.0 -0- 12/5/91 /CONTACT: David Copeland, executive vice president and chief financial officer, 416-477-7766/ (MAGAF) CO: Magna International Inc. ST: Ontario IN: MNG SU: ERN
GK -- NY062 -- 9717 12/05/91 13:30 EST
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|Date:||Dec 5, 1991|
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