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MAGNA INTERNATIONAL REPORTS RESULTS

 MAGNA INTERNATIONAL REPORTS RESULTS
 MARKHAM, Ontario, May 27 /PRNewswire/ -- Magna International Inc.


(NASDAQ: MAGAF) today announced results for the third quarter of fiscal 1992. Magna's sales increased 27.5 percent to $632.2 million during the third quarter compared to $495.9 million during the third quarter of last year. Year to date sales totalled $1,733.8 million, a 17.3 percent increase over sales of $1,478.6 million achieved during the first nine months of fiscal 1991. The 17.3 percent increase in sales primarily resulted from an increase of approximately seven percent in North American vehicle production over the prior year and an increase in Magna's average production content per vehicle of 10 percent. All results are reported in Canadian dollars.
 MAGNA INTERNATIONAL
 Summary of Financial Information
 (In Canadian dollars)
 Periods ended Nine Months Three Months
 April 30 1992 1991 1992 1991
 Sales $1,733.8 $1,478.6 $632.2 $495.9
 Income before income
 taxes and minority
 interest 113.3 25.3 51.3 12.5
 Net income 66.7 4.9 30.5 4.4
 Fully diluted earnings
 per share $1.48 $0.18 $0.62 $0.16
 The increased sales together with improved operating efficiencies, higher capacity utilization, reduced overhead costs and reduced interest expense all contributed to an increase in operating income during the first nine months of fiscal 1992. Pre-tax operating income increased to $51.3 million for the current quarter and $113.3 million for the first nine months of fiscal 1992 compared to $12.5 million for the third quarter of fiscal 1991 and $25.3 million for the first nine months of fiscal 1991.
 On a fully diluted basis, net income per share was $0.62 for the third quarter and $1.48 for the first nine months of fiscal 1992 compared to $0.16 for the third quarter of fiscal 1991 and $0.18 for the first nine months of fiscal 1991. These earnings per share improvements include the positive effect of a lower effective income tax rate of approximately 31 percent during the third quarter compared to an effective income tax rate of approximately 51 percent for the third quarter of fiscal 1991. The company expects to continue to have a tax rate lower than the expected statutory rate for the remainder of fiscal 1992 and for fiscal 1993.
 Cash flow from operations and proceeds from the issuance of Class A subordinate voting shares during the second quarter have been used to reduce debt during the first nine months of fiscal 1992. This has resulted in the reduction of Magna's total debt-to-equity ratio at the end of the third quarter to approximately 1.1 to 1.0, from 2.2 to 1.0 at July 31, 1991. On a pro forma basis, assuming the eventual conversion to equity of approximately $200 million in convertible subordinated bonds and debentures, the total debt-to-equity ratio would be 0.5 to 1.0.
 Management anticipates that North American vehicle production for the fourth quarter will fall marginally below the third quarter level of 3.0 million units but exceed the 2.7 million units produced in the fourth quarter of fiscal 1991. North American vehicle production for fiscal 1993 is currently forecast to exceed 1992 levels by approximately 10 percent. This modest recovery together with improved operating efficiencies should continue to result in improved 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 April 30, 1992, payable on July 16, 1992 to shareholders of record on June 30, 1992.
 MAGNA INTERNATIONAL INC.
 Consolidated Statements of Income
 (Canadian dollars in millions, except per share data -- Unaudited)
 Periods ended Nine Months Three Months
 April 30 1992 1991 1992 1991
 Sales $1,733.8 $1,478.6 $632.2 $495.9
 Cost of goods sold 1,381.1 1,192.1 503.6 397.9
 Depreciation and
 amortization 76.9 79.5 25.6 26.3
 Selling, general and
 administrative 115.2 114.6 39.8 36.6
 Interest 42.6 63.1 12.4 21.0
 Equity (income) loss 4.7 4.0 (0.5) 1.6
 Income before the
 following 113.3 25.3 51.3 12.5
 Income taxes 34.7 17.5 15.7 6.4
 Minority interest 11.9 2.9 5.1 1.7
 Net income for the period $66.7 $4.9 $30.5 $4.4
 Earnings per Class A
 subordinate voting or
 Class B share:
 Basic $2.13 $0.18 $0.89 $0.16
 Fully diluted $1.48 $0.18 $0.62 $0.16
 MAGNA INTERNATIONAL INC.
 Consolidated Statements Of Cash Flows
 (Canadian dollars in millions -- Unaudited)
 Periods ended Nine Months Three Months
 April 30 1992 1991 1992 1991
 Cash provided from (used for):
 OPERATING ACTIVITIES -
 Net income $66.7 $4.9 $30.5 $4.4
 Items not involving
 current cash flows 115.6 100.9 41.0 38.2
 Changes in non-cash
 working capital (93.7) (98.4) (19.8) 12.4
 Total 88.6 7.4 51.7 55.0
 INVESTMENT ACTIVITIES -
 Fixed asset additions (19.3) (18.6) (7.7) (10.7)
 Net change in investments
 and other (8.1) (5.8) (0.5) 4.3
 Proceeds from disposition
 of fixed assets and other 14.0 -- -- --
 Proceeds from restructuring
 transactions -- 202.7 -- 37.6
 Total (13.4) 178.3 (8.2) 31.2
 FINANCING ACTIVITIES -
 Net repayment of debt (183.4) (113.7) (39.5) (25.1)
 Issue of Class A
 subordinate voting shares 99.5 -- 3.0 --
 Redemption of special share
 purchase warrant (20.0) -- -- --
 Dividends paid to net of
 capital contribution by
 minority interests (2.0) (12.3) (0.5) (0.7)
 Dividends (3.4) -- (3.4) --
 Total (109.3) (126.0) (40.4) (25.8)
 Net increase (decrease) in
 cash during the period (34.1) 59.7 3.1 60.4
 Cash, beginning of period 60.3 100.0 23.1 99.3
 Cash, end of period $26.2 $159.7 $26.2 $159.7
 MAGNA INTERNATIONAL INC.
 Consolidated Balance Sheets
 (Canadian dollars in millions -- Unaudited)
 4/30/92 7/31/91
 ASSETS
 Current Assets:
 Cash $26.2 $60.3
 Accounts receivable 340.9 238.3
 Inventories 196.7 159.0
 Prepaid expenses 12.8 17.0
 Net assets to be sold -- 11.0
 Total current assets 576.6 485.6
 Investments 68.5 71.2
 Fixed assets (net) 786.5 841.1
 Goodwill 18.3 20.4
 Other assets 55.8 50.7
 Total Assets $1,505.7 $1,469.0
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Bank indebtedness $42.4 $109.4
 Accounts payable and accrued liabilities 341.3 296.7
 Long-term debt due within one year 77.1 65.7
 Total 460.8 471.8
 Long-term debt 255.3 380.6
 Convertible subordinated bonds and debentures 200.3 201.2
 Deferred gains and financing obligations 15.0 16.7
 Deferred income taxes 92.9 76.2
 Minority interest 65.0 54.4
 Shareholders' equity:
 Capital stock -
 Class A subordinate voting shares 393.0 290.1
 Warrants to purchase Class A subordinate
 voting shares 20.0
 Class B shares 1.5 1.5
 Retained earnings (deficit) 24.9 (35.0)
 Currency translation adjustment (3.0) (8.5)
 Total 416.4 268.1
 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,505.7 $1,469.0
 -0- 5/27/92
 /CONTACT: David Copeland, executive vice president and chief financial officer, 416-477-7766/
 (MAGAF) CO: Magna International Inc. ST: Ontario IN: AUT SU: ERN


SM-LR -- NY086 -- 4505 05/27/92 18:58 EDT
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