UPDATE: Magna Posts Upbeat Q2 Profit, Lifts Sales Forecast

Magna International

reported stronger-than-expected second-quarter profit and lifted its full-year sales outlook. For the full year, Magna lifted its sales guidance to $35.6 billion to $37.3 billion, versus its earlier forecast of $34.9 billion to $36.6 billion. The Aurora, Canada-based company's quarterly net income jumped 23% to $510 million, or $2.32 per share, from $415 million, or $1.78 per share, in the year-ago period. Excluding restructuring charges, Magna earned $2.37 per share in the quarter. Its sales gained 5.6% to $9.46 billion. However, analysts were expecting earnings of $2.22 per share on revenue of $9.36 billion. Complete vehicle assembly sales slipped to $793 million from $796 million, while complete vehicle assembly volumes fell 11% to around 34,000 units. North American vehicle production rose 3% in the quarter, while European vehicle production surged 2%. Magna's North American production sales in the second quarter climbed 10% to $4.75 billion, while production sales gained 4% to $2.66 billion in Europe. Production sales in Asia also jumped 23% to $402 million, while production sales in rest of the world declined 33% to $163 million. Tooling, engineering and other sales dropped 5% to $697 million in the quarter. Magna shares fell 1.81% to close at $105.16 yesterday.