Magna Clocks 14% Sales Decline In Q4 On Chip Shortages, Lags Consensus

  • Magna International Inc MGA reported a fourth-quarter FY21 sales decline of 14% year-on-year, to $9.11 billion, missing the analyst consensus of $9.31 billion.
    • Global light vehicle production declined 17%, primarily driven by the semiconductor chip shortages the industry has faced throughout 2021.
    • Body Exteriors & Structures segment sales decreased 18% Y/Y, Power & Vision declined 12%, Seating Systems lost 7%, and Complete Vehicles sales fell 14%.
    • The operating margin was 6.3%, and operating income before income taxes for the quarter was $576 million.
    • Adjusted EBIT more than halved to $508 million with an adjusted EBIT margin of 5.6%.
    • Adjusted EPS of $1.30 missed the analyst consensus of $1.59.
    • The company raised quarterly cash dividends by 5% to $0.45 per share, payable on March 11, 2022, to shareholders of record on February 25, 2022.
    • Outlook: Magna sees FY22 total sales of $38.8 billion - $40.4 billion, below the consensus of $43.41 billion.
    • For FY24, the company forecasts total sales of $44.6 billion - $47.1 billion.
  • Price Action: MGA shares traded lower by 0.61% at $80.48 in premarket on the last check Friday.
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