Magna International Inc. (MGA,MG.TO) said its second-quarter sales, adjusted EBIT and earnings per share came in well below the company’s expectations due to significant production disruptions as a result of the global semiconductor chip shortage. The company reduced its fiscal 2021 guidance, largely reflecting reduction in expected global light vehicle production.
Second-quarter adjusted profit per share was $1.40 compared to a loss of $1.71 per share, a year ago. On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $1.47, for the quarter. Analysts’ estimates typically exclude special items. Adjusted EBIT was $557 million compared to a loss of $600 million, last year.
Net income attributable to Magna was $424 million compared to a loss of $647 million, last year. Profit per share was $1.40, compared to a loss of $2.17.
Sales were $9.0 billion, up 110% over the second quarter of 2020, as global light vehicle production increased 58%, largely driven by increases in North America and Europe. Analysts expected revenue of $9.37 billion, for the quarter.
For fiscal 2021, the company now expects total sales in a range of $38.0 billion to $39.5 billion, revised from prior guidance range of $40.2 billion to $41.8 billion. Net income attributable to Magna is now expected in a range of $2.0 billion to $2.2 billion, revised from prior guidance of $2.2 billion to $2.4 billion.
The Board declared a second quarter dividend of $0.43 per common share, payable on September 3, 2021 to shareholders of record as of the close of business on August 20, 2021.
Shares of Magna International were down 4% in pre-market trade on Friday.
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