Magna Clocks 5% Sales Decline In Q1; Cuts FY22 Outlook

• Magna International Inc (NYSE:MGA) (TSX:MG) reported a first-quarter FY22 sales decline of 5.3%, to $9.64 billion, beating the consensus of $9.31 billion.
• Global light vehicle production growth was down 7%, primarily driven by a 16% decrease in Europe.
• Body Exteriors & Structures segment sales grew 1.3% Y/Y, Power & Vision fell 3.5%, Seating Systems gained 5.6%, and Complete Vehicles sales decreased 31.1%.
• The operating margin was 4.4%, and operating income before income taxes for the quarter was $420 million, a 47.8% decrease.
• Adjusted EBIT was $507 million with an adjusted EBIT margin of 5.3%.
• Adjusted EPS of $1.28 missed the analyst consensus of $1.59.
• Outlook: Magna has cut FY21 sales guidance to $37.3 billion - $38.9 billion (prior $38.8 billion - $40.4 billion), versus the consensus of $43.41 billion.
• Price Action: MGA shares closed higher by 2.36% at $62.45, and MG closed 2.20% higher at C$79.92 on TSX on Thursday.