Magna International cuts 2019 outlook after GM strike in U.S. cuts volume

AURORA, Ont. — Magna International Inc. has cut its outlook for the year on lost volume from the nearly six-week strike by GM workers in the United States.

The company, which reports in U.S. dollars, says it now expects total sales this year of between $38.7 billion and $39.8 billion, a reduction of $1.3 billion on the top end of the range. 

Magna also estimates 2019 net income of between $1.8 billion and $1.9 billion, a $200 million cut from the top end.

For the third quarter, the company reported a net loss of $233 million, or 75 cents per share, compared with earnings of $554 million or $1.62 per share for the same quarter last year.

The company recorded a $537 million non-cash impairment charge related its German transmission business Getrag in the quarter.

Adjusted earnings came in at $1.41 per share for the quarter ending Sept. 30, compared with $1.56 per share for the same quarter last year.

Analysts had expected $1.34 in adjusted earnings per share according to financial markets data firm Refinitiv.

This report by The Canadian Press was first published Nov. 8, 2019.

Companies in this story: (TSX:MG).

The Canadian Press