Magna Reveals Profitable Q4 2011
Magna International revealed late Thursday its fourth quarter 2011 earnings. Reporting a sales total of $7.3 billion, Magna’s sales increased 13 per cent in direct comparison to Q4 2010. Higher sales were attributed to Magna’s enhanced North American vehicle production sales which increased 15 per cent.
Magna’s complete vehicle assembly sales saw an increase as well, although minimal. Showing a 3 per cent jump from 2010, sales reached $625 million, while vehicle assembly volumes rose 19 per cent to an estimated 30,000 units.
What does this mean for stockholders? Net income that Magna attributed was a total of $312 million equalling diluted earnings per share at $1.32. Comparatively to Q4 2010, shareholders saw an increase of $0.43.
"Overall, we are pleased with our strong results for 2011. Improving our operating results in Europe remains a key focus point for us in 2012. We also currently have many new facilities planned or under construction around the world. Ensuring that these new facilities launch successfully is another key area of focus for us this year,” said Don Walker, Magna’s CEO. "Our top priorities include bringing all of our manufacturing facilities up to 'world class manufacturing' levels, the continued focus on innovation in order to support our customers and win new business, and the enhancement of our leadership development process to ensure that we have strong leaders to manage our operations around the world."
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"Our solid balance sheet and strong cash flow generation position us well to further invest in our business through a combination of capital spending, acquisitions and when prudent, repurchasing our Common shares. We intend to utilize our balance sheet in these areas. In addition, we will continue to return cash to our shareholders through our quarterly dividend, which is currently at a record level,” said Vince Galifi, Magna’s Executive Vice President and CFO.