Ontario-based Tier 1 automotive supplier Magna International announced it earned US$ 554 million in the quarter ended September 30, the result is 8.2% up compared to the US$ 512 million the company posted a year ago.
Revenue totaled a record US$ 9.62 billion, 8.6% up from US$ 8.86 billion in the same quarter last year. Every single operating segment reported sales growth compared to the third quarter of 2017, said the company in its report.
“The strong growth was achieved in a period in which light vehicle production increased 4% in North America and was essentially unchanged in Europe,” says the document.
Despite its good performance in the third quarter, the company lowered the outlook for the year. In its forecast Magna now expects total sales between US$ 40.3 billion and US$ 41.4 billion this year, down from between US$ 40.3 million and US$ 42.5 billion.
Magna also lowered its profit expectations for 2018 to between US$ 2.3 billion and US$ 2.4 billion, compared with its earlier forecast of between US$ 2.3 billion and US$ 2.5 billion.
The company also lowered its expectations for 2018 light vehicle production in North America to 17 million units, from 17.2 million in its earlier forecast. The forecast for European production was lowered to 22.5 million from 22.6 million.
Magna operates 32 production facilities in Mexico. Except for its vehicle engineering and contract manufacturing division, every other business branch of Magna International has presence in the country. Overall the company’s workforce in Mexico currently totals more than 30,000 employees.