Magna Intern Stock Price, News & Analysis

Magna's new FreeForm™ seating technology, set to launch on four vehicles, offers innovative design and comfort advantages in the automotive market. This technology enhances styling flexibility, enabling design details as sharp as 1mm. It provides improved back comfort and incorporates sustainable materials, including up to 50% recycled content. With features like easier cleaning and additional cabin space, FreeForm™ aims to meet the growing demand for superior vehicle interiors. The launch involves a large SUV, a midsize crossover, a sedan, and an all-electric SUV, expected in dealership by 2022.

Magna International (NYSE: MGA) has revised its 2021 outlook due to a projected decline in light vehicle production, estimating a reduction of 7% in North America and 9% in Europe. This is primarily attributed to ongoing semiconductor chip shortages and COVID-19's impact on the automotive supply chain. The company now anticipates total sales between $35.4 billion and $36.4 billion, down from a previous range of $38.0 billion to $39.5 billion. Expected Adjusted EBIT Margin has also decreased, now forecasted between 5.1% and 5.4%, reflecting operational inefficiencies and increased costs.

Magna International (NYSE: MGA) will host its Q3 2021 results conference call on November 5, 2021, at 8:00 AM ET. Investors can join via telephone or webcast on the company's website. A replay will be available two hours post-call until November 12, 2021. For North America, the dial-in number is 1-800-926-9175, and for international callers, it is 1-416-641-6701. Additional contact information includes investor relations vice-president Louis Tonelli and executive assistant Nancy Hansford for teleconference inquiries.

On October 4, 2021, Magna International Inc. announced that Veoneer, Inc. has chosen Qualcomm's proposal to acquire the company for $37 per share, deeming it superior to Magna's offer. As a result, Veoneer has terminated its merger agreement with Magna and will pay a $110 million termination fee. Magna's CEO highlighted the decision to waive a four-day matching period as a sign of disciplined valuation practices. Magna remains focused on long-term value creation as a leading automotive supplier.

Magna will showcase a full range of innovative sustainable vehicle systems at the IAA 2021 Mobility Show in Munich, located at Hall B3, Booth C60. The event highlights Magna's commitment to advancing mobility and sustainability. Key technologies on display include eDrive technologies, the Etelligent Reach™ powertrain system with a 145 km range, and ADAS technologies like the industry-first digital radar. Magna emphasizes its unique position in the automotive industry to support automakers through transformative changes driven by regulatory requirements and technological advancements.

Magna has unveiled its innovative Mezzo Panel, a fully integrated technology for electric vehicles. It facilitates the incorporation of ADAS sensors and lighting, offering designers a customizable canvas. Features include hidden-until-lit functionality, allowing for smooth surfaces that illuminate creatively, and potential for active aerodynamics. Future designs may utilize sustainable materials, enhancing automakers' sustainability goals. This technology represents a significant step towards meeting zero-emissions targets in the automotive industry.

Magna International reported a significant financial turnaround for Q2 2021, with sales soaring 110% to $9.0 billion and diluted earnings per share reaching $1.40, a stark contrast to losses from the same period last year. The company benefitted from a 58% increase in global light vehicle production. However, it has revised its outlook due to an ongoing semiconductor chip shortage affecting production levels. For the six months ending June 30, total sales were $19.2 billion, up 48%, with net income at $1.0 billion.

LG Electronics and Magna International have formed a joint venture, LG Magna e-Powertrain, to enhance electric powertrain component development. Based in Incheon, South Korea, the company will focus on manufacturing e-motors and inverters. CEO Cheong Won-suk and COO Javier Perez lead the team, leveraging both companies’ strengths to drive innovation. As the electric vehicle market expands, this collaboration aims to deliver scalable solutions for automakers, enhancing competitiveness in a rapidly growing sector, which is projected to see significant market growth by 2030.