Magna Intern Stock Price, News & Analysis

LG Electronics and Magna International announced a joint venture to manufacture e-motors, inverters, and related e-drive systems, aiming to tap into the growing market for vehicle electrification. The venture, called LG Magna e-Powertrain, combines Magna's automotive manufacturing strength with LG's component development expertise. Over 1,000 employees from multiple locations will be involved. The joint venture is set to close by July 2021, contingent upon shareholder and regulatory approvals, positioning both companies to accelerate their growth in the electric powertrain market.

Magna has unveiled its new Gen5 camera-based driver assistance system, built on Mobileye's EyeQ5 technology, aimed at enhancing safety features in vehicles. This innovative 'one-box' solution simplifies installation and reduces costs, making advanced safety features like adaptive cruise control and automatic emergency braking accessible to a broader range of vehicles. Magna's ADAS systems are present in over 250 vehicle models globally, showcasing a strong collaboration with Mobileye and a commitment to improving automotive safety.

Magna International Inc. (NYSE: MGA) announced the Toronto Stock Exchange's acceptance of its Notice of Intention to Make a Normal Course Issuer Bid, allowing the company to repurchase up to 29,623,300 common shares, approximately 10% of its public float. This bid, starting November 15, 2020, and ending November 14, 2021, aims to purchase shares for cancellation and fulfill stock-based compensation. As of November 2, 2020, Magna had over 299 million common shares outstanding and previously repurchased 7.44 million shares at an average price of $44.74.

Magna International reported third-quarter sales of $9.1 billion, down 2% year-over-year, against a 4% decline in global light vehicle production. The company recorded a net income of $405 million, a turnaround from a loss of $233 million in Q3 2019. Diluted earnings per share improved to $1.35, with adjusted diluted earnings per share rising 38% to $1.95. Cash from operating activities reached $1.6 billion. For 2020, Magna raised its outlook, expecting total sales between $31.5 billion and $32.5 billion, driven by better vehicle production and cost efficiencies.

Magna's new CLEARVIEW™ technology will launch in 2022, enhancing driver safety through advanced camera and mirror systems. This innovative solution combines extensive expertise in mirrors, cameras, and electronics, offering customizable field views and improved visibility. The CLEARVIEW interior mirror features a unique frameless design that can switch between traditional and video displays, accommodating various viewing needs. Additionally, the exterior mirror includes safety features like surround-view cameras, further promoting safe driving. This new business win highlights Magna's commitment to leading in the new mobility landscape.

On October 20, 2020, Magna announced the appointment of Seetarama (Swamy) Kotagiri as CEO, effective January 1, 2021. He succeeds Don Walker, who will retire after serving 15 years as CEO and 33 years in total at the company. Kotagiri, a 21-year veteran of Magna, previously held roles such as Chief Technology Officer. His leadership is seen as pivotal in aligning the company with new mobility trends. Magna’s strong leadership development and succession planning are highlighted, ensuring smooth transitions within the organization.

Magna has entered into agreements with Fisker to manufacture the Fisker Ocean SUV in Europe, leveraging Magna's electric vehicle (EV) architecture. The production is slated to begin in Q4 2022, enhancing Magna's strategy to support both traditional and new automakers. Fisker will utilize Magna's engineering capabilities and innovative solutions, with Magna also receiving warrants to purchase approximately 6% of Fisker's equity. This collaboration positions Magna favorably in the growing e-mobility market.

Magna International Inc. (TSX: MGA; NYSE: MGA) has announced its upcoming Third Quarter 2020 Results Conference Call scheduled for November 6, 2020 at 8:00 AM ET. Interested parties can join via a toll-free number for North America at 1-800-908-8370 or the international line at 1-416-981-9035. A webcast will also be available on their website. The conference will be rebroadcasted for a limited time until November 13, 2020.

Magna International reported a challenging second quarter of 2020 due to the COVID-19 pandemic, with sales dropping 58% year-over-year to $4.3 billion. The company experienced significant declines in vehicle production in North America (70%) and Europe (59%). Estimated impacts include $5.5 billion in lost sales and a $1.2 billion decrease in Adjusted EBIT. Net loss attributable to Magna was $647 million, leading to a diluted loss per share of $2.17. Despite these challenges, Magna has reinstated its 2020 financial outlook and aims for a recovery in earnings and cash flow in the latter half of the year.