Magna Profit Falls on Charges |
| Wall Street Journal - Nov 3, 2011 |
Magna International Inc.'s third-quarter earnings slumped 62% and fell short of analyst expectations, as the big auto-parts maker continues to struggle with execution problems in Europe.
Sales for the big North American auto-parts maker were up 21%, with complete vehicle assembly sales up 28% to $663 million and volumes up 55% to about 32,000 units. But Magna's two struggling divisions in Europe that make exterior vehicle parts lost $37 million in the quarter and it took a $113 million charge related to the sale of a third struggling facility in Germany that makes vehicle carpets.
Magna said vehicle production was up 4% in Western Europe during the quarter and 8% in North America.
Separately, auto parts supplier Visteon Corp. swung to a third-quarter profit of $41 million, or 79 cents a share, compared to a loss of $140 million, or $1.08 a share, a year ago. The Van Buren Township, Mich., company attributed the gain to higher sales and favorable currency exchange rates.
Read Full Article from Wall Street Journal
- Posted: 2011-11-03 12:27:09
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