Magna update future outlook and continues expansion in south america with acquistion of PABSA.

Magna expects up to $27.1-billion (U.S.) sales in 2011

2011-01-12 06:27 ET - News Release

Mr. Vince Galifi reports

MAGNA ANNOUNCES OUTLOOK AND OTHER MATTERS

Magna International Inc. has issued its financial outlook for 2011. All amounts are in United States dollars.

Don Walker, Magna's chief executive officer, commented: "As 2011 begins, vehicle production is poised for future growth in a number of important markets for us, including North America. Accordingly, our outlook reflects significant sales growth, including expansion in high-growth markets in the next few years. We also have the balance sheet, cash flow generation, engineering and manufacturing footprints, technologies and motivated work force to support our growth initiatives around the world. These factors combined leave us confident about Magna's future."

For the full year 2011, Magna expects consolidated total sales to be between $25.6-billion and $27.1-billion and expects consolidated production sales to be between $21.7-billion and $22.7-billion, based on full year 2011 light vehicle production volumes of approximately 12.9 million units in North America and approximately 13.3 million units in Western Europe. It expects full year 2011 production sales to be between $12.7-billion and $13.2-billion in North America, between $7.8-billion and $8.1-billion in Europe and between $1.2-billion and $1.4-billion in the rest of world. Magna expects full year 2011 complete vehicle assembly sales to be between $2.4-billion and $2.7-billion. It expects its 2011 effective income tax rate to be approximately 20 per cent.

In addition, Magna expects that its full year 2011 spending for fixed assets will be between $900-million and $1.0-billion. This amount reflects continuing investment to support new and replacement business in the company's traditional markets as well as investment to expand in a number of high-growth markets.

Finally, in addition to the company's 2011 sales outlook above, it expects a net increase in total production sales over the two-year period from 2011 to 2013 of approximately $3-billion, based on assumed full year 2013 light vehicle production volumes of approximately 14.8 million units in North America and approximately 14.1 million units in Western Europe. The company expects the net increase in total production sales to be split approximately equally among the its North America, Europe and the rest of world segments.

In this 2011 outlook, in addition to 2011 and 2013 light vehicle production, Magna has assumed no material acquisitions or divestitures. In addition, it has assumed that foreign exchange rates for the most common currencies in which it conducts business relative to its U.S. dollar reporting currency will approximate year-end 2010 rates.

Governance

In connection with a continuing review of the company's system of corporate governance following the elimination of its dual-class share structure effective Aug. 31, 2010, the company's board today approved the adoption of a majority voting policy which will take effect commencing in respect of its 2012 annual meeting.

We seek Safe Harbor.



Magna International Inc
Symbol C : MG
Shares Issued 242,564,616
Close 2011-01-11 C$ 59.59
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Magna acquires Pabsa SA

2011-01-12 05:29 ET - News Release

Mr. Joe Pittel reports

MAGNA SEATING CONTINUES EXPANSION IN SOUTH AMERICA WITH ACQUISITION OF PABSA

Magna Seating, an operating unit of Magna International Inc. which develops and manufactures complete seating solutions and mechanisms, continues its growth in South America with the acquisition of automotive seat supplier Pabsa SA. The new entity will operate as Magna Seating Argentina.

Pabsa, previously part of the L'Equipe Monteur Group, is based in Buenos Aires, Argentina, and is a vertically integrated supplier of complete seats, foam products, trim covers and seat structures. In 2010, it recorded sales of approximately $110-million (U.S.).

The acquisition -- which includes two production facilities in Buenos Aires and one in Cordoba, Argentina, and has approximately 960 employees -- increases Magna Seating's global footprint and further positions the company as a leading supplier of automotive seating solutions in South America.

"We continue to make a significant commitment to the South American automotive market and our global OEM customers," said Joe Pittel, president of Magna Seating. "Through recent acquisitions and investment we have strengthened our position to immediately support the global platforms of our customers."

Magna Seating recently announced the acquisition of automotive seating supplier Resil Minas and the establishment of a manufacturing facility in the Sao Paulo area to produce complete seats for General Motors and Volkswagen.