Magna feels impact of U.S. dollar; 2015 revenue declines 7 per cent
Donald J. Walker, chief executive officer of Magna International Inc., is silhouetted as he waits for the company's annual general meeting to begin in Toronto on May 10, 2013. (Nathan Denette / THE CANADIAN PRESS)
The Canadian Press
Published Friday, February 26, 2016 7:22AM EST
Last Updated Friday, February 26, 2016 8:05AM EST
AURORA, Ont. -- Magna International Inc. (TSX:MG) says the strong American dollar had a significant negative impact on its revenue last year, which was down seven per cent from 2014.
The Canadian autoparts giant, which reports in U.S. dollars, says its full-year sales for 2015 were $32.1 billion -- down from $34.4 billion in 2014.
The impact of foreign currency translations shaved $3.35 billion from the value of Magna's sales last year and, without that, last year would have been up three per cent from 2014.
In the final quarter of last year, Magna's sales were $8.6 billion, down three per cent from $8.8 billion a year earlier. That included a $770-million hit from the weaker Canadian dollar and the euro against the U.S. dollar.
Magna also saw a decline in sales for assembling complete vehicles for its customers.
In 2015, Magna saw assembly volume drop 23 per cent to 104,000 units and revenue fall 25 per cent to $2.36 billion, including cost of currency conversion, as a number of programs ended.
Magna's net income from continuing operations was up for the year as a whole, but down in the fourth quarter. Full-year profit from continuing operations was $1.94 billion, up one per cent from $1.922 billion.
For the fourth quarter ended Dec. 31, net income from continuing operations dropped by 6.4 per cent to $483 million from $516 million. Earnings per share from continuing operations dropped to $1.19 from $1.23.
During the year, Magna sold almost all of its interiors operations -- classified as discontinued operations -- and announced or completed major acquisitions that the company believes will help it reposition for future demand.
"Overall, we are satisfied with the progress we made during 2015," said chief executive Don Walker in a statement from Aurora, Ont., where Magna has its global headquarters.
In its outlook for 2016, Magna is estimating between $34.6 billion and $36.3 billion of sales this year. That would include between $1.7 billion and $2 billion from assembling complete vehicles for Magna customers.