11:05 AM EDT, 05/02/2025 (MT Newswires) -- Magna International ( MGA ) on Friday reported first-quarter earnings below Wall Street's estimates, while the Canadian auto parts supplier raised its full-year sales outlook on the back of foreign exchange tailwinds.
The company now anticipates sales for the current year to come in between $40 billion and $41.6 billion, up from its previous guidance of $38.6 billion to $40.2 billion. The consensus on FactSet is for sales of $39.23 billion. The outlook excludes the potential impact of tariffs, including on light vehicle production.
Magna's shares on the New York Stock Exchange fell 3.3% in Friday's trading session.
"Despite increased uncertainty due to the current tariff environment, we have updated our outlook, which includes higher sales largely due to foreign currency translation," Chief Executive Swamy Kotagiri said during an earnings call, according to a FactSet transcript. "We also assume exchange rates in our outlook will approximate recent rates."
US President Donald Trump signed two executive orders Tuesday, reducing the 25% tariff rate on imported auto parts and ensuring that such levies don't stack on separate tariffs like those on aluminum.
The company continues to work with its customers to mitigate the impact of tariffs and "adjust in this rapidly evolving environment, focusing on what is under our control, including cost containment efforts," Kotagiri told analysts. "We have clearly communicated to our customers our intention to pass on any unmitigated incremental tariff costs."
Adjusted per-share earnings fell to $0.78 in the three-month period ending March from $1.08 a year earlier, below the FactSet-polled consensus of $0.85. Sales fell 8% year over year to $10.07 billion, but came in above the Street's view of $9.65 billion.
Global light vehicle production slipped 3% amid declines in Europe and North America that were partially offset by gains in China.
Revenue for the body exteriors and structures segment decreased to $3.97 billion from $4.43 billion in the prior-year quarter, while power and vision moved down to $3.65 billion from $3.84 billion. Seating systems sales fell to $1.31 billion from $1.46 billion, while complete vehicles dropped to $1.28 billion from $1.38 billion.
"We are actively advancing several initiatives including operational excellence, restructuring, commercial recoveries, and reduced capital and engineering spending to mitigate the impact of tariffs," Kotagiri said in a statement.
Price: 33.83, Change: -1.18, Percent Change: -3.37
