Magna's Quarterly Results Fall Short Due to Fewer Vehicle Assemblies
ECONOMY & POLICY

Magna's Quarterly Results Fall Short Due to Fewer Vehicle Assemblies

Auto parts supplier Magna International missed analysts' estimates for its second-quarter results, primarily due to halted production for certain vehicles and decreased volumes of assembled automobiles. Magna, which serves clients such as BMW, Mazda, and Ferrari, is involved in both parts production and complete vehicle assembly for various automakers.

Magna reported that sales were adversely affected by the cessation of production for specific programs, including the BMW 5-Series, and by reduced volumes of complete vehicle assembly. As a result, quarterly sales at its complete vehicle manufacturing unit fell by 18.6 per cent to $ 1.24 billion.

In contrast, Aptiv, a competitor, exceeded Wall Street's profit expectations on Thursday. However, its revenue from the segment producing electrical components decreased by 3 per cent due to reduced production by some of its customers.

In May, Magna faced asset impairments and restructuring costs totalling $ 316 million related to the struggling EV startup Fisker. Consequently, the Ontario-based company revised its 2026 sales forecast downward to a range of $ 44.0 billion to $ 46.5 billion, from the previous estimate of $ 48.8 billion to $ 51.2 billion.

For the second quarter ending in June, Magna reported adjusted earnings of $ 1.35 per share, falling short of the estimated $ 1.44 according to LSEG data. The company's quarterly revenue declined slightly to $ 10.96 billion, whereas analysts had anticipated around $ 11 billion.

Auto parts supplier Magna International missed analysts' estimates for its second-quarter results, primarily due to halted production for certain vehicles and decreased volumes of assembled automobiles. Magna, which serves clients such as BMW, Mazda, and Ferrari, is involved in both parts production and complete vehicle assembly for various automakers. Magna reported that sales were adversely affected by the cessation of production for specific programs, including the BMW 5-Series, and by reduced volumes of complete vehicle assembly. As a result, quarterly sales at its complete vehicle manufacturing unit fell by 18.6 per cent to $ 1.24 billion. In contrast, Aptiv, a competitor, exceeded Wall Street's profit expectations on Thursday. However, its revenue from the segment producing electrical components decreased by 3 per cent due to reduced production by some of its customers. In May, Magna faced asset impairments and restructuring costs totalling $ 316 million related to the struggling EV startup Fisker. Consequently, the Ontario-based company revised its 2026 sales forecast downward to a range of $ 44.0 billion to $ 46.5 billion, from the previous estimate of $ 48.8 billion to $ 51.2 billion. For the second quarter ending in June, Magna reported adjusted earnings of $ 1.35 per share, falling short of the estimated $ 1.44 according to LSEG data. The company's quarterly revenue declined slightly to $ 10.96 billion, whereas analysts had anticipated around $ 11 billion.

Next Story
Infrastructure Transport

Cabinet Approves Key Highway and Rail Projects in Bihar Region

The Union Cabinet on Wednesday approved the four-laning of the 84.2-km Mokama-Munger section of the Buxar-Bhagalpur high-speed corridor, a key industrial region in poll-bound Bihar. The Cabinet also sanctioned the doubling of the 177-km Bhagalpur-Dumka-Rampurhat railway line, which passes through Bihar, Jharkhand, and West Bengal, at a cost of Rs 31.7 billion.The Rs 44.5 billion highway project will be constructed under the hybrid annuity model, a variant of public-private partnership. The Mokama-Munger stretch was the only remaining two-lane section of the 363-km Buxar-Bhagalpur corridor. Fou..

Next Story
Infrastructure Transport

NGT Issues Notice on Bengaluru Twin Tunnel Project

The National Green Tribunal (NGT) on Wednesday issued notices in response to a petition filed by Bengaluru Praja Vedike and others, challenging the Bengaluru twin tunnel road project. Petitioners claim the project was “hastily announced” and bypassed mandatory environmental impact assessment procedures.Notices have been served to the Karnataka Government, Greater Bengaluru Authority, State Environment Impact Assessment Authority (SEIAA), Bengaluru Smart Infrastructure Ltd (B-SMILE), the Union Ministry of Environment, Forest and Climate Change, and project consultants.The 16.74-km twin-tube..

Next Story
Real Estate

India’s Residential Sales to Dip Slightly in FY26

Residential sales in India’s seven major cities are projected to decline by up to 3 per cent year-on-year in FY26 to 620–640 million square feet (msf), amid a moderation in sales velocity, according to ratings agency Icra.In FY25, sales stood at 643 msf, down 8 per cent YoY, following a sharp contraction in new launches and moderated demand in the affordable and mid-income segments. This slowdown came after the sector posted a robust compound annual growth rate of 26 per cent in area sales between FY22 and FY24.Icra noted: “Having seen a strong upcycle, the sector entered an equilibrium ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?