is leading the world in the development and deployment of autonomous driving technology
Waymo One provides more than 250,000 paid trips each week across Phoenix
and we’re preparing to bring our fully autonomous ride-hailing to Atlanta
We’re proud to bring this technology – once thought to be the stuff of science fiction – to more and more riders across this country
Scaling Waymo One and meeting the increasing demand of our riders requires a growing fleet of vehicles integrated with our generalizable <a href="https://waymo.com/waymo-driver/">Waymo Driver</a>
we’re investing in our American manufacturing operation with a new autonomous vehicle factory in Metro Phoenix with our partners at Magna
The Waymo Driver integration plant will build thousands of Jaguar I-PACEs equipped with our fully autonomous technology
this factory is a multi-million dollar investment and has created hundreds of jobs in Mesa
&quot;The new Waymo and Magna manufacturing facility in Mesa is the latest example of Arizona being the new home for technology to innovate and grow,” said Arizona Governor Katie Hobbs
“I’m proud to see autonomous vehicles on our streets every day
helping get people where they need to be safely
The new manufacturing facility will enhance this presence
and the local jobs it's creating will help Arizona’s tech economy continue to rise on the world stage.”
Waymo One has grown substantially in the last couple of years
We’ve also incrementally grown our commercial fleet as we’ve welcomed more riders
with over 1,500 vehicles across San Francisco
we received our final delivery from Jaguar
we will build over 2,000 more fully autonomous I-PACE vehicles for our fleet
“The Waymo Driver integration plant in Mesa is the epicenter of our future growth plans,” said Ryan McNamara
we’ve opened a manufacturing site that enables the cost efficiency
and capacity to scale our fleet to new heights.”
This facility’s flexible design also enables us to integrate the 6th-generation Waymo Driver on new vehicle platforms
With the need to build multiple platforms simultaneously and at higher volumes
the plant will introduce an automated assembly line and other efficiencies over time
When the facility is operating at full capacity
it will be capable of building tens of thousands of fully autonomous Waymo vehicles per year
the system needs to be validated and commissioned before carrying riders
we recently implemented new processes and efficiencies at the end of line that significantly reduce the time and cost required to enable a vehicle to carry riders
This new strategic capability allows vehicles assigned to our Phoenix fleet to drive themselves out of the facility and directly into service
these vehicles can pick up their first public passengers less than 30 minutes after leaving the factory
they can be deployed into public service in a matter of hours after being shipped to their local depot
This new manufacturing plant, combined with more efficient vehicle launch processes, means we can serve more riders faster. If you’re interested in experiencing a ride for yourself, download the <a href="https://waymo.com/waymo-one/">Waymo One</a> app today.
SALT LAKE CITY — A 33-year-old Magna man is facing criminal charges for allegedly going through &quot;great lengths to make arrangements to have his ex-wife and her mother killed,&quot; according to investigators
Orane James Spence was charged Friday in 3rd District Court with criminal solicitation to commit murder
a first-degree felony; and obstruction of justice
The investigation began when a confidential informant in Connecticut contacted the FBI
claiming Spence had asked him to murder someone
&quot;The FBI had several recorded conversations between the confidential informant and Spence
Spence and the confidential informant spoke in Jamaican Patois
Spence knew the confidential informant as an online gaming buddy but was unsure of his real name,&quot; the charges state
the confidential informant and Spence discussed the arrangements to have 'her' killed
Spence did not provide her name but provided several details
such as she would be dropping off the kids at his residence on Sunday at (7 p.m.)
Spence discussed how he wanted the murder to look like a robbery and agreed to pay the confidential informant $10,000 for the crime,&quot; charging documents continued
Spence also talked about leaving drugs at the scene to make the killing also look like the result of a drug deal gone bad
he allegedly talked about providing the confidential informant with a gun
Although Spence initially only talked about his ex being killed
he later &quot;requested that her mother also be killed,&quot; the charges state
&quot;Spence told the confidential informant that the moment she is out of the way
Spence told the confidential informant that if he couldn't do the crime
Agents learned that Spence had been recently divorced
and it was believed that the females he was making arrangements to kill were his ex-wife and her mother,&quot; charging documents state
Police say Spence's divorce was finalized on April 18
His ex-wife described to investigators &quot;a very controlling relationship with Spence that included domestic violence,&quot; the charges state
Spence told her that he had a dream where he had killed her.&quot;
When asked why she thought Spence wanted her dead
&quot;Spence is narcissistic enough that he thought she would never leave him
she was awarded the house and the custody of the children
(She) stated that Spence told her he would burn the house down so no one would get it and she believes this is why he wanted her dead,&quot; charging documents state
When police went to <a href="https://www.ksl.com/article/51302127/salt-lake-man-arrested-after-he-attempted-to-arrange-killing-police-say" rel="follow" target="_blank">arrest Spence</a> in April
they found an envelope with a large number of $100 bills in his bedroom
(TSX: MG; NYSE: MGA) today reported financial results for the first quarter ended March 31
"Our operating results for the first quarter of 2025 exceeded our expectations
with strong incremental margins on better than anticipated vehicle production and
we remain confident in our ability to execute on variables within our control in a complex and uncertain industry environment
We are actively advancing several initiatives including operational excellence
and reduced capital and engineering spending to mitigate the impact of tariffs
We remain focused on generating long-term free cash flow to invest for profitable growth and drive compelling capital return to shareholders."
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Magna’s CEO talks auto industry challenges and offers solutions to weather the storm
blustery mid-April Michigan morning when mega-supplier Magna CEO Swamy Kotagiri delivers a “Fireside Chat” to members of Detroit’s Automotive Press Assn.
but no shortage of angst for the auto industry and its suppliers in a turbulent time
The industry is going through a sweeping transformation focused on current trends of technology
consumer preferences and the fast-changing business landscape – all of which are driving increases in both R&amp;D and capital expenditures
He cites one study of 12 leading OEMs that showed some $200 billion in spending in 2024
a 40% increase from $140 billion in 2015 even while global volumes have been flat (and down in North America and Europe)
market share is fragmented and the number of platforms is increasing
Scale and stability to be efficient through the value chain.”
But while global OEMs planned roughly 120 million units last year
and increased spending on smaller volumes of units drives poor returns
technology – from electrification to assisted driving to even full autonomy – is rapidly evolving while those technology changes drive consumer preferences
Related:<a class="RelatedArticle-RelatedContent" href="/suppliers/mahle-urges-eu-to-scrap-ice-ban" target="_self" data-discover="true">Mahle Urges EU to Scrap ICE Ban</a>
“Expectations are increased,” Kotagiri says
and are expecting a lot of features in any price range
Convenience and customization features include entertainment
safety and more options of mobile media services
They have a truly three-dimensional chess board.” Also increasing dramatically
are applications of robotics and AI in manufacturing
These rapid technology advancements and changing consumer preferences are driving major shifts in the industry landscape
new vehicle architectures and new entrants without legacy constraints – and those new entrants are looking at a completely different approach with much less complexity to keep costs down
They’re coming to market faster and focusing on functionality rather than component specifications and a lot of component standardization
“I think they’re getting back to what I call systems thinking
which has a tremendous impact on minimizing or optimizing cost and time to market,” he says
“They are looking at it from a consumer perspective…what does the consumer need?…and giving freedom to suppliers
we used to call it simultaneous engineering at a systems level
reducing the number of components and design and validation time in addition to cost optimization
Related:<a class="RelatedArticle-RelatedContent" href="/suppliers/nvidia-adds-magna-to-adas-roster" target="_self" data-discover="true">NVIDIA Adds Magna to ADAS Roster</a>
now our complexities that have been there historically have been compounded
which means we need to spend more capital for infrastructure and/or product development.”
He points out that volume fluctuations of plus-or-minus 10% to 20% have been normal in the past
but that uncertainty is now at an all-time high
“We are seeing start-of-productions being delayed
programs canceled after investments have been made
volumes reduced after capacity is installed and OEMs hedging against risks
“They’re trying to protect their market share
and capacity is growing faster than the market can
so in some cases the volume fluctuations are as high as 50%
And all this is contributing to sub-optimal returns.”
Material and labor are typically planned two to three months in advance but
“the lack of schedule stability means you can’t plan workforce properly without cost and operational inefficiencies
The entire industry is working through some tough planning issues
we have complex and dynamic challenges resulting in a lot of turbulence.”
Related:<a class="RelatedArticle-RelatedContent" href="/suppliers/magna-reveals-performance-packed-phev-powertrain" target="_self" data-discover="true">Magna Reveals Performance-Packed PHEV Powertrain</a>
Kotagiri quotes consultant and educator Peter Drucker’s statement: “The greatest danger in times of turbulence is not the turbulence
while the industry is going through this major transformation
“How do we resist the urge to solve tomorrow’s problems with yesterday’s framework
And how do we find flexibility in the face of these unprecedented uncertainties
And how can we move away from being reactive in the short term
and move forward with an adaptive long-term strategy?”
The CEO contends the auto industry has typically been good at reacting and fighting through crises
accommodated and innovated through many crises in the past,” he notes
“but we have to think differently today than we have in the past
And we have to look at partnerships and alliances differently and manage the risks and problems we are facing and adopt long-term strategies as an industry together
“We have to collaborate in terms of design and manufacturing to minimize costly changes and have engineering and sourcing work together
how to think from an integrated systems perspective
“I strongly believe we can solve today’s challenges
but we need to think systems and to have more accurate expectations of volume forecast,” Kotagiri says
“Maybe we can phase in volumes and invest gradually in capacity
but that requires all parties to participate
we need to have the agility and flexibility to get to market quickly
We will get economies of scale and share the benefits of the upside
But (if) production falls below the expected range
there is a discussion of how to adjust accordingly.”
He concludes that Magna is focused on controlling the controllable
and we do that by managing our portfolio from a long-term perspective
We are leveraging our expertise and investing in our manufacturing
because I believe the next big transformation in the industry is not just in the product but what happens in the factories
These are very deliberate actions to position Magna for long-term success
not waiting for conditions to come up and then reacting
Magna CEO urges caution in reacting to tariff upheaval
Kotagiri then opens the floor to questions from APA attendees:
Q: What is the impact of tariffs on your business
KOTAGIRI: Our internal view is not to be reactive too soon
but they are not easy to change very quickly
We are having conversations with the OEMs on how they are changing their plans
and we are at the table with the policymakers to offer facts and data on the possible implications and looking for clear objectives in the long term
When you have a 25% import tariff for vehicles
they’ll have an impact on how you spread the cost that you’ve already invested
we’re going to see a lot of inefficiencies there
Q: What will a 25% tariff on parts do to the industry
KOTAGIRI: I wish I could give you a clean scenario
If you look at the complexity of the value chain and adding up or stacking all the tariffs when it all becomes clear
I believe it is untenable in the long term to manage that
If there is a road map to a clear objective of what we’re trying to achieve in this time period
I’m sure the industry will respond and can get there
But I really don&#x27;t see how you can mitigate the substantive short-term pain that is so akin to 2008-09
or is it more akin to the chip crisis in COVID
How do those patterns that we had to deal with compare to the current situation
And if you take in what’s happening with China and what the supply chain could be with whatever the percent of tariff is
that’s the reason why I’m not being dramatic when I say it’s like all those rolled into one: demand destruction
supply chain disruptions – it’s a really complex situation
but I don&#x27;t think it’s going to help the situation
There is some kind of certainty in where it’s going
but I don’t think that’s the long-term solution
Q: There has been a lot of talk of deglobalization
Magna is in China and has facilities in multiple countries
we’ve always looked dominantly locally for local manufacturing
we can manufacture in China for consumption in China
That philosophy applies to an automaker as a whole and follows the strategy of looking at North America as one region and Europe as another
We can adapt very quickly locally and once we get to parity in Mexico
Q: You mentioned the idea of sharing costs
we have come to an agreement with an OEM to put in capital
we have seen the same component going on both ICE and EV vehicles
That’s why I say you have to be training in sourcing together
It helps you know all parties in the ecosystem
we have had programs where it’s plus or minus X percent
It depends upon the competitive system and the magnitude of the investment
A lot of what Magna does is based on what the OEMs are doing
But we’re also focused on the assisted-driving piece
but at a different rate than everybody expected
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while non-GAAP EPS missed by 8 cents.Despite revenue declines
operational improvements in Power & Vision and Complete Vehicles slightly offset overall performance
with seating systems showing the largest profitability decline.MGA faces significant tariff risks
particularly affecting the automotive sector
and management's 2025 outlook may be overly optimistic without accounting for these impacts.Magna is streamlining operations and focusing on USMCA-compliant products to mitigate tariffs
Magna International Inc. (NYSE:<a href="https://seekingalpha.com/symbol/MGA" title="Magna International Inc.">MGA</a>) recently reported its <a href="https://seekingalpha.com/news/4439941-magna-international-reports-mixed-q1-results-updates-fy25-outlook">Q1 earnings</a>
so I thought I’d go through the numbers and give some thoughts on the current tariff situation and how it may affect the company’s performance in 2025
option or similar derivative position in any of the companies mentioned
and no plans to initiate any such positions within the next 72 hours
I am not receiving compensation for it (other than from Seeking Alpha)
I have no business relationship with any company whose stock is mentioned in this article
Seeking Alpha's Disclosure: Past performance is no guarantee of future results
No recommendation or advice is being given as to whether any investment is suitable for a particular investor
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Net sales decreased 8.21% year over year to $10.06 billion but surpassed the Zacks Consensus Estimate of $9.5 billion.
Magna International Inc. Price, Consensus and EPS Surprise
Magna International Inc. price-consensus-eps-surprise-chart | Magna International Inc. Quote
The Power &amp; Vision segment’s revenues declined year over year to $3.65 billion due to lower production and the end of production on certain programs. The metric surpassed the Zacks Consensus Estimate of $3.41 billion. Segmental adjusted EBIT rose from $98 million to $124 million due to lower production inputs, higher customer recoveries, lower net engineering costs, launch costs and warranty costs. The metric also topped the Zacks Consensus Estimate of $118 million. 
The Complete Vehicles segment’s revenues decreased 8% year over year to $1.28 billion due to lower assembly volumes. The metric outpaced the Zacks Consensus Estimate of $929 million. The segment reported an adjusted EBIT of $44 million, up from $27 million reported in the year-ago period and outpaced the Zacks Consensus Estimate of $8.91 million due to productivity and efficiency improvements.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Magna had $1.06 billion in cash and cash equivalents as of March 31, 2025, down from $1.25 billion as of Dec. 31, 2024. As of March 31, 2025, long-term debt was $3.89 billion, down from $4.13 billion as of Dec. 31, 2024.
In the reported quarter, cash provided from operating activities totaled $77 million, down from the year-ago figure of $261 million.
The company declared its quarterly dividend of 48.50 cents per common share, which will be paid on May 30, 2025, to shareholders of record as of May 16.
Magna now expects 2025 revenues in the band of $40-$41.6 billion, up from the previous target of $38.6-$40.2 billion. Adjusted EBIT margin is expected in the band of 5.1-5.6% compared with the previous estimate of 5.3-5.8%. Adjusted net income is estimated between $1.3 billion and $1.5 billion. Capex is estimated to be $1.7-$1.8 billion.
Magna carries a Zacks Rank #4 (Sell) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Autoliv Inc. ALV reported first-quarter 2025 adjusted earnings of $2.15 per share, which beat the Zacks Consensus Estimate of $1.72 and rose 37% year over year. The company reported net sales of $2.58 billion in the quarter. The figure beat the Zacks Consensus Estimate of $2.47 billion but fell 1.4% year over year.
Autoliv had cash and cash equivalents of $322 million as of March 31, 2025. Long-term debt totaled $1.57 billion. Operating cash flow in the quarter under review was $77 million and capital expenditure amounted to $93 million, resulting in a negative free cash flow of $16 million. In the quarter, ALV paid a dividend of 70 cents per share and repurchased 0.5 million shares.
Mobileye Global Inc. MBLY reported first-quarter 2025 adjusted earnings per share of 8 cents. The figure was in line with the Zacks Consensus Estimate. The company reported a loss of 7 cents per share in the year-ago quarter. Total revenues amounted to $438 million, beating the Zacks Consensus Estimate of $434 million. The metric also rose 83% year over year.
MBLY had cash and cash equivalents of $1.51 billion as of March 29, 2025, compared with $1.43 billion as of Dec. 28, 2024. Operating cash flow for the three months ended March 29, 2025, was $109 million. Capex was $14 million during the same time frame.
Group 1 Automotive GPI reported first-quarter 2025 adjusted earnings per share of $10.17, which beat the Zacks Consensus Estimate of $9.68 and rose 7.17% year over year. The automotive retailer registered net sales of $5.51 billion, beating the Zacks Consensus Estimate of $5.34 billion. The top line also rose from the year-ago quarter’s $4.47 billion.
Group 1 had cash and cash equivalents of $70.5 million as of March 31, 2025, up from $34.4 million as of Dec. 31, 2024. Total debt was $2.8 billion as of March 31, 2025, down from $2.91 billion as of Dec. 31, 2024.
This article originally published on Zacks Investment Research (zacks.com).
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— A missionary from Magna was killed after a car lost control and struck the 18-year-old while he was riding his bike on a sidewalk in North Carolina
Aleki Langi was on temporary reassignment in the Charlotte mission while awaiting a visa to serve in Kingston
Jamaica for The Church of Jesus Christ of Latter-day Saints
He was killed Thursday when the driver of a Polestar SUV veered onto the sidewalk where Langi was riding his bike with another missionary
Langi was pronounced dead on the scene by first responders
while the second missionary sustained minor injuries
The driver of the Polestar ran from the scene and has not been identified as of Friday afternoon
Langi's family in Utah shared a statement with FOX 13 News
"Aleki Faletoto Anderson Langi was respectful
He loved the Lord and was excited to serve a mission
We will miss him deeply but we find comfort in our Heavenly Father’s plan
Grateful for the time we were given with him."
was remembered Friday by the girls' basketball team
"We are saddened to hear of the passing of one of our Pirates ..
Aleki helped us in our 2023 season to prepare our team for games
His eagerness to help and his passion for learning left impressions on us all," the team wrote on social media
"Our prayers and condolences to the Langi family during this difficult time
Pirate Nation and Magna Community lost a great individual
Magna Vista’s Faith Fuller (13) celebrates a double during Friday’s game at Bassett
Fuller had four hits and four RBIs in the extra innings win
The Smith River Rivalry continues to be dominated by Magna Vista
and soccer teams all kept up their winning ways against crosstown rival Bassett as all four teams picked up wins over the Bengals on Friday
The Warriors baseball team started the day with a 4-2 win
Magna Vista’s softball team scored six runs in the eighth for an extra innings win
It’s the team’s third straight win in the rivalry
the Magna Vista boys soccer scored two unanswered goals on the way to a 2-1 victory
The night concluded with the Warriors girls soccer team picking up a 7-1 senior night win
marking a 12th straight win over their rivals
Lilly Secrest hit a 2-run double in the top of the eighth for the Warriors eventual game-winning runs
Kaylee Barrow led off the eighth with a single
and Morgan Smith moved her to third two batters later with a double to left field
Both came around to score on Secrest’s hit to left field
and Faith Fuller brought both runners home with a double to centerfield
Kaci Meade followed with a double to score Fuller
The game was a see-saw for the prior seven innings
Both teams plated one run each in the first inning
the Bengals looked to break the contest open with five runs
when Magna Vista scored five runs to again even the score
The Bengals plated one in the bottom of the fifth
and the Warriors responded with a run in the sixth to tie it up for a third time
The two teams were scoreless in the seventh to force extras
Morgan Smith threw a complete game for the Warriors
allowing just one earned run on four hits and two walks
Moore led the Bengals at the plate going 3-for-4 with two runs and two RBIs
2-3) will return home on Tuesday to take on Tunstall at 5 p.m
1-3) will also be at home on Wednesday against Mecklenburg County
Magna Vista’s Zander Ashley (1) attempts to turn a double play during Friday’s win at Bassett
With two outs in the top of the second inning
and Simeon Moore hit five straight singles for three runs and a lead the Warriors wouldn’t relinquish
Blaine Peters held the Bengals bats at bay
The Warriors senior allowed just one run on eight hits and one walk in 6.2 innings on the mound
He finished with three strikeouts in the pitching win
Bassett attempted a late comeback in the bottom of the seventh
Micah Ryan hit a double and Bryson Baker walked to load the bases
Tyler Byrd brought both runners home on a single to centerfield
But Magna Vista reliever Hunter Willard ended the rally by inducing a flyout for the final out and the win
Ryan and Turner Altice were both 2-for-4 at the plate for Bassett
Bryson Baker threw the first 3.2 innings for Bassett
allowing three runs on five hits and two walks with six strikeouts
The sophomore gave up just one hit with four strikeouts
2-3) will travel to Hooker Field on Tuesday to take on Martinsville at 5:30 p.m
6-0) will return home on Tuesday to take on Tunstall at 5 p.m
2RBI; Timothy Lewis 1-3; Turner Altice 2-3; Kevin Moran 1-3; Bryson St
Alfredo Carillo scored both goals for Magna Vista
The junior started the scoring 30 seconds into the contest
and scored the eventual game-winner on a penalty kick late in the first half
Bassett’s lone goal came midway through the first half from Demerius Lynch
Noah Stout had five saves in goal for the Warriors
8-0) will return to Smith River Sports Complex on Tuesday for a 7 p.m
4-4) will travel to Martinsville on Tuesday for a 7 p.m
Magna Vista’s Baylie Coleman dribbles up the field past Bassett defenders during Friday’s game at Smith River Sports Complex
Three Magna Vista seniors scored on senior night in the Warriors 7-1 victory over the Bengals
Senior Baylie Coleman contributed to four of her team’s goals
finishing with a game-high two goals and two assists
Rylee McMillon had a goal and two assists for the Warriors
and Eleanor Favero had three saves in goal
Magna Vista celebrated seven seniors prior to the game: Damya Kidd
7-0) will next travel to Tunstall on Tuesday for a 7 p.m
4-2) will return to Smith River Sports Complex on Tuesday to take on Martinsville at 6 p.m
Cara Cooper is the sports editor for the Martinsville Bulletin. She can be reached at <a href="mailto:cara.cooper@martinsvillebulletin.com">cara.cooper@martinsvillebulletin.com</a>
Email notifications are only sent once a day
While the Carlisle boys tennis team has learned perseverance on the court this season
their coach Doug Goldstein has persevered through his o&hellip;
and Luke Carter combined to throw a no-hitter and struck out all 15 outs of the Carlisle baseball team's 10-0 win o&hellip;
A penalty kick goal with 18 minutes remaining in Thursday’s contest at Martinsville High School became the game-winner for G.W.-Danville in a &hellip;
and Casey Thomas are inseparable off the field
and all putting up big numbers on it this spring as they lead the Ca&hellip;
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On May 5, 2025, TD Securities analyst Brian Morrison reaffirmed a &quot;Buy&quot; rating on Magna International (<a href="/stock/MGA/summary">MGA</a>, <a target="_blank" title href="/stock/MGA/financials" class="stock-link">Financial</a>)
The analyst maintains their positive stance on the stock
underscoring continued confidence in its market potential
In a recent update, TD Securities raised the price target for Magna International (<a href="/stock/MGA/summary">MGA</a>, <a target="_blank" title href="/stock/MGA/financials" class="stock-link">Financial</a>) from $44.00 to $45.00
with the price target now set at $45.00 USD
This change suggests that the analyst sees additional room for growth and values the company's prospects highly
Magna International (<a href="/stock/MGA/summary">MGA</a>, <a target="_blank" title href="/stock/MGA/financials" class="stock-link">Financial</a>)
consistently supported by TD Securities' favorable evaluation
continues to be a stock to watch in the market
Investors can consider this revised price target and maintained &quot;Buy&quot; rating as indicators of the company's robust performance outlook
Based on the consensus recommendation from 19 brokerage firms, Magna International Inc's (<a href="/stock/MGA/summary">MGA</a>, <a target="_blank" title href="/stock/MGA/financials" class="stock-link">Financial</a>) average brokerage recommendation is currently 2.9, indicating &quot;Hold&quot; status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
including challenges such as an elevated leverage ratio and growing slower than the broader market
the analyst tells investors in a post-earnings note
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Giant auto supplier Magna International views the financial and logistical threat of auto tariffs as an amalgamation of every major crisis the auto industry has faced in the past several years
Magna CEO Swamy Kotagiri said Tuesday at an Automotive Press Association event that tariffs on automotive imports is akin to hitting the industry with COVID-19
the chip shortage and the Great Recession all at once
because of the financial conditions — higher interest rates
people not buying cars — it was demand destruction
The chip crisis was all about balancing different models
a lot of start-stops in the factories,” Kotagiri said
“There’s announcements of (automaker) plants being shut down
I’m not being dramatic saying it’s all rolled into one
If someone has a great scenario plan for this
Magna employs more than 12,300 people in Michigan as of January and supplies parts to all the major carmakers
The Canadian company makes most vehicle components
including parts from electric drive systems to body panels
and operates 341 facilities across 28 different countries
While the automakers themselves bear a larger burden than suppliers when it comes to moving materials across borders
Kotagiri said all parties suffer when costs increase for any member of the integrated automotive industry
“There’s a lot that we do in all parts of the region
Our policy is looking at North America as a whole — the footprints of the (automakers) were set this way,” he said
How do you spread a cost you’ve already invested?”
Lack of clarity on when tariffs will be applied
what will be impacted and material costs makes it even more difficult to plan production to fulfill contracts with automakers
He added that Magna is “at the table with the policymakers and hoping to have a clear objective in the long term.”
would probably take much of Trump’s second term
“To build a plant like that to be operational from breakdown to operation is somewhere in the range of two years
You’re talking about plants that are a million square feet
We’re not talking hundreds of millions — we’re talking in billions
It’s not a flip of the switch,” Kotagiri said during the event at Magna's U.S
“If you’re looking at a policy objective — you need this much content
But we have to look at it from a pragmatic perspective.”
Kotagiri discussed the hurdles of supplying automakers that make rapid changes to their production plans
Automaker hedging is to blame — where partners plan for a variety of powertrain options and features hoping to cover their bases depending on the features consumers want at reasonable price points to maintain market share
Auto suppliers tend to be less flexible than automakers when it comes to shifting production for a variety of reasons
Those companies sink capital in materials and labor far before in advance
which is considered “trapped” capital that leaves the company vulnerable to operational inefficiencies and higher costs
Automakers are more inclined than ever to lower production expectations to maybe 66% of initial objectives
if a contract for 900 million battery enclosures requires the company to make key investments to meet that production capacity for the life of that program
If it's adjusted to only 66% of that initial investment based on customer demand
suppliers like Magna are left in the lurch
industry forecasts of auto demand could be even lower
around 33% on average of the company's installed capacity
A failure to accurately predict customer demand or reacting too quickly to shifts creates a lot of wasted time and effort
“How do we safeguard operations as a whole from volatility
We need more accurate expectations of volume,” he said
“Even if you have a very disciplined investment strategy
we have to acknowledge a deeper issue with our industry is you need to think of an integrated systems strategy and some sort of production volume alignment.”
Jackie Charniga covers General Motors for the Free Press
2025  (GLOBE NEWSWIRE) -- Magna International Inc
Please click <a href="https://www.globenewswire.com/Tracker?data=XOIEWQT7zE0lWSzfn1F0IIVaAJDDIQggzbbv4y601jkzwLSxKMQljmidDobhYGxxL3yNvi7C8SvhqJRJctMV8s8lWEtOgaPnb84xh49r_jp7AV7Lj6UhoOu8lbIc5jnicAuz9ZZ8ko965tiALsKE5npslB37Tj97E84w_N_XH8c=" rel="nofollow" target="_blank" title="HERE">HERE</a> for full first quarter MD&amp;A and Financial Statements
We posted sales of $10.1 billion for the first quarter of 2025
a decrease of 8% from the first quarter of 2024
The lower sales largely reflects a 3% decrease in global light vehicle production
including 8% and 5% lower production in Europe and North America
partially offset by 2% higher production in China
sales were negatively impacted by lower complete vehicle assembly volumes
including as a result of the end of production of the Jaguar I-Pace and E-Pace
the end of production of certain programs and the net weakening of foreign currencies against the U.S
These were partially offset by the launch of new programs
Adjusted EBIT decreased to $354 million in the first quarter of 2025 compared to $469 million in the first quarter of 2024
net(2) and Amortization of acquired intangibles totaled $79 million (2023 - $384 million) and on an after-tax basis $73 million (2023 - $302 million)
Income from operations before income taxes increased to $225 million for the first quarter of 2025 compared to $34 million in the first quarter of 2024
net and Amortization of acquired intangibles from both periods
income from operations before income taxes decreased $114 million in the first quarter of 2025 compared to the first quarter of 2024
largely reflecting the decrease in Adjusted EBIT
Net income attributable to Magna International Inc
was $146 million for the first quarter of 2025 compared to $9 million in the first quarter of 2024
after tax and Amortization of acquired intangibles from both periods
net income attributable to Magna International Inc
decreased $92 million in the first quarter of 2025 compared to the first quarter of 2024
Diluted earnings per share were $0.52 in the first quarter of 2025
compared to $0.03 in the comparable period
Adjusted diluted earnings per share were $0.78
compared to $1.08 for the first quarter of 2024
we generated cash from operations before changes in operating assets and liabilities of $547 million and used $470 million in operating assets and liabilities
Investment activities for the first quarter of 2025 included $268 million in fixed asset additions
$4 million for business combinations and $1 million in private equity investments
including $136 million in dividends and $51 million in share repurchases
Our Board of Directors declared a first quarter dividend of $0.485 per Common Share
2025 to shareholders of record as of the close of business on May 16
For further details on our segment results
please see our Management's Discussion and Analysis of Results of Operations and Financial Position and our Interim Financial Statements
We disclose a full-year Outlook annually in February with quarterly updates
The following Outlook is an update to our previous Outlook in February 2025
Light vehicle production assumptions reflect near-term original equipment manufacturer  ["OEM"]  production release information
including announced production downtime at certain OEM assembly facilities
but do not include the potential impact of tariffs and other trade measures on vehicle costs
nor the impact of these on vehicle production
Our Outlook is intended to provide information about management's current expectations and plans and may not be appropriate for other purposes
Although considered reasonable by Magna as of the date of this document
the 2025 Outlook above and the underlying assumptions may prove to be inaccurate
our actual results could differ materially from our expectations as set forth herein
The risks identified in the “Forward-Looking Statements” section below represent the primary factors which we believe could cause actual results to differ materially from our expectations
Our business and operating results are dependent on light vehicle production by our customers in three key regions – North America
While we supply systems and components to many OEMs globally
we do not supply systems and components for every vehicle
nor is the value of our content consistent from one vehicle to the next
customer and program mix relative to market trends
as well as the value of our content on specific vehicle production programs
OEM production volumes are aligned with vehicle sales levels and thus affected by changes in such levels
production volumes are typically impacted by a range of factors
supplier or sub-supplier disruptions; free trade arrangements and tariffs; relative currency values; commodities prices; supply chains and infrastructure; labour disruptions and the availability and relative cost of skilled labour; regulatory frameworks; and other factors
Overall vehicle sales levels are significantly affected by changes in consumer confidence levels
which may in turn be impacted by consumer perceptions and general trends related to the job
as well as other macroeconomic and political factors
Other factors which typically impact vehicle sales levels and thus production volumes include: vehicle affordability; interest rates and/or availability of credit; fuel and energy prices; relative currency values; uncertainty as to the pace of EV adoption; and other factors
NON-GAAP FINANCIAL MEASURES RECONCILIATION
In addition to the financial results reported in accordance with U.S
this press release contains references to the Non-GAAP financial measures reconciled below
We believe the Non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company’s financial position and results of operations
and to improve comparability between fiscal periods
management believes that Adjusted EBIT and Adjusted diluted earnings per share are useful measures in assessing the Company’s financial performance by excluding certain items that are not indicative of the Company's core operating performance
The presentation of Non-GAAP financial measures should not be considered in isolation
or as a substitute for the Company’s related financial results prepared in accordance with U.S
Certain of the forward-looking financial measures above are provided on a Non-GAAP basis
We do not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with U.S
To do so would be potentially misleading and not practical given the difficulty of projecting items that are not reflective of on-going operations in any future period
INVESTOR CONTACTLouis Tonelli, Vice-President, Investor Relations <a href="https://www.globenewswire.com/Tracker?data=-MOS3NRd0nMUInmHr1JEFW9KgMgcKfBI2qOZW_WyzvLpvBML8EH6KSIhgc5cutP5gs7DfiX-3c3SiAGHsm-qtiSY9Y06gRgSacXMqcMKqf9m3KNFp8F7oYDptG3etSrj" rel="nofollow" target="_blank" title="louis.tonelli@magna.com">louis.tonelli@magna.com</a> │ 905.726.7035
MEDIA CONTACT Tracy Fuerst, Vice-President, Corporate Communications &amp; PR <a href="https://www.globenewswire.com/Tracker?data=mkzcvKWgkrZ_wQFy9bxxFSHqP5844771y3RnzoFinnDiJLDXKo_t14DWmVNd9QGvZNy_6dkmo6tElJjcU7O8b0eor8AyOpjhLdbRvYBUD4M=" rel="nofollow" target="_blank" title="tracy.fuerst@magna.com">tracy.fuerst@magna.com</a> │ 248.761.7004
TELECONFERENCE CONTACTNancy Hansford, Executive Assistant, Investor Relations <a href="https://www.globenewswire.com/Tracker?data=OsiHzWCOe5Y73oEOJrMJ21Kd5Em2H62yailH1qTHFip22fWiU0IFSVDUhe423d4COxQCkFcsbMm56nGnGXqmjPEt06lb8gehuvmXZi_eiMUZ88XvYFfMcbPl9-Fx2ASZ" rel="nofollow" target="_blank" title="nancy.hansford@magna.com">nancy.hansford@magna.com</a> │ 905.726.7108
OUR BUSINESS(7)Magna is more than one of the world’s largest suppliers in the automotive space
We are a mobility technology company built to innovate
entrepreneurial-minded team of approximately 167,000(8) employees across 342 manufacturing operations and 103 product development
engineering and sales centres spanning 28 countries
our ecosystem of interconnected products combined with our complete vehicle expertise uniquely positions us to advance mobility in an expanded transportation landscape
For further information about Magna (NYSE:MGA; TSX:MG), please visit <a href="https://www.globenewswire.com/Tracker?data=QANKO8NESIaZQ0bGJdJWRkn2zDjQFJDOu40NaknND2ArBYgu7muZmxeAd3gBMbjRzb_FX5CPLCSLGDj5aH_6Ft8U5ZslRWxyODcLvwYAwo2RNCCHS1pKl2fXfIvxh2ELc2NNdJ_GWX6q9fpC6v8m-kc28EcULXTVvJjJ_qN-D54bL9BLP5T1ezhsUVIZB0U-BJGpEvBHl-KXWXyYwaegV4dW5RyPAQvw10SQyTHO9j0=" rel="nofollow" target="_blank" title="www.magna.com">www.magna.com</a> or follow us on social
Certain statements in this press release constitute "forward-looking information" or "forward-looking statements" (collectively
Any such forward-looking statements are intended to provide information about management's current expectations and plans and may not be appropriate for other purposes
Forward-looking statements may include financial and other projections
as well as statements regarding our future plans
strategic objectives or economic performance
or the assumptions underlying any of the foregoing
and other statements that are not recitations of historical fact
"target" and similar expressions suggesting future outcomes or events to identify forward-looking statements
The following table identifies the material forward-looking statements contained in this document
together with the material potential risks that we currently believe could cause actual results to differ materially from such forward-looking statements
Readers should also consider all of the risk factors which follow below the table:
Forward-looking statements are based on information currently available to us and are based on assumptions and analyses made by us in light of our experience and our perception of historical trends
current conditions and expected future developments
as well as other factors we believe are appropriate in the circumstances
While we believe we have a reasonable basis for making any such forward-looking statements
they are not a guarantee of future performance or outcomes
In addition to the factors in the table above
whether actual results and developments conform to our expectations and predictions is subject to a number of risks
and the effects of which can be difficult to predict
In evaluating forward-looking statements or forward-looking information
we caution readers not to place undue reliance on any forward-looking statement
readers should specifically consider the various factors which could cause actual events or results to differ materially from those indicated by such forward-looking statements
assumptions and uncertainties above which are:
Magna International Inc. (<a href="/stock/MGA/summary">MGA</a>, <a target="_blank" title href="/stock/MGA/financials" class="stock-link">Financial</a>) saw its price target raised to $38 from $33 by CIBC analyst Krista Friesen
who maintains a Neutral rating on the stock
This adjustment comes after Magna’s first-quarter performance and updated guidance failed to meet expectations
The company is grappling with issues beyond tariffs
such as a high leverage ratio and a slower growth pace compared to the wider market
according to the analyst's observations in a post-earnings report
Based on the consensus recommendation from 19 brokerage firms, Magna International Inc's (<a href="/stock/MGA/summary">MGA</a>, <a target="_blank" title href="/stock/MGA/financials" class="stock-link">Financial</a>) average brokerage recommendation is currently 2.9
For the complete transcript of the earnings call, please refer to the <a href="https://www.gurufocus.com/stock/MGA/transcripts/2826524" target="_blank" rel="noreferrer noopener">full earnings call transcript</a>
BMO Capital has reduced its price target for Magna (<a href="/stock/MGA/summary">MGA</a>, <a target="_blank" title href="/stock/MGA/financials" class="stock-link">Financial</a>) from $47 to $41 while maintaining an Outperform rating on the stock
The auto parts sector is experiencing historically low valuations
there remains a potential risk if future volumes are impacted negatively due to tariff-related issues
This concern was highlighted by the analyst in a recent communication to investors
On May 5, 2025, BMO Capital analyst Tamy Chen maintained an &quot;Outperform&quot; rating on Magna International (<a href="/stock/MGA/summary">MGA</a>, <a target="_blank" title href="/stock/MGA/financials" class="stock-link">Financial</a>)
reflecting confidence in the company's performance
This decision aligns with the previous stance taken by the analyst
indicating consistent expectations for the company in the near term
While the rating remained unchanged, the analyst lowered the price target for Magna International (<a href="/stock/MGA/summary">MGA</a>, <a target="_blank" title href="/stock/MGA/financials" class="stock-link">Financial</a>) from $47.00 USD to $41.00 USD
suggesting a recalibration of expectations considering current market conditions
the &quot;Outperform&quot; rating highlights an anticipated positive trajectory for the stock in the market
Investors and market participants are advised to consider these updates as part of their decision-making process regarding Magna International (<a href="/stock/MGA/summary">MGA</a>, <a target="_blank" title href="/stock/MGA/financials" class="stock-link">Financial</a>)
The maintained rating of &quot;Outperform&quot; by BMO Capital demonstrates a continued belief in the company's ability to exceed market performance
TD Securities has raised its price target for Magna (<a href="/stock/MGA/summary">MGA</a>, <a target="_blank" title href="/stock/MGA/financials" class="stock-link">Financial</a>) to $45
while maintaining a Buy rating following the company's latest first-quarter report
Despite some ongoing economic uncertainties
the analyst highlights that Magna is approaching a turning point in financial forecasts
supported by increased operational efficiencies and better clarity on tariffs
Achieving the lower end of its guidance could present a compelling valuation
potentially boosting investor sentiment in this underrepresented sector
Magna International (<a href="/stock/MGA/summary">MGA</a>, <a target="_blank" title href="/stock/MGA/financials" class="stock-link">Financial</a>) has recently caught the attention of investors as CIBC analyst Krista Friesen issued an update on the stock's price target
the price target for MGA has been raised from $33.00 to $38.00
This adjustment represents a 15.15% increase in the price target
The rating for Magna International (<a href="/stock/MGA/summary">MGA</a>, <a target="_blank" title href="/stock/MGA/financials" class="stock-link">Financial</a>)
remains unchanged at &quot;Neutral&quot; as per the analysis provided by CIBC
The previous rating also held a &quot;Neutral&quot; stance
and reflects CIBC's maintained position towards the stock despite the amended price target
Investors and stakeholders of Magna International (<a href="/stock/MGA/summary">MGA</a>, <a target="_blank" title href="/stock/MGA/financials" class="stock-link">Financial</a>) will likely keep a close watch on market movements and additional analyst insights following this update by CIBC analyst Krista Friesen
SALT LAKE CITY — An 18-year-old missionary from Magna who was serving in the North Carolina Charlotte Mission was killed on Thursday after being hit by a car
Elder Aleki Faletoto Anderson Langi's family said in a statement that he was &quot;respectful
&quot;He loved the Lord and was excited to serve a mission
but he brought a togetherness to our family that was desperately needed
His presence and spirit will be greatly missed in our lives and home,&quot; the family said following an announcement of his death from The Church of Jesus Christ of Latter-day Saints
&quot;It is with much sadness that we share with you that a tragic accident in North Carolina has claimed the life of a young missionary,&quot; Sam Penrod
A driver lost control and veered onto the sidewalk and hit two of three missionary companions
A second missionary was treated at a hospital for minor injuries and the third was not injured
Elder Langi began his missionary service in March
leaving the Magna 2nd Ward in the Salt Lake Utah West Stake
He served on a temporary assignment in North Carolina while waiting for a visa to serve in the Jamaica Kingston Mission
&quot;We extend our deepest condolences and love to Elder Langi's family
friends and fellow missionaries during this difficult time
We pray that they will each feel the Savior's comfort and peace as they mourn his passing and honor his dedicated missionary service,&quot; the church statement said
(KUTV) — A Magna 18-year-old  serving a mission for The Church of Jesus Christ of Latter-day Saints was killed in a freak crash in North Carolina
Aleki Langi was presumably on a sidewalk with two companion missionaries on Thursday when the incident happened
the driver of a vehicle &quot;apparently lost control and veered onto the sidewalk,&quot; striking and killing Langi and injuring one of the other two missionaries
The injured missionary was treated at the hospital and later released
Langi had been serving in the field for about two months
 He had been called to serve in the Jamaica Kingston Mission
but was temporarily assigned to the Charlotte North Carolina Mission while his visa was being processed
&quot;We extend our deepest condolences and love to Elder Langi’s family
and fellow missionaries during this difficult time,&quot; a church spokesman stated
&quot;We pray that they will each feel the Savior’s comfort and peace as they mourn his passing and honor his dedicated missionary service.&quot;
including whether the driver was injured or if the person was facing any potential penalties
were not included in the church&#x27;s statement
The expected tariff cost is significantly lower than the $4 billion to $5 billion crosstown rival General Motors estimates
which Ford attributes to its higher mix of U.S.-built vehicles
Our fiscal year-end is December 31st and reported in U.S
<a href="https://www.sec.gov/cgi-bin/browse-edgar?CIK=MGA&amp;action=getcompany&amp;owner=exclude" target="_blank" data-sf-ec-immutable="">Click here for</a> Form 40-F dated March 28
In Canada, we trade on The Toronto Stock Exchange (TSX). Since 1997, publicly traded companies in Canada, including Magna, have filed electronically certain continuous disclosure documents on the System for Electronic Document Analysis and Retrieval (SEDAR+) which can be accessed at <a href="https://www.sedarplus.ca/landingpage/" target="_blank" data-sf-ec-immutable="">www.sedarplus.ca/</a>
The following link will open a new browser window and take you directly to the SEDAR+ website
In the United States, we trade on the New York Stock Exchange (NYSE). Since 2002, Magna has voluntarily filed electronically certain continuous disclosure documents on the SEC's Electronic Data Gathering, Analysis and Retrieval System (EDGAR) which can be accessed at <a href="https://www.sec.gov/edgar/search/" target="_blank" data-sf-ec-immutable="">www.sec.gov/edgar/search/</a>
The following link will open a new browser window and take you directly to the EDGAR website
You can stay informed about the latest developments at Magna via e-mail alerts
Magna International is one of the largest and most diversified auto-parts suppliers in the world
but that size does not guarantee economic profit
While breadth in products and services can be advantageous regarding cross-selling—commercial activities that bolster content per vehicle and market penetration—we don’t see margins getting high enough to merit moatworthy returns on invested capital because of the multiple competitors in Magna’s largest segments
The company enjoys customer switching costs
which are common to auto suppliers with moats
but its financial performance does not quite merit one
Magna's revenue mix is over 70% from Detroit Three and German automakers that will suffer from US-imposed tariffs if they last for all of President Donald Trump's term
We’d like to share more about how we work and what drives our day-to-day business
How we use your information depends on the product and service that you use and your relationship with us
To learn more about how we handle and protect your data, visit our <a href="/company/privacy-center">privacy center</a>
Read our <a href="/editorial-policy">editorial policy</a> to learn more about our process
reported its first-quarter profit rose compared with a year ago as sales decreased
TORONTO - The head of Magna International Inc
is cheering a tariff exemption for automobile parts compliant with the Canada-U.S.-Mexico Agreement
had said last month it would start charging a 25 per cent tariff on all imported auto parts by May 3
Customs and Border Protection guidance released Thursday provided clarification
"Definitely that gives a lot more certainty and relief in our planning process," said Magna chief executive Swamy Kotagiri on an earnings call Friday
There is however still a great deal of uncertainty over the future of tariffs on auto parts
along with border taxes for the industry in general
but he said the company is assuming the exemption is here to stay
"That is the assumption that we're going with
and hope to get some more clarity and certainty on that decision."
Tariffs are expected to add about $250 million in costs for the auto-parts giant this year
but Kotagiri said the company's intention is to pass on all costs to customers
The company is also looking for ways to boost the share of CUSMA-complaint parts headed to the U.S
but that it requires working with suppliers and customers to do so
We will continue to evaluate the full scope of these opportunities," said Kotagiri
Magna's customers — the major automakers — are also looking at ways to cut tariff costs but don't seem to be rushing to make big investments and production changes
"It's only fair to say that all scenarios are being considered
Given the capital allocation and the magnitude of what's being discussed
they're looking at it very carefully," Kotagiri said
Companies are looking to rebalance production plans as a first option
as seen in decisions by automakers to adjust schedules rather than wholesale moves
GM Canada confirmed it planned to cut a shift from its Oshawa Assembly Plant in Ontario because of the tariffs
but that it remained committed to the plant
Stellantis said Thursday that it was halting its auto assembly plant in Windsor
after also shutting it for two weeks when Trump first imposed the tariffs in early April
So far the tariffs have not created a significant financial hit to Magna
though its sales were down in its latest quarter
The company reported a first-quarter profit of US$146 million
up from US$9 million in the same quarter last year
Sales for the quarter totalled US$10.1 billion
The company did provide revised guidance for the year that showed projected sales rising by US$1.4 billion to between US$40 billion and US$41.6 billion
but it excludes the potential impact of tariffs
This report by The Canadian Press was first published May 2
Alberta New Democratic delegates have voted to allow provincial members to opt out&hellip;
MPs are set to return to the House of Commons at the end of May
The Canadian Press is a member of <a href="https://ifcncodeofprinciples.poynter.org/profile/the-canadian-press">the International Fact-Checking Network</a>
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Magna International&#x27;s earnings slipped, yet the automotive supplier is optimistic, revising annual <a data-state="closed" class="sc-ce6d94d2-0 fFXCdC sc-ce6d94d2-2 eSrGfF" href="/glossary/sales">sales</a> projections upward thanks to favorable currency impacts
Magna International&#x27;s earnings fell short of expectations
with adjusted earnings at $0.78 per share versus an expected $0.85
The upside is an increased full-year sales forecast between $40 billion and $41.6 billion
driven by favorable currency exchange rather than business growth
reflecting concerns about tariffs and earnings declines
but challenges persist with global vehicle production down 3%
Magna aims to counteract tariff costs and stay competitive in key segments
Investors should watch Magna&#x27;s <a data-state="closed" class="sc-ce6d94d2-0 fFXCdC sc-ce6d94d2-2 eSrGfF" href="/glossary/stock">stock</a> as the company navigates trade policies and currency fluctuations
Missed earnings and production slumps impact sentiment
but Magna’s tariff strategies could stabilize future performance
The bigger picture: Global auto dynamics in flux
Magna’s situation reflects global auto industry trends amid trade shifts
While currency strength offers temporary gains
sustained growth depends on overcoming tariffs and production declines in major markets
Industry and policy leaders must adapt strategies accordingly
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Troy — Uncertainty augmented by President Donald Trump's tariff policy is "adversely impacting" the auto industry
the CEO of major Canadian automotive supplier Magna International Inc
speaking at an Automotive Press Association event
likened the circumstances to both the 2008-09 economic downturn and the pandemic-induced microchip shortage in one: He predicted softening demand and production that stops and starts because duties create supply chain instability
"That's just the beginning," Kotagiri said of temporary <a href=https://www.detroitnews.com/story/business/autos/2025/04/03/stellantis-pausing-some-canadian-mexican-assembly-plants-as-tariffs-arrive/82789340007/ data-type=link data-id=https://www.detroitnews.com/story/business/autos/2025/04/03/stellantis-pausing-some-canadian-mexican-assembly-plants-as-tariffs-arrive/82789340007/>plant shutdown announcements </a>like at Stellantis NV that already have been made
"Certainty on policy in a time frame is the most important thing for the industry."
Trump earlier this month imposed 25% tariffs on vehicles imported into the United States
and 25% tariffs on certain auto parts are expected to go into effect May 3
Trump insists the import taxes will increase U.S
create well-paying manufacturing jobs and raise federal revenues to lower taxes and reduce national debt
Kotagiri said the tariffs haven't shifted the long-term strategy of the manufacturer of seating
powertrains and more — at least "not yet," he said
"We have the footprint in all regions," he said
"Although it's not very easy to change very quickly
and we are having conversations with the OEMs — how they are changing their plans
We are at the table with the policymakers to offer facts and data and the possible implications
and hopefully looking for a clear objective in the long term."
But even if the Trump administration identified such a target
it won't happen without "substantive short-term pain," Kotagiri said
Magna has 140 manufacturing facilities and more than 73,000 employees throughout Canada
To build a brand new plant from breaking ground to opening would be around two years after permitting
Canada has retaliated with 25% tariffs on vehicles imported from the United States
Kotagiri said he sees this as a short-term response to the circumstance but that it won't help the situation
are not the only contributor to uncertainty for the industry
Frequent fluctuations in production forecasts by automakers
are creating expensive inefficiencies that need to be addressed
were forecasting global vehicle production at 120 million last year and only produced 80 million
He characterized the new normal for the run rate of new vehicle launches at 33% of original expectations
"And we are seeing standard productions being delayed
Programs are being canceled after the investments have been made
Volumes are being reduced after the capacity is installed
and the OEMs are hedging against adaption risks for both ICE and EV."
He emphasized the the industry must move to greater collaboration
systems engineering that simplifies products like those of startup competitors
and sharing components between vehicles of differing powertrains and platforms to create mass parts production to lower costs
"We might have to think a little bit differently today than we have done in the past," Kotagiri said
<a href="/docs/default-source/2025-news---press-releases/magna-news-release_magna-and-nvidia-team-up-to-advance-next-gen-automotive-technologies_final.pdf?sfvrsn=e170fb00_1" title="Magna News Release_Magna and NVIDIA Team Up to Advance Next-Gen Automotive Technologies_FINAL" data-sf-ec-document-immutable="true" target="_blank">Download the PDF of the release</a>
today announced a program in collaboration with NVIDIA to integrate the NVIDIA DRIVE AGX platform within the company&rsquo;s next generation of advanced technology solutions
The next-generation NVIDIA DRIVE AGX Thor system-on-a-chip (SoC)
which runs the safety-certified DriveOS operating system and is built on the Blackwell GPU architecture
consolidates increased functionality to improve efficiency
This will help Magna enable cutting-edge AI and varying levels of autonomous driving (AD) and interior cabin applications
Magna will develop and test the latest advancements in L2+ through L4 active safety solutions on DRIVE Thor
which helps position Magna as a leader in automotive electronics and AD solutions
By utilizing the accelerated compute performance and scalability afforded by this next-generation SoC
these solutions aim to enhance vehicle safety
"Combining NVIDIA accelerated compute and AI capabilities with Magna&rsquo;s extensive automotive expertise and innovation
we aim to explore new standards for next-generation software-defined vehicle intelligence and autonomy,&rdquo; said Steven Jenkins
Vice President of Technology Strategy at Magna Electronics
&ldquo;Our collaboration allows us to develop market applications for AI-powered solutions that could redefine the driving experience and address the evolving demands of the automotive industry.&rdquo;
integrating and launching advanced features such as adaptive cruise control
Highway and Urban Navigate-on-Autopilot and interior cabin AI companion functionalities positions the company well for this pilot program
This initiative focuses on solving the complexity of computing availability with performance for integrating ADAS
flexible and customizable system solutions that meet specific market needs and regulatory requirements
&ldquo;As the automotive industry transitions to safer
more intelligent vehicles with autonomous driving capabilities
our collaboration with Magna is the latest in our endeavors to bring our safety-certified in-vehicle accelerated compute and AI to the transportation industry,&rdquo; said Ali Kani
&ldquo;By combining core technologies and Magna's integration expertise
we aim to shape the future of mobility.&rdquo;
NVIDIA DRIVE AGX Thor delivers up to 1,000 trillion operations per second of AI compute power
featuring 8-bit floating point support optimized for transformer models
large language models and generative AI workloads
Magna plans to unveil a working demonstration platform expected in Q4 2025
Magna will tap NVIDIA Drive-OS for development
For more information on Magna&rsquo;s full suite of active safety, interior cabin and AD solutions, visit the company&rsquo;s <a href="/products/electrical-electronics/adas-automated-driving">product page</a>
<a href="https://cdn.mediavalet.com/usil/mediamanager/gYynurhnAEq_zeG8mwLOhQ/ya7Z9EW3z0CXB2NJh4DOJg/Large/NVIDIA_Release-01.jpeg" target="_blank" data-sf-ec-immutable="">Magna and NVIDIA collaborate to deliver AI-powered solutions for next-gen vehicle intelligence and autonomy</a> 
<a href="https://cdn.mediavalet.com/usil/mediamanager/WAzpRjmJ30CdQUCRc43hPA/GNaiLNDELUeK2g9qI8r5zA/Large/NVIDIA_Release-02.jpeg" target="_blank" data-sf-ec-immutable="">Magna's extensive automotive expertise and innovation will be combined with NVIDIA's accelerated compute and AI capabilities</a> 
<a href="https://cdn.mediavalet.com/usil/mediamanager/MH2wiJV8ikiZplgUCvr3Aw/Sipmim8uO0OHzQd5ydv01A/Large/NVIDIA_Release-03.jpeg" target="_blank" data-sf-ec-immutable="">Magna and NVIDIA's collaboration aims to redefine the driving experience and address evolving demands in the automotive industry</a> 
<a href="https://cdn.mediavalet.com/usil/mediamanager/J6-19D208UaGFB-Pc_2WhA/_nt7jwf9UE6omAAFx_FcTA/Large/NVIDIA_Release-04.jpeg" target="_blank" data-sf-ec-immutable="">The in-vehicle accelerated compute platform will enable advanced active safety and comfort functions, interior cabin AI solutions, and more</a> 
<a href="https://cdn.mediavalet.com/usil/mediamanager/UZki8twf-0mjrf37xGlaZg/UNY81mjfJECEyXEbxXZwgw/Large/NVIDIA_Release-05.jpeg" target="_blank" data-sf-ec-immutable="">Magna will develop and test advancements in L2+ through L4 active safety solutions on DRIVE Thor</a> 
<a href="https://cdn.mediavalet.com/usil/mediamanager/uQrkCCeM-E6sivq2O4bGDA/_3gengv-dUufIpqW8f4uEQ/Widescreen1080p/Magna%20Product%20Highlight%20-%20Final_March%202025.mp4" target="_blank" data-sf-ec-immutable="">Magna and NVIDIA collaboration video</a> 
ABOUT MAGNAMagna is more than one of the world&rsquo;s largest suppliers in the automotive space
entrepreneurial-minded team of over 170,000 employees across 341 manufacturing operations and 106 product development
THIS RELEASE MAY CONTAIN STATEMENTS WHICH CONSTITUTE &ldquo;FORWARD-LOOKING STATEMENTS&rdquo; UNDER APPLICABLE SECURITIES LEGISLATION AND ARE SUBJECT TO
THE CAUTIONARY DISCLAIMERS THAT ARE SET OUT IN MAGNA&rsquo;S REGULATORY FILINGS
PLEASE REFER TO MAGNA&rsquo;S MOST CURRENT MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL POSITION
ANNUAL INFORMATION FORM AND ANNUAL REPORT ON FORM 40-F
AS REPLACED OR UPDATED BY ANY OF MAGNA&rsquo;S SUBSEQUENT REGULATORY FILINGS
INCLUDING THE RISK FACTORS THAT COULD CAUSE ACTUAL EVENTS TO DIFFER MATERIALLY FROM THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS
THESE DOCUMENTS ARE AVAILABLE FOR REVIEW ON MAGNA&rsquo;S WEBSITE AT WWW.MAGNA.COM
INVESTOR CONTACTLouis Tonelli, Vice-President, Investor Relations<a href="mailto:louis.tonelli@magna.com">louis.tonelli@magna.com</a>
MEDIA CONTACTTracy Fuerst, Vice-President, Corporate Communications &amp; PR<a href="mailto:tracy.fuerst@magna.com">tracy.fuerst@magna.com</a>, 248-761-7004
&copy; 2025 Magna International Inc. All Rights Reserved.
Here is a breakdown of the information Magna International presented to its investors
is a leading global automotive supplier and mobility technology company
known for its innovative solutions in vehicle systems and components
with operations spanning across 28 countries
Magna reported a decrease in sales by 8% to $10.1 billion compared to the same period in 2024
largely due to a decline in global light vehicle production
the company exceeded its operating expectations
driven by strong incremental margins and better-than-anticipated vehicle production
Key financial metrics for the quarter included a net income of $146 million
a significant increase from $9 million in the previous year
adjusted EBIT declined to $354 million from $469 million
reflecting reduced earnings on lower sales and higher warranty costs
Magna returned $187 million to shareholders through dividends and share repurchases during the quarter
Magna remains focused on operational excellence and strategic initiatives to navigate the complex industry environment
with a steady outlook for adjusted net income and continued investment in growth and shareholder returns
Magna International ( <a data-ticker=\\\"MGA\\\" href=\\\"https://www.tipranks.com/stocks/mga\\\">(MGA)</a> ) has released its Q1 earnings
Magna International ( <a data-ticker="TSE:MG" href="https://www.tipranks.com/stocks/tse:mg">(TSE:MG)</a> ) has issued an update
According to Spark, TipRanks&#8217; <a data-autolink="true" href="https://www.tipranks.com/compare-stocks/artificial-intelligence">AI</a> Analyst
Magna International&#8217;s overall stock score of 72 reflects solid financial performance and attractive valuation
Strong cash flow and a robust dividend yield are key strengths
technical analysis indicates bearish momentum
and the earnings call points to potential headwinds in 2025
The company&#8217;s strategic initiatives for margin expansion and operational efficiency are positive
but macroeconomic factors remain a concern
To see Spark&#8217;s full report on TSE:MG stock, <a href='https://www.tipranks.com/stocks/tse:mg/ai-stock-analysis' target= '_blank'; rel='nofollow'>click here</a>
providing a wide range of products and services including vehicle engineering
The company focuses on producing components for light vehicles and is involved in initiatives related to electrification and active safety
See more insights into MG stock on <a href='https://www.tipranks.com/stocks/tse:mg/stock-analysis' target= '_blank'; rel='nofollow'>TipRanks’ Stock Analysis page</a>
Magna International ( <a data-ticker=\\\"TSE:MG\\\" href=\\\"https://www.tipranks.com/stocks/tse:mg\\\">(TSE:MG)</a> ) has issued an update
According to Spark, TipRanks&#8217; <a data-autolink=\\\"true\\\" href=\\\"https://www.tipranks.com/compare-stocks/artificial-intelligence\\\">AI</a> Analyst
Magna International Inc. (<a href="https://www.marketbeat.com/stocks/NYSE/MGA/">NYSE:MGA</a> - <a style="font-weight:normal;text-decoration:italic;color:green" href="https://www.marketbeat.com/arnreports/ReportTickerOptin.aspx?RegistrationCode=TickerHyperlink&Prefix=NYSE&Symbol=MGA">Get Free Report</a>) TSE: MG's share price traded down 3.3% on Friday following a dissappointing earnings announcement
The company traded as low as $33.43 and last traded at $33.86
631,440 shares traded hands during mid-day trading
a decline of 64% from the average session volume of 1,774,472 shares
The company reported $0.78 earnings per share (EPS) for the quarter
missing analysts' consensus estimates of $0.90 by ($0.12)
Magna International had a return on equity of 12.78% and a net margin of 2.36%
The company had revenue of $9.68 billion during the quarter
compared to the consensus estimate of $9.66 billion
During the same period in the previous year
the company earned $1.08 earnings per share
Magna International's quarterly revenue was down 8.2% on a year-over-year basis
The company also recently disclosed a quarterly dividend
May 16th will be given a dividend of $0.485 per share
This represents a $1.94 annualized dividend and a yield of 5.83%
The ex-dividend date of this dividend is Friday
Magna International's dividend payout ratio  is currently 48.50%
MGA has been the subject of several research reports
Raymond James decreased their price target on shares of Magna International from $53.00 to $50.00 and set a "market perform" rating for the company in a research note on Tuesday
BMO Capital Markets dropped their price target on Magna International from $47.00 to $41.00 and set an "outperform" rating on the stock in a research report on Monday
CIBC upped their price target on Magna International from $33.00 to $38.00 and gave the stock a "neutral" rating in a research note on Monday
Barclays lowered their price objective on Magna International from $47.00 to $37.00 and set an "equal weight" rating for the company in a research note on Tuesday
Bank of America downgraded Magna International from a "buy" rating to a "neutral" rating and reduced their price target for the company from $52.00 to $48.00 in a report on Tuesday
One investment analyst  has rated the stock with a sell rating
fifteen have given a hold rating and five have assigned  a buy rating to the company
Magna International  has a consensus rating of "Hold" and a consensus price target of $43.06
<a href="https://www.marketbeat.com/arnreports/ReportTickerOptin.aspx?RegistrationCode=TickerHyperlink&Prefix=NYSE&Symbol=MGA" rel="nofollow">Read Our Latest Stock Analysis on Magna International</a>
A number of institutional investors have recently bought and sold shares of the company
lifted its position in shares of  Magna International by 37.2% during the 4th quarter
now owns 1,111 shares of the company's stock valued at $46,000 after buying an additional 301 shares in the last quarter
 MassMutual Private Wealth & Trust FSB boosted its position in shares of  Magna International by 88.5% in the fourth quarter
MassMutual Private Wealth & Trust FSB now owns 2,113 shares of the company's stock worth $88,000 after purchasing an additional 992 shares during the period
 SG Americas Securities LLC boosted its position in shares of  Magna International by 29.3% in the fourth quarter
SG Americas Securities LLC now owns 48,643 shares of the company's stock worth $2,033,000 after purchasing an additional 11,015 shares during the period
 Avior Wealth Management LLC raised its position in shares of  Magna International by 2,400.0% during the 4th quarter
Avior Wealth Management LLC now owns 625 shares of the company's stock valued at $26,000 after purchasing an additional 600 shares during the period
DGS Capital Management LLC lifted its stake in shares of  Magna International by 111.0% during the 4th quarter
DGS Capital Management LLC now owns 21,048 shares of the company's stock valued at $880,000 after buying an additional 11,072 shares in the last quarter
Institutional investors own  67.49% of the company's stock
The company has a debt-to-equity ratio of 0.35
a quick ratio of 0.77 and a current ratio of 1.08
The company has a market cap of $9.37 billion
The firm's fifty day moving average is $34.59 and its two-hundred day moving average is $39.27
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Magna International Inc. (NYSE:<a href="https://www.insidermonkey.com/insider-trading/company/magna+international+inc/749098/">MGA</a>) Q1 2025 Earnings Call Transcript May 2
and welcome to the Magna International First Quarter 2025 Results Webcast
All lines have been placed on mute to prevent any background noise
there will be a question-and-answer session
I would now like to hand the call over to Louis Tonelli
and welcome to our conference call covering our first quarter 2025 results
Joining me today are Swamy Kotagiri and Pat McCann
our Board of Directors met and approved our financial results for the first quarter of &#x2018;25 and our updated outlook
We issued a press release this morning outlining our results
the slide presentation to go along with the call
and our updated quarterly financial review
all in the Investor Relations section of our website at magna.com
discussion today may contain forward-looking information or forward-looking statements within the meaning of applicable securities legislation
which may cause the Company&#x2019;s actual or future results and performance to be materially different from those expressed or implied in these statements
Please refer to today&#x2019;s press release for a complete description of our Safe Harbor disclaimer
Please also refer to the reminder slide included in our presentation that relates to our commentary today
I want to express our deep sadness here at Magna with the passing of our former CFO
Vince&#x2019;s contributions to Magna over his 30-plus-year career were invaluable
including playing a crucial role in shaping our financial strategies
Many of you listening in today benefited from his knowledge
we also celebrate his life and the profound influence he had on Magna
There are some notable takeaways from the quarter that I would like to highlight before getting into some of the details
 We are pleased that our Q1 results came in ahead of our quarterly planning cadence
mainly reflecting strong incremental margin on higher sales
I mentioned that the first-half of 2025 would be weaker than the second-half
We returned $187 million to shareholders in the first quarter in the form of dividends and share repurchases
Despite increased uncertainty due to the current tariff environment
which includes higher sales largely due to foreign currency translation partially offset by slightly lower vehicle production in North America
mainly due to the higher euro and decremental margins related to the North American volume reduction
 We continue to work closely with our customers to mitigate the tariff impacts and adjust in this rapidly evolving environment
And we have clearly communicated to our customers our intention to pass on any unmitigated incremental tariff costs
We continue to win new business and advance automotive technologies
We are collaborating with NVIDIA for next-generation
scalable active safety and autonomous driving systems as well as other applications
We have been awarded a new complete ADAS system with a North American-based global OEM
dual motor e-Drive with advanced off-road technology for Mercedes-Benz
Our customers and the industry continue to recognize Magna for excellence in launch and innovation
 We recently won GM&#x2019;s Supplier of the Year and Overdrive award
And Automotive News recently selected our AI-based thermal sensing technology as a 2025 PACEpilot Innovation to Watch
the industry is facing a high degree of uncertainty as a result of the tariffs and trade environment
Let me frame tariffs in the context of Magna
our North American business was about $20 billion
we imported roughly $2 billion of goods from countries
which would result in roughly $500 million in gross tariff costs
75% to 80% of our parts crossing the border are already USMCA-compliant
which puts our 2025 annualized direct tariff impact estimate at about $250 million
 We continue to evaluate options that will further increase USMCA compliance to mitigate tariff impacts
We will continue to evaluate the full scope of these opportunities
we are highly focused on working with customers to consider further mitigation opportunities
utilizing government remission programs where appropriate
continuing cost reduction programs already in place
and remaining disciplined with capital spend
we expect 100% of unmitigated incremental direct tariff costs to be recovered from customers
Uncertainty in the current business environment caused by tariffs and other trade measures has made forecasting more challenging than normal
 Our outlook reflects our strong first quarter performance and near-term OEM production release information
Our production assumptions do not contemplate the potential impacts of tariffs
we have reduced North American production by about 100,000 units to 15 million
and have raised our China production assumptions by roughly our Q1 outperformance to 30.2 million units
We also assume exchange rates in our outlook will approximate recent rates
We now expect a higher euro and Canadian dollar for 2025 relative to our previous outlook
 The increase in our sales range is predominantly associated with foreign exchange translation due to the higher euro relative to the U.S
partially offset by lower vehicle production in North America
particularly with respect to certain programs with high Magna content
The lowering our EBIT margin range reflects the margin-dilutive impact of euro-US dollar translation as well as decremental margin on the lower sales associated with the volume reductions in North America
We increased our tax rate to approximately 26% from approximately 25%
We expect capital spending to be in the $1.7 billion to $1.8 billion range
down slightly from $1.8 billion previously
reflecting our continuing efforts to defer or reduce capital wherever possible
and free cash flow ranges are all unchanged from our last outlook
we are providing some helpful financial modeling guidance with respect to Magna
Our average content per vehicle in North America is approximately $1,300
And we would estimate incremental and decremental margins in North America to be in the 15% to 20% range at the Magna level under normal conditions
We have also seen relatively volatile foreign exchange rate swings over the past few months
keep in mind that a $0.01 change in the euro-USD rate has about a $110 million impact on annual sales
dollar is about $50 million in annual sales with a margin at about our corporate average
we are proactively evaluating costs and capital
I would like to reiterate that our guiding principles remain the cornerstone of Magna
a long-term ownership mentality that starts with our culture of accountability and alignment interests at all levels of the Company; managing our portfolio under a consistent set of criteria
and dispassionately assess our product lines in terms of their markets
Maintaining a strong balance sheet to have the financial flexibility to manage through the cyclicality of our industry; and a capital allocation strategy that entails a long-term balance of investing for profitable growth
together with returning capital to shareholders
Regardless of where we are in the cycle or challenges we are facing
these overarching principles govern the way we manage Magna for long-term success
Recall that we indicated on our February call that we expected our 2025 earnings to be lowest in the first quarter of the year
comparing the first quarter of 2025 to the first quarter of 2024
compared to a 3% decline in global light vehicle production
primarily due to decremental margins on lower sales
And free cash flow used in the quarter was $313 million
ahead of our expectations and compared to $270 million in the first quarter of 2024
 Let me take you through some of the details
North American and European light vehicle production decreased 5% and 8%
netting to a 3% decrease in global production
light vehicle production declined 5% from the prior year
compared to $11 billion in the first quarter of 2024
our sales decreased 6% year-over-year for a negative 1% growth over market in the quarter
reflecting negative production mix from lower D3 production in North America
a decline in complete vehicle assembly volumes
including the end of production of the Jaguar E and I-Pace in Graz
the end of production of certain other programs
the divestiture of a controlling interest in our metal forming operations in India
the impact of changes in foreign exchange rates
and normal course customer price givebacks
 These were partially offset by the launch of new programs
and customer price increases to recover certain higher production input costs
Adjusted EBIT was $354 million and adjusted EBIT margin was 3.5%
The lower EBIT percent in the quarter reflects positive 60 basis points from operational items
reflecting operational excellence activities
partially offset by higher new facility costs
Negative 15 basis points related to lower equity income
as a result of lower net favorable commercial items
all with respect to certain equity accounted investments
negative 10 basis points for tariff costs paid out but not yet recovered from customers and volume and other items
which impacted us by negative 150 basis points
reflecting reduced earnings on lower sales and lower net transactional FX gains
higher net favorable commercial items was completely offset by higher net warranty costs and higher restructuring costs not called out as unusual
Interest was essentially in line with last year
Our adjusted effective income tax rate came in at 25.7%
primarily due to higher losses not benefited in Europe
unfavorable foreign exchange adjustments for U.S
partially offset by favorable changes in our reserves for uncertain tax positions
Net income was $219 million compared to $311 million in Q1 2024
partially offset by lower income tax and lower minority interest
partially offset by fewer diluted shares outstanding
 The fewer shares outstanding largely reflects share repurchases in the fourth quarter of 2024 and the first quarter of 2025
Turning to a review of our cash flows and investment activities
we generated $547 million in cash from operations before changes in working capital and used $470 million in working capital
Investment activities in the quarter included $268 million for fixed assets and a $148 million increase in investments
we used free cash flow of $313 million in Q1
better than we were forecasting and compared to $270 million in the first quarter of 2024
And we continue to return capital to shareholders
paid $136 million in dividends along with $51 million in share repurchases during the first quarter of 2025
 Our balance sheet continues to be strong with investment-grade ratings from the major credit agencies
we had just under $4.6 billion in liquidity
our adjusted debt-to-adjusted EBITDA ratio is at 1.92x
better than we had anticipated coming into the quarter
we had solid financial performance in the quarter
We returned $187 million to shareholders in the quarter in the form of dividends and share repurchases
largely due to foreign currency translation
partially offset by lower volumes in North America and a modest reduction in margin
mainly due to the higher euro and decremental margins related to North American volume reduction
 And we are working closely with our customers to mitigate tariff impacts and adjust in the rapidly evolving environment
Operator: We will now begin the question-and-answer session
[Operator Instructions] And your first question comes from the line of John Murphy with Bank of America
I think we all learned a lot from him and he was a great friend
so that&#x2019;s rough way to start the call
maybe kind of thinking sort of mid to long-term
it just seems like even adjusting for tariffs
as you think about that business mid to long-term
if there&#x2019;s something you need to do on a micro basis organically
Because there&#x2019;s a lot of other folks out there that are kind of tripping over that business as well
And it seems like it should be an okay business
but it seems like you just can&#x2019;t get it to turn the corner
the one-time which is behind us was a $30 million magnitude warranty topic that&#x2019;s included in the quarter right now
continuing to look at what we had last year and what we had in the past
Given the volatility and the program that we talked about in South Carolina
the macro variables that we talked about in Seating as a business hasn&#x2019;t changed
the execution plans that we have been talking about stay on track
that&#x2019;s always a part of the process
they put out a sort of a notice that seems to be an indication that USMCA-compliant parts are going to remain on tariff beyond sort of the 90-day review
and it seems like that may be in perpetuity
I&#x2019;m just curious what you are hearing there and if that&#x2019;s a correct interpretation
because that would create some pretty extreme relief for you guys here
that&#x2019;s &#x2014; I read that report and you are absolutely right
we are about &#x2014; that&#x2019;s where the focus has been
We are about between 75% to 80% USMCA-compliant
Lot of discussions on how to take that percentage up
that gives a lot more certainty and relief in our planning process
And that is the assumption that we are going with and hope to get some more clarity and certainty on that decision
John Murphy: And maybe just to follow on that
as far as schedule changes and program launch changes
what have you heard from automakers so far
It seems like everybody is kind of trying to plow ahead without making significant changes yet
Have you seen big changes in short-term schedules or potential program launches for the second half of this year or maybe even into next year
April seem pretty aligned with our planning
May from a visibility perspective also looks normal
but we&#x2019;ve always have been thinking about depending on any announcements that might change pretty quickly
we don&#x2019;t stop just by looking at the data here
we have been in conversations with OEMs at least two or three times a week at my level
even to get a understanding and not depend only on the releases
we have not seen any changes in terms of planning or in terms of production schedules
at least from the programs that we are involved with
A lot of discussions on how to get more USMCA compliance for sure
but that&#x2019;s where the chips fall today
China seems like it&#x2019;s showing some relative strength and absolute strength relative to expectations
Can you just remind us of your footprint or your mix of customers there
domestic Chinese OEMs versus international
it happens to be &#x2014; we were in China about just three weeks ago
About $5.5 billion of our revenue is from China
we started in China predominantly with all the Western OEMs
and we&#x2019;ve been able to move that mix from 10% to 65%-plus or in that range today
we grew at 15% in China compared to the roughly 5% that China market is growing
but we continue to gain or improve our mix there
I thought just about a year-ago that was 50-50
We continue to make good progress and have traction
Operator: And your next question comes from the line of Tamy Chen with BMO Capital Markets
am I to interpret that is essentially the COGS exposure from you importing into your US plants
you believe you would get 100% recovery from your customers
the $250 million we are talking about where we are the importer of that record tax
our first initiative is to mitigate that as much as possible with all our internal actions
continuing to work with our customers to increase the U.S
Some of it might need design modifications or validations or the production part approval process
and we are working with them and we&#x2019;ll continue to do so
anything that is remaining past all those efforts
our intent is to pass it on to the customer
with respect to the increasing USMCA compliance
increasing USMCA compliance with your customers
after we&#x2019;ve got a little bit of relief and clarity earlier this week
do you also believe your customers may be thinking more about increasing U.S
How does that impact you if both of those things continue from here
it&#x2019;s only fair to say that all scenarios have &#x2014; are being considered
But from what we&#x2019;re hearing even in my discussions
Given the capital allocation and the magnitude of what&#x2019;s being discussed
I haven&#x2019;t heard in all the discussions that I&#x2019;m having with all the customers that anybody is looking at a knee-jerk reaction
and they&#x2019;ve been very collaborative and sharing data with us
there is not capacity available at any point of time
but is there a possibility of rebalancing some of the things
We have to work with our customers to make those changes
So that&#x2019;s how we are proceeding to mitigate any impacts that are there
And my last question is on your share buyback
I think you said earlier that a month or so ago
Is that still on pause given the macro uncertainty
Is it also related to the &#x2014; where your leverage currently is at
and we have always talked about it as a strategy
it is paused given the uncertainty that we have in the market
we had the NCIB about to purchase 28.5 million shares
If uncertainty goes away and there is a lot of clarity
there is always the possibility to look at it later in the year
given where the market is and given where uncertainty is
and we continue to make good progress as discussed
And I think we are just a little bit ahead compared to where we are planning
Operator: And your next question comes from the line of Dan Levy with Barclays
I wanted to first just ask on Advanced Program Launch activity
Has there been any change in the activity behavior of automakers on this front
and what&#x2019;s the tone and tenor of commercial discussions with the automakers right now
From an overall planning launch perspective
there is a lot of scenarios being discussed and thought through
And I think we are fortunate in a way to say that most of our major customers have had discussions with us
but I think there is deliberation on the footprint and the cadence of the decision-making
But we are not really seeing a change in what we are going after in terms of business and how it&#x2019;s being sourced
And then as far as the complete vehicle segment
if you could just give any color on the outperformance in the quarter
but also how should we assess the risk for complete vehicle
given G-Wagon is a central program and there&#x2019;s some questions on the demand in the tariff environment as those are all exported
I think part of the outperformance has been based on how our complete vehicle assembly segment has the terms
So there is commercial recoveries as volumes go &#x2014; change because of how the terms are there
we&#x2019;ve been talking about restructuring and getting the cost structure of that facility to the current volume scenarios and the programs that we have had
We talked about some of the programs ending and some coming to an end in the 2026 &#x2014; towards the end of &#x2019;26
So we have proactively taken steps to restructure the cost base
but you&#x2019;ve seen the public statement of holding the price
 But if there is a demand reduction for that vehicle in North America
but you&#x2019;ve got to keep in mind the margin profile of that business is substantially lower than the normal Magna average
Patrick McCann: The only other thing I&#x2019;d add
Swamy Kotagiri: And we continue to have discussions
with different OEMs for getting on additional programs
the pieces of the business that are not USMCA-compliant
those are which products or in which segments
We haven&#x2019;t seen any significant point to make on one specific segment
But there&#x2019;s not a marked difference from one to the other
Operator: And your next question comes from the line of Doug Dutton with Evercore ISI
Just looking at the Body and Exterior segment here
I understand there&#x2019;s some FX volume effect there
is this likely to be a first half or first quarter phenomenon
or is this something that could persist with the uncertainty that we&#x2019;re seeing
How do you see those margins progressing throughout the course of &#x2019;25
but I think your thesis broadly speaking is correct
So we&#x2019;re operating where we expect it to operate in the BES group
We&#x2019;re seeing that increase as we progress through the year
and it would be consistent with what we had seen last year
we&#x2019;re still in a situation where a lot of our commercial rates tend to be recovered in the back half of the year
That&#x2019;s probably going to be amplified this year
So I think we&#x2019;re still expecting a strong margin performance in Q4 compared to the first three quarters of the year
this segment BES is really doing well and continues to perform at the level that we &#x2014; when I say &#x2014; no difference in the operations from where we had last year versus now
except volume and other things I just talked about
that&#x2019;s a good segue to my next question here
you mentioned those tariff costs that have been paid and not recovered from customers as a headwind
Is this going to be the norm going forward where those tariff costs are treated similarly to your cost recoveries from your customers
it&#x2019;s Magna fronting any incremental cost
and then you will be reimbursed in the future
Is that the correct way to think about this incremental tariff cost
It&#x2019;s not really the commercial side of it
until you have a legal agreement with your customer to recover it
The costs in the quarter were about $10 million gross for perspective
we&#x2019;re pushing it close as quickly as we can
but that is &#x2014; expect that same cadence as all the commercial
Operator: And your next question comes from the line of Joe Spak with UBS
I just want to understand some of the math here
The $2 billion of goods that cross the border
I get 25% of &#x2014; that&#x2019;s the $500 million
Then you&#x2019;re saying 25% of the parts are non-USMCA compliant
So how do you get to a $250 million impact
So you really mean only half the dollars are exempt
I know you&#x2019;re not assuming the &#x2014; any volume impact
are you assuming in the revenue guidance that you recover that $250 million &#x2014; I&#x2019;m sorry
there is also remission programs from governments
So that would offset some of the things that are there
And net of that remission is how you get to the $250 million approximate number that you&#x2019;re seeing
And we are not including the volume impact
Swamy Kotagiri: The remissions would help further
I guess what I&#x2019;m saying is just very simple math
$500 million across &#x2014; the remissions are included
I would have thought the impact would have been $125 million before remissions
but forget &#x2014; don&#x2019;t forget that it&#x2019;s not all 25% across the board
We are importing parts from China and other parts of the world that have a higher tariff than 25%
Joe Spak: I know the volume impact from tariffs is not included
three quarters of that $250 included in the revenue outlook
Patrick McCann: We&#x2019;ve assumed in our outlook that at the EBIT level
Any residual is going to be recovered from the customer
but then you assume &#x2014; but in reality
Patrick McCann: I can&#x2019;t &#x2014; it&#x2019;s going to depend
on how we structure those agreements with the customer
It&#x2019;s going to be more complicated than we can answer just yet
And then I guess just on the &#x2014; when you look at some of the margin revisions by segment
Swamy just said the tariff impact is mostly or across sort of all segments
So is that really just a result of some of the softer 1Q results
when you look at the revenue changes from our outlook in February to our current outlook
we&#x2019;re seeing roughly about a $1.5 billion increase just related to foreign exchange
and that&#x2019;s spread out quite evenly across our four segments
When you look at the pure volume declines as just manufacturing activity
and we&#x2019;re seeing weakness in Seating
and the Seating is primarily related to announced shutdowns in April and May already
Operator: And your next question comes from the line of Adam Jones with Morgan Stanley
I wanted to offer my condolences for the loss of Vince
and gentle soul who left the world a better place than he found it
And I think if he were here &#x2014; if he were listening to this call
keep your head down and get through the challenges and the opportunities of the day
And I think he would have great confidence in the team
And I just wanted to offer my condolences to the Magnus family and his own family and children as well
Patrick McCann: I&#x2019;ll pass it on to Joanne and the family
Operator: And your next question comes from the line of James Picariello with BNP Paribas
you mentioned in your prepared remarks that the 1Q exceeded internal expectations and the 2025 EBIT range is unchanged
do you still expect the first half to represent about 40% of the full year
This would imply something modestly above $500 million for the second quarter
the timing of recoveries could swing the answer
but if you were to get full recovery in the second quarter
which I don&#x2019;t think it &#x2014; I don&#x2019;t &#x2014; I imagine it&#x2019;s pretty reasonable given that the parts rebate mechanism is now in place for OEMs and given Magna&#x2019;s critical role as a supplier to your customers
Just how are you thinking about that 40-60 split
60% in the second half is still a good assumption
I think it was mentioned at a &#x2014; Magna mentioned at a recent conference that typically for the &#x2014; when you get the authorization for a buyback
you want to &#x2014; Company would typically want to buyback at least half of the authorization
That was something again mentioned at a conference
Just wondering if volumes overall for the industry hang in
or most recoveries for the tariff exposure that you have
at least half of this authorization gets done this year
Swamy Kotagiri: I don&#x2019;t know about the comment about the half
we always looked at it as a tool to give excess liquidity back to our investors and shareholders
how do you maintain liquidity and have the balance sheet and look at possible programs
and opportunities even that come up in a normal course
like additional volume and programs from other places that customers might reach out to us
especially in terms of uncertainty like this
Beyond that &#x2014; and that&#x2019;s the reason why we said we have paused
We have to see if everything returns back to normalcy
We would still go back to the NCIB authorization that we have
and we have to assess our surplus at that point of time
given we are still tracking the way we wanted to for our leverage ratio
or our intent when we start is to say we want to get as close as to the NCIB as possible
Operator: And your next question comes from the line of Shreyas Patil with Wolfe Research
and my condolences to Vince and his family
Wanted to maybe just come back to the guidance for this year
you have revised it for the latest FX assumptions
that alone would be maybe a $650 million benefit to revenue for this year
can you maybe just expand on the offset that you mentioned
I think there were some headwinds on key programs that you noted
what we have taken is as dollar stands with respect to euro and Canadian dollar today
I don&#x2019;t know the exact number for how much of that is in Europe
Patrick McCann: I think we&#x2019;d have to break it down
Then the offsets are primarily where we&#x2019;re seeing some volume
our volumes in North America are down just over 100,000 units and that&#x2019;s primarily impacting our BES segment and our Seating segment
Swamy Kotagiri: And we have taken what we have seen in terms of closures to date
So just &#x2014; so basically revenue is up $1.5 billion on FX
and then it&#x2019;s offset by lower volume
Patrick McCann: That&#x2019;s 95% of the answer
And then just maybe if you could help us just understand mechanically the process by which you would get recovery from the OEM
Because I understand your expectation is to get 100%
I guess what we&#x2019;ve seen in the past I think about the semiconductor shortage from &#x2019;21 and &#x2019;22 is
Would you expect this time around if you&#x2019;re looking at tariff costs to incur a lag through negotiation
that the pace at which you could get recoveries is much quicker
Shreyas even during the semiconductor crisis
some of it was directly with the customers
and keep in mind that we recovered pretty much 95%-plus
So we have a process is what I&#x2019;m trying to say
and we will set-up a process again similar to what we have
so would there be a little bit of back-and-forth in terms of timing
and I have to say that customers have been open to discussion and collaborative as we are discussing
Operator: And your next question comes from the line of Mark Delaney with Goldman Sachs
Thank you very much for taking my questions
And please allow me to pass my sympathies on to Magna and Vince&#x2019;s family on his passing
He was very detail-oriented and always quite generous with his time
Mark Delaney: I did want to speak a bit on schedules and understand your comments that customer production schedules have been stable
When you speak to your broader set of customers on their plans
can you help us better understand what they&#x2019;re indicating they&#x2019;ll do with vehicles being exported and now seeing tariffs
And help us understand why there wouldn&#x2019;t be a change to those exported vehicles
what&#x2019;s the confidence you have in production schedules tracking in line with your prior view for 2H
it&#x2019;s a little bit of a crystal ball
we are talking about releases that are in the system and it also depends on what programs and platforms we are on
So our comments are very much dependent on that
compared to the normal course of going up and down a little bit
What you&#x2019;re talking about is a little bit macro
800,000 units that are imported from Europe into North America
would that have an impact on those 800,000 units
but difficult to quantify what that would be depending on &#x2014; will the customers look at keeping the market share
 I would not know how to quantify that yet
But our answers are purely based on the data that we are seeing and based on the conversations we are having with our customers on the programs that we are active
The company have been expecting to achieve 75 bps of EBIT margin tailwind over the next two years in total
I&#x2019;m hoping to better understand if there&#x2019;s been any change in the magnitude of savings or the timing of which it may flow through given the current industry backdrop
We talked about roughly 35 basis points in 2025 and similar in 2026
We had visibility for the continuous improvement and other activities
I can tell you the entire organization is focused on all those actions
plus anything else that we have to mitigate
the organization is looking at the cost structure to be viable and good at the current levels
we are talking flex up to be able to take advantage and get our incrementals to be better
That&#x2019;s the mindset in the entire organization
So we feel pretty good into the given set of volumes
If the volumes continue as they are and slowly come back over time and the uncertainty comes down
we feel pretty good about what we&#x2019;re doing now in terms of traction as well as through 2026
Operator: And your next question comes from the line of Jonathan Goldman with Scotiabank
We see light vehicle inventories come down in the past two months in North America
and maybe that&#x2019;s related to the pull forward in demand
But in your production outlook for North America
does that assume any rebuild of inventories at all this year
Swamy Kotagiri: We kind of keep an eye on the inventories
What I would say is where we ended up in December
What we see today kind of goes back to what December was
But our planning for our production is based on releases
not on where the inventory is or the assumption
whether it&#x2019;s going to fill up or not
So I would say what we are telling you is based on releases in the system
Operator: And your final question comes from the line of Michael Glen with Raymond James
thank you for the answer with regard to the European export for assembled vehicles
but could you provide some context to Magna&#x2019;s exposure to Mexico &#x2014; Mexican and Canadian assembled vehicles
What the outlook is there and maybe what customers are communicating to you in terms of what might happen with those production schedules and any movement we might see
I&#x2019;ll try to get it and Pat can add color
looking across the North America ecosystem
we are not seeing a change in the platform or the mix at this point in time
we are taking Canada and Mexico and our content in all these platforms crossing borders
whether it&#x2019;s we supply in from Canada into Canada vehicles
I don&#x2019;t know if I can give more color than that at this point of time or I have more than that to give you
I just don&#x2019;t have it handy of OEM production in Canada and Mexico that shift into the U.S
we have sales of just over $4 billion in Canada
and about 25% of that is sold into the U.S
Your question of what the OEMs are building in those two countries shifted [indiscernible] would have to get back to you
Michael Glen: And not to put you on the spot with this question or anything like that
But like when you &#x2014; do you believe that the 25% on assembled vehicles from Canada or Mexico into the U.S
Swamy Kotagiri: You are putting us on a spot
and I don&#x2019;t have the answer for you
And just some of the reshoring efforts that you might look for to pursue to increase USMCA compliant &#x2014; how do you think about the Tier 2
Like I&#x2019;m just trying to assess your opportunity to reshore some of those components
if you go back to the COVID and the semiconductor crisis
there was a little bit of reshoring or rebalancing
this is no different from that perspective
Does it mean you can take everything in reshore in the short period of time
but I&#x2019;m just one voice in the industry
our goal is to figure how to increase the USMCA compliance first
And then we have to follow how the OEMs are thinking and how they are going to optimize or manage their footprint because based on logistics and other things
we have to kind of work collaboratively and cannot make that decision unilaterally
Patrick McCann: Swamy&#x2019;s point is very
very important because there&#x2019;s a business case that the customer has to agree to behind each of these reshoring opportunities
So that &#x2014; it&#x2019;s a granular bottoms-up case-by-case analysis that the customer has to sign up for with commercial terms
Operator: That concludes our question-and-answer session
I will now hand it back over to Swamy Kotagiri for closing remarks
We all talked about the high degree of uncertainty in the industry that we are all facing
Free cash flow is primary focus and getting back within our target leverage ratio
So we remain highly confident in Magna&#x2019;s future
Operator: That concludes today&#x2019;s call
<a href="https://www.insidermonkey.com/blog/tag/q1-2025/" rel="tag">Q1 2025</a><a href="https://www.insidermonkey.com/blog/tag/nysemga/" rel="tag">NYSE:MGA</a><a href="https://www.insidermonkey.com/blog/tag/msn-news/" rel="tag">MSN News</a><a href="https://www.insidermonkey.com/blog/tag/earnings-call-transcript/" rel="tag">Earnings Call Transcript</a>
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2025  (GLOBE NEWSWIRE) -- For over 65 years
Magna has been at the forefront of automotive innovation
the company will exhibit at Auto Shanghai 2025
presenting essential vehicle technologies and high-performance parts and systems that are poised to drive the next generation of automotive advancements
Magna’s strategic roadmap for the future of mobility will be on display at booth 2BC011 in hall 2.2
where the company will also host a press conference at 09:30 on April 24th (Beijing time)
“Magna is committed to driving the future of mobility with advanced systems and components that enhance consumer experiences,” said Sharath Reddy
we will showcase industry-leading innovations that demonstrate our commitment to helping domestic and global automakers thrive in the region and beyond.”
Magna’s exhibit will focus on four key areas: Sustainable Innovations
Personalized Brand Experiences and Complete Vehicle Solutions
Attendees will see the company’s comprehensive powertrain technologies
integrated cabin monitoring systems and more
Magna boasts nearly 70 manufacturing facilities and employs over 30,000 people in China
with approximately 60% of these sales coming from domestic OEMs
For updates and news from Auto Shanghai 2025, please visit <a href="https://www.globenewswire.com/Tracker?data=yE_PKdPj2Bl8cu5jvhA-IxIlx-cQPv4SutEPxGNRVma1JSJ5RjiQxJ9tyKxVNx2SWrOQeReVf8IRDw63E694Wjg298xuU7QUpEwvl7ef-0sXy3v_52brF25Cd5QISqG4" rel="nofollow" target="_blank" title="">magna.com/autoshanghai2025</a> or follow the company on social media
Investor Relations louis.tonelli@magna.com │ 905.726.7035
ABOUT MAGNA INTERNATIONALMagna is more than one of the world’s largest suppliers in the automotive space
For further information about Magna (NYSE:MGA; TSX:MG)
please visit www.magna.com or follow us on social
THIS RELEASE MAY CONTAIN STATEMENTS WHICH CONSTITUTE “FORWARD-LOOKING STATEMENTS” UNDER APPLICABLE SECURITIES LEGISLATION AND ARE SUBJECT TO
THE CAUTIONARY DISCLAIMERS THAT ARE SET OUT IN MAGNA’S REGULATORY FILINGS
PLEASE REFER TO MAGNA’S MOST CURRENT MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL POSITION
AS REPLACED OR UPDATED BY ANY OF MAGNA’S SUBSEQUENT REGULATORY FILINGS
THESE DOCUMENTS ARE AVAILABLE FOR REVIEW ON MAGNA’S WEBSITE AT WWW.MAGNA.COM
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Magna released its spring update to its U.S
and the results focus on what the market looks like during an uncertain time
<a href="https://www.adweek.com/convergent-tv/magna-ad-forecast-political-olympics/" target="_blank" rel="noreferrer noopener">Magna found that U.S. ad sales</a> reached $380 billion in 2024
as fourth-quarter earnings were strong across the board
This reflects a more than 12.4% increase (+9.9% excluding cyclical spending)
which already expected a down year in 2025
“Confidence plays a crucial role in marketing and advertising investment decisions
The current—hopefully temporary—dip in confidence has already dampened the dynamics of the ad market
to revise our growth forecast for 2025,” Vincent Létang
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Saleah Blancaflor is a TV reporter at ADWEEK
Adweek is the leading source of news and insight serving the brand marketing ecosystem
Magna International (MG) has experienced an 18% decline in its share price over the last three months
raising questions among investors about future prospects
the company aligns with industry standards
stagnant net income growth presents a challenge to investor confidence
bolstered by a reduction in the future payout ratio
Furthermore, the consensus recommendation from two brokerage firms currently rates MISTRAS Group Inc (<a href="/stock/MG/summary">MG</a>, <a target="_blank" title href="/stock/MG/financials" class="stock-link">Financial</a>) at 1.5
reflecting a &quot;Buy&quot; recommendation
This rating highlights the positive sentiment surrounding the stock despite recent challenges
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Utah (KUTV) — A 38-day-old infant died three days after being hospitalized with traumatic injuries believed to have been inflicted by his father
the child was found unresponsive at the family&#x27;s Magna home on the evening of March 14 by his father
who called 911 after realizing his son had stopped breathing
Officers responded to the residence just after 8 p.m.
where they found the child with a faint pulse but unresponsive and limp
the infant had been fussy earlier in the evening
The child was transported to Primary Children&#x27;s Hospital
where doctors discovered multiple signs of serious trauma
Police documents noted that these injuries were consistent with abusive head trauma
The infant was listed as critically ill and died at the hospital three days later
The investigation into the child’s death revealed that Valenzuela had been alone with him that evening while the infant’s mother had left the house around 7:50 p.m
She reportedly received a call from Valenzuela shortly after 8 p.m
Autopsy results confirmed the child’s injuries
unveiling severe subarachnoid hemorrhaging
often associated with traumatic brain injury
Doctors advised that these injuries are more commonly seen in cases of abuse rather than accidents
Valenzuela denied that he caused harm to his son but did not seem surprised when authorities informed him about the physical trauma confirmed in the autopsy
Officers noted that Valenzuela expressed concern over the doctors’ care and handling of his son
suggesting that medical staff contributed to his death
The child’s mother voiced concern about her son’s behavior
noting that he would often scream when alone with Armando
She indicated that his cries would become louder and more intense when Valenzuela was watching him
Valenzuela asked the officer transporting him to jail about “second chances,” questioning whether
the officer would believe he was “a good enough person to get a second chance.”
Valenzuela was booked into the Salt Lake County Metro Jail on felony charges of murder and intentional child abuse
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