Business
Magna forecasts suggests growth
Magna forecasts suggests growth
About this update from Thomson Reuters Corporation
[{"type":"text","content":"\nMagna forecasts suggests growth\n\n\n Jan. 13, 2010 (Baystreet.ca) -- Magna International Inc. forecasts its sales will be in a range of $19.5 billion U.S. to $20.5 billion U.S. this year.The outlook provided Wednesday by the Aurora, Ont.-based auto parts maker is in line with the $20.3 billion U.S. average of 12 analyst estimates compiled by Thomson Reuters.It's also more than their estimates for Magna's 2009 revenues, which are expected to come in at roughly $17 billion U.S. The company will reveal its revenues for the fourth quarter and full-year 2009 results in February.The company's 2010 guidance assumes 10.3 million units produced in North America and 11.4 million units in Europe, underlining how the company's focus has shifted overseas.Magna is recovering from a disastrous year in which two of the three main North American automakers, General Motors and Chrysler, survived only with the help of billions of dollars of taxpayer bailout money.Magna's outlook also assumes no significant acquisitions or divestitures. In late 2009, a plan for Magna to acquire control of automaker Opel fell through.Magna had been expected to use Opel to support its ambitions to expand in Russia, which the company expects has higher growth potential than its traditional markets in Canada, the United States and Western Europe.Magna's forecast also estimates that average dollar content per vehicle will be between $895 U.S. and $925 U.S. in North America and between $545 U.S. and $570 U.S. in Europe. The company also expects full year 2010 spending for fixed assets will be in the range of $750 million U.S. to $800 million U.S.\n\n\n\n","length":1891,"tagName":"div"}]