Magna 3Q net income triples on big one-time gain
Canadian auto parts maker Magna International Inc. said Thursday that its third-quarter net income more than tripled, boosted by a hefty one-time gain related to its stake in an electric car parts business.
For the quarter ended Sept. 30, Magna earned $390 million, or $1.66 per share, up from $102 million, or 42 cents per share, a year ago.
The recent quarter's results included a gain of 53 cents per share related to the company's acquisition of the controlling 27 percent interest in Magna E-Car Systems Partnership, while the year-ago period included 52 cents per share in one-time charges.
Excluding the gain, Magna's adjusted profit was $1.13 per share in the recent quarter.
Revenue rose 6 percent to $7.41 billion.
Analysts, on average, expected a profit of $1.02 per share on $7.02 billion in revenue, according to FactSet.
The company now expects 2012 sales between $30.3 billion and $31.2 billion, up from a previous prediction of $29 billion to $30.5 billion and ahead of analysts' estimates of $28.74 billion.
Magna, based in Aurora, Ontario, also said Thursday that Frank Stronach, the company's founder and honorary chairman, will step down from its board, effective immediately.
Stronach, 80, said he gave up the board seat because he's involved in politics in his native Austria and does not want his political views to be confused with his role on the board.
Magna's shares fell 31 cents to $44.40 in afternoon trading.