The Wall Street Journal-20080117-Magna International Inc-- Sales Expected to Slip Amid Industry Woes
Return to: The_Wall_Street_Journal-20080117
Magna International Inc.: Sales Expected to Slip Amid Industry Woes
Canadian auto-parts maker Magna International Inc. expects 2008 sales to be slightly below last year's. The Aurora, Ontario, company said it expects sales in 2008 to be $24.9 billion to $26.2 billion, based on North American light-vehicle production of 14.4 million units and European production of 15.6 million units. According to its November forecast, the company expects to report 2007 sales of $25 billion to $26.3 billion. The high end of the 2008 projection was slightly below the mean forecast by analysts surveyed by Thomson Financial for $26.34 billion. Magna said it is positioned to weather "challenging times" in the auto industry. It said more than 20% of its manufacturing plants are in low-cost regions, such as Mexico and Asia outside Japan, and that number could rise to as high as 30% by 2010. Analysts considered the company's outlook for vehicle production conservative.
