Magna more than doubles Q1 net income, improves 2021 forecast
Quarterly net income surged 136% to $615 million, revenue jumps 18% to $10.2 billion
Greg Layson
First-quarter net income at diversified supplier Magna International Inc. surged 136 percent as the company increased its 2021 financial outlook, even as the global microchip shortage roils the global auto industry.
Net income on the quarter surged to $615 million, compared with $261 million in the first quarter of 2020, which was impacted by global manufacturing shutdowns due to the COVID-19 pandemic. Revenue rose 18 percent to $10.2 billion, up from $8.7 billion in 2020, Magna said in a statement Thursday.
Magna, whose North American headquarters is in Troy, raised its 2021 net income outlook to between $2.2 billion and $2.4 billion, up slightly from a previous estimate of $2.1 billion to $2.3 billion. It raised its sales outlook to between $40.2 billion and $41.8 billion, up about $200 million from its previous outlook.
Keeping up with an auto industry that is rapidly changing requires a comprehensive product portfolio, partnerships, alliances and agility, says Swamy Kotagiri, who took over at Magna CEO earlier this year.
Science-based approach aligns with objectives of Paris Climate Accord
Company signs-on as founding sponsor of XPrize Abundant Energy Alliance
AURORA, Ontario, April 22, 2021 (GLOBE NEWSWIRE) Magna enters a new era in the company’s sustainability journey with its announcement to achieve carbon neutrality in its operations by 2025 in Europe and by 2030 globally.
“While sustainability has long been ingrained in Magna’s culture, this decade will be our most decisive yet as we accelerate our efforts to protect the planet for future generations,” said Magna CEO Swamy Kotagiri. “We believe achieving carbon neutrality is both a social responsibility and a business imperative in the fight against climate change. This ambitious – and achievable – goal is rooted in a science-based approach that aligns with the Paris Climate Accord and places us among industry leaders in Europe and North America.”
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DETROIT Electrification is accelerating, but it will happen over time, said Swamy Kotagiri, CEO of Magna International. It s not a switch on, switch off type scenario, Kotagiri said during an
Automotive News Congress Conversations webcast April 29. The key lies in how do you develop a strategy that is modular and scalable? We always looked at it as a marathon, have the sustenance to stay in the race rather than try to address it as a sprint.
Kotagiri took the helm of the Canadian supply giant in January. He offered some advice for industry incumbents and new entrants as they navigate various industry trends, especially the shift toward EVs.
Magna commits to carbon neutrality in global operations by 2030
The auto parts maker has also signed on a as a founding sponsor of XPrize Abundant Energy Alliance. May 2, 2021 Canadian Plastics
Automotive parts maker Magna International has pledged to achieve carbon neutrality in its operations by 2025 in Europe and by 2030 globally.
“While sustainability has long been ingrained in Magna’s culture, this decade will be our most decisive yet as we accelerate our efforts to protect the planet for future generations,” said Swamy Kotagiri, CEO of the Aurora, Ont.-based company. “We believe achieving carbon neutrality is both a social responsibility and a business imperative in the fight against climate change. This ambitious – and achievable – goal is rooted in a science-based approach that aligns with the Paris Climate Accord and places us among industry leaders in Europe and North America.”