MAGNA INTERNATIONAL
Global presence in automotive components market / Worldwide turnover DEM 10bn / Expansion planned for South America
Quick decisions to buy and rapid growth – that's the recipe for success of Magna International Inc. (36 Apple Creek Blvd., Markham, Ontario L3R 4Y4, Canada). The latest example of Magna's expansion strategy is the acquisition of the plastics division (DEM 331m in turnover in 1996) of Ymos AG (HQ: D-63171 Obertshausen) by Magna Holding AG (A-2522 Oberwaltersdorf/Vienna), the European headquarters of the Canadian parent company (see Plasteurope.com 22, 1997).
Having evolved from a simple supplier to a global provider of modules and complete systems for the automobile industry, Magna is now universally recognized as a leader in North America's interior system and exterior component market. But its position in Europe is also becoming stronger with continual increases in production capacity, primarily brought about by acquisitions. No wonder experts predict Magna's European turnover to double to almost CAD 2.2bn (approx. DEM 3bn) by 1999.
The group, with its staff of more than 32,000 worldwide in 118 locations in North America, Mexico, Europe and China, increased its total turnover around 31%, to almost CAD 7.7bn (approx. DEM 10bn) in the 1996/7 fiscal year (31-7-97). This figure represents an operating result of CAD 660m (1995/96: 500) and net profits of CAD 603m (319). Analysts estimate that Magna will exceed CAD 10bn in turnover in the next two years. Although the large U.S. and German car manufacturers have been its most important customers to date, Magna intends to increase its influence in the South American market, primarily in Brazil and Argentina.
An increase in the company's seat components market share (currently 10%) is also planned. One big step toward this goal would be Magna's acquisition of Delphi Interior & Lighting from General Motors. If this deal goes through, which is still completely up in the air, Magna would occupy third place in this market, behind Johnson Controls and Lear.
An interesting sidelight: After 1990's financial crisis, brought about by the automobile industry crash, Frank Stronach, Magna's founder and CEO, gives a lot of credence to the motto "Keep away from banks". Since then, the automotive supplier with an eye for acquisitions has relied almost exclusively on the stock market for its financing.
READER SERVICE: Detailed press release on Magna's 1996/7 fiscal year: PIE-No. 41694.
Having evolved from a simple supplier to a global provider of modules and complete systems for the automobile industry, Magna is now universally recognized as a leader in North America's interior system and exterior component market. But its position in Europe is also becoming stronger with continual increases in production capacity, primarily brought about by acquisitions. No wonder experts predict Magna's European turnover to double to almost CAD 2.2bn (approx. DEM 3bn) by 1999.
The group, with its staff of more than 32,000 worldwide in 118 locations in North America, Mexico, Europe and China, increased its total turnover around 31%, to almost CAD 7.7bn (approx. DEM 10bn) in the 1996/7 fiscal year (31-7-97). This figure represents an operating result of CAD 660m (1995/96: 500) and net profits of CAD 603m (319). Analysts estimate that Magna will exceed CAD 10bn in turnover in the next two years. Although the large U.S. and German car manufacturers have been its most important customers to date, Magna intends to increase its influence in the South American market, primarily in Brazil and Argentina.
An increase in the company's seat components market share (currently 10%) is also planned. One big step toward this goal would be Magna's acquisition of Delphi Interior & Lighting from General Motors. If this deal goes through, which is still completely up in the air, Magna would occupy third place in this market, behind Johnson Controls and Lear.
An interesting sidelight: After 1990's financial crisis, brought about by the automobile industry crash, Frank Stronach, Magna's founder and CEO, gives a lot of credence to the motto "Keep away from banks". Since then, the automotive supplier with an eye for acquisitions has relied almost exclusively on the stock market for its financing.
READER SERVICE: Detailed press release on Magna's 1996/7 fiscal year: PIE-No. 41694.
15.01.1998 Plasteurope.com [18915]
Published on 15.01.1998