MAGNA
Big sales improvement in 2004 / Price pressure from OEMs / EBIT increases at slower rate
Tier 1 automotive supplier Magna International (Aurora, Ontario / Canada; www.magnaint.com), improved sales in 2004 to USD 20.7 bn, an increase of more than 35% against 2003. North America contributed 19% of this growth. In Europe, the strong euro led to sales gains of 68%. The net result was USD 692m, up 18% on 2003.
Intier (www.intier.com), after Magna Steyr the company´s second largest individual division, increased sales 17% to USD 5.5 in 2004 and EBIT by nearly 70% to USD 231m. This division, with a workforce of 24,100, covers the complete vehicle interior with a wide variety of plastic components. Intier´s five largest customers are DaimlerChrysler (24%), Ford (22%), General Motors (20%), BMW (10%) and Volkswagen (6%).
The company said it continues to face growing pressure from OEMs, who are calling for additional price reductions, despite constantly rising feedstock costs. Intier also points to a mounting trend to include development and tooling costs in the turnover risk by way of a higher unit price instead of the present procedure of invoicing them separately. All these factors, the company said, are increasing the pressure to shift production to low-wage regions like Mexico, China and eastern Europe.
Group company Decoma, a manufacturer of automotive exterior parts, lifted its 2004 sales 13% to USD 2.75 bn. However, EBIT slumped to a disappointing USD 79m (USD 161m), a development blamed on the Belplas unit in Belgium. The third Magna unit with a high plastics consumption, mirror system specialist Magna Donnelly, is no longer reported separately as it is a fully owned subsidiary.
As reported previously (see PIE 04, 2005), Magna aims to fully integrate all its outstanding activities, which, apart from Decoma and Intier, also include newly acquired Tesma. Following expected approval of this acquisition by an extraordinary general meeting to be held on 30 March, Intier is due to be taken over on April 3.
• e-Service:Detailed information on Magna International in Q4 and full year 2004 as PDF-Dokument (191 KB)Detailed information on Intier in Q4 and full year 2004 as PDF-Dokument (228 KB)
Intier (www.intier.com), after Magna Steyr the company´s second largest individual division, increased sales 17% to USD 5.5 in 2004 and EBIT by nearly 70% to USD 231m. This division, with a workforce of 24,100, covers the complete vehicle interior with a wide variety of plastic components. Intier´s five largest customers are DaimlerChrysler (24%), Ford (22%), General Motors (20%), BMW (10%) and Volkswagen (6%).
The company said it continues to face growing pressure from OEMs, who are calling for additional price reductions, despite constantly rising feedstock costs. Intier also points to a mounting trend to include development and tooling costs in the turnover risk by way of a higher unit price instead of the present procedure of invoicing them separately. All these factors, the company said, are increasing the pressure to shift production to low-wage regions like Mexico, China and eastern Europe.
Group company Decoma, a manufacturer of automotive exterior parts, lifted its 2004 sales 13% to USD 2.75 bn. However, EBIT slumped to a disappointing USD 79m (USD 161m), a development blamed on the Belplas unit in Belgium. The third Magna unit with a high plastics consumption, mirror system specialist Magna Donnelly, is no longer reported separately as it is a fully owned subsidiary.
As reported previously (see PIE 04, 2005), Magna aims to fully integrate all its outstanding activities, which, apart from Decoma and Intier, also include newly acquired Tesma. Following expected approval of this acquisition by an extraordinary general meeting to be held on 30 March, Intier is due to be taken over on April 3.
• e-Service:Detailed information on Magna International in Q4 and full year 2004 as PDF-Dokument (191 KB)Detailed information on Intier in Q4 and full year 2004 as PDF-Dokument (228 KB)
24.03.2005 Plasteurope.com [202347]
Published on 24.03.2005
German version of this article...