Shares of Magna International saw a significant boost in early trading on Friday following the release of their impressive third-quarter financial results. The company's strong performance can be attributed to the global increase in light vehicle production.
At 9:43 a.m. ET, shares of Magna International were trading 10% higher in Toronto at 74.14 Canadian dollars ($53.97).
Magna International, a prominent Canadian auto-parts manufacturer, reported a net income of $394 million for the quarter, equivalent to $1.37 per share. This represents an improvement from the previous year's figures of $289 million ($1 per share).
When excluding one-off items and costs, adjusted earnings amounted to $1.46 per share. Industry analysts had anticipated earnings of $1.31 per share, according to FactSet.
The company's sales also displayed robust growth, amounting to $10.69 billion, surpassing analyst expectations of $10.28 billion. This marked an increase from the previous year's sales figure of $9.27 billion.
Magna International greatly benefited from the overall rise in global light vehicle production. Notably, the production of light vehicles increased by 4% globally. Particularly significant growth was observed in North America, with a 7% rise, and Europe, with a 14% increase. However, production in China experienced a decline of 2%.
It is clear that Magna International has demonstrated remarkable financial performance in the third quarter due to the surge in global light vehicle production.