Q2 2024 Magna International Inc Earnings Call Transcript
Key Points
- Magna International Inc (MGA) reported Q2 sales of $11 billion, in line with expectations.
- Operational excellence activities are on track to contribute about 75 basis points to margin expansion during 2024 and 2025.
- The company has reduced its planned gross megatrend engineering spend for 2024 by another $40 million, bringing total reductions for the year to $90 million.
- Magna International Inc (MGA) has further lowered its expected CapEx range by another $100 million, totaling up to $200 million for 2024 compared to the February outlook.
- The company is maintaining its free cash flow outlook at $600 million to $800 million for 2024.
- Adjusted EBIT margin was down 30 basis points to 5.3% compared to the second quarter of 2023.
- Adjusted EPS came in at $1.35, down 12% year over year, reflecting lower EBIT and higher interest expense.
- Interest expense increased by $20 million due to higher short-term borrowings and higher market rates on new debt.
- Net income was $389 million, down from $441 million in Q2 of 2023.
- The company is seeing slower BEV adoption than previously anticipated, particularly in North America and Europe, leading to program delays or cancellations.
Good morning and welcome to the Magna International Inc. second-quarter 2024 results webcast call. (Operator Instructions) Thank you. I would now like to turn the call over to Louis Tonelli, Vice President, Investor Relations. Please go ahead.
Thanks, operator. Hello, everyone, and welcome to our conference call covering our second quarter 2024. Joining me today are Swamy Kotagiri and Pat McCann. Yesterday, our board of directors met and approved our financial results for the second quarter of 2024 and updated outlooks for â24 and â26. We issued a press release this morning outlining our results.
Youâll find the press release, todayâs conference call webcast, the slide presentation to go along with the call, and our updated quarterly financial review, all in the Investor Relations section of our website at magna.com.
Before we get started, just as a reminder, the discussion today may contain forward-looking information or forward-looking statements within the meaning
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