Magna International’s Q2 earnings takes US$156-million hit due to war in Ukraine

TORONTO — Canadian auto supplier Magna International Inc. posted a loss in its most recent quarter as it recorded a non-cash impairment charge related to its investment in Russia.

The Ontario-based auto parts maker, which keeps its books in U.S. dollars, says it lost $156 million (all figures in USD) or 54 cents per diluted share in the second quarter, which includes $1.24 of non-cash impairment charges related to the company’s investment in Russia.

The results compared with earnings of $424 million or $1.40 per diluted share in the same quarter of 2021.

Adjusted net income fell to $243 million or 83 cents per share, compared with $426 million or $1.40 per share a year earlier.

Magna says sales for the three months ended June 30 were $9.36 billion, a 3.6 per cent increase from $9.03 billion last year.

The company says higher sales were mainly due to a two-per-cent increase in global light vehicle production, largely driven by a 14-per-cent increase in North America.

“Our second quarter results were largely in line with our expectations, excluding the impairment of our investment in Russia,” Magna CEO Swamy Kotagiri said in a statement Friday.

“While we anticipate ongoing industry disruption through at least the remainder of 2022, we expect light vehicle production and our earnings to increase in the second half of the year, compared to the first half.”

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