By Adriano Marchese

Magna International raised its full-year sales expectations on stronger vehicle production out of Asia, but said the new forecast doesn't account for growing trade tensions that could disrupt demand global supply chains.

Shares traded 1.4% lower on the NYSE in premarket trading at $34.51

The Canadian auto parts maker said early Friday that it now expects 2025 sales between $40 billion and $41.6 billion from previous forecasts of $38.6 billion to $40.2 billion. The new guidance is still short of last year's $42.84 billion, but ahead of the $39.23 billion analysts expect, according to FactSet.

The guidance boost comes on the back of higher light vehicle production out of Asia which is expected to ramp up to about 30.2 million units, from 29.7 million. In Europe, output is expected steady at 16.6 million units, but to dip slightly in North America to around 15 million.

Magna cautioned that its new guidance doesn't factor for possible tariffs and other trade measures on vehicle costs, affordability or demand, nor how they might affect vehicle production in the future.

Since President Trump took power, the auto industry has faced heightened scrutiny, with integrated U.S.-Canada-Mexico supply chains and related sectors like steel caught in the crossfire of protectionist policies.

Adjusted earnings before interest and taxes margin was downgraded to a range of 5.1% to 5.6% from 5.3% to 5.8%, it said, while equity income, which includes EBIT, is now expected to be between $65 million and $95 million, a $5 million increase on either end of the range.

In the first quarter, sales contracted by 8% to $10.1 billion, as global light vehicle production decreased 3%. Analysts expected a steeper decline to $9.65 billion.

Net income rose to $146 million, or 52 cents a share, from $9 million, or 3 cents a share in the prior year period.

Chief Executive Swamy Kotagiri said Magna's operating results for the period exceeded its expectations thanks to strong incremental margins on better than anticipated vehicle production.

"For the balance of the year, we remain confident in our ability to execute on variables within our control in a complex and uncertain industry environment," Kotagiri said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

Magna International raised its full-year 2025 sales expectations on stronger vehicle production out of Asia. "Magna Raises FY24 Sales Forecasts on Asia Strength, But Trade Risks Loom," at 7:25 a.m. ET, incorrectly stated in the headline that the sales forecast was for the full-year 2024.

(END) Dow Jones Newswires

May 02, 2025 07:32 ET (11:32 GMT)

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