Canadian auto parts manufacturing company Magna International reported on Thursday that its quarterly profit skyrocketed by more than 136%, as heavily increased vehicle demand led to a surge in the purchase of body structures, chassis, and powertrains. This quarterly profit increase sees Magna’s full-year revenue outlook experience its own steady rise.
While the COVID pandemic led to widespread lockdowns, those consumers who still required transportation began leaning heavily towards private vehicles as opposed to public transportation systems. With semiconductors being used extensively in cars, this new trend worked heavily in the Aurora-based mobility technology company’s favor.
Since the 136% quarterly profit increase, Magna’s projected revenue for the financial year hovers between $40.2 billion and $41.8 billion. This is a slight increase from the previous estimate of $40.0 billion to $41.6 billion.
From the beginning of the shift towards private modes of transport in the first quarter, Global light vehicle production was up 18%. Much of this increase was fueled by a rise in production in China, where light vehicle production skyrocketed by 89%.
At present, Magna International’s net income is approximately $615 million, which translates to $2.03 per share. This is a steep rise from the company’s previous year’s earnings in the same quarter, namely $261 million, or 86 cents per share.
