May 7, 2020 / 9:15 AM / a month ago

Magna profit halves on COVID-19 hit

(Reuters) - Canadian auto parts maker Magna International Inc (MG.TO) reported a 51% fall in quarterly adjusted profit on Thursday, hurt by a decline in global automobile production due to the coronavirus crisis.

Several auto parts makers including BorgWarner Inc (BWA.N) and Visteon Corp VC.N, which were already struggling due to weak automotive demand in a slowing global economy, have reported steep declines in quarterly sales as coronavirus-led lockdowns forced automakers to shut production.

Magna, which lost $1.1 billion in sales as a result of production curtailments by customers in the first quarter, said factories in North America, its biggest market, were expected to restart in stages over the next few weeks.

Plants of suppliers and customers in China have already resumed production, while facilities in Europe were beginning to return to normal operations, Magna said.

Magna makes parts such as body structures, chassis and powertrain for customers, including Ford Motor Co (F.N) and Volkswagen AG (VOWG_p.DE).

Adjusted net income attributable to Magna fell to $261 million, or 86 cents per share, in the first quarter ended March 31 from $531 million, or $1.63 per share, a year earlier.

Sales fell about 18% to $8.66 billion.

Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty and Anil D'Silva

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