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Overall group gains  Magna increased its sales in Graz, but reduced production numbers

Overall group gains Magna increased its sales in Graz, but reduced production numbers

Automotive supplier group Magna achieved more sales and profits in the current fiscal year 2023. Magna announced on Friday that revenue rose 13 percent to $42.8 billion (39.8 billion euros) compared to the previous year. Higher margins through productivity and efficiency improvements as well as cost savings increased adjusted operating income (EBIT) from $1.7 to $2.2 billion. Net profit doubled from $592 million to $1.2 billion.

In the last quarter of 2023, the group achieved sales of $10.5 billion, which equates to a nine percent increase year-on-year. Adjusted earnings before taxes (EBIT) rose from $367 to $1 million. Net income rose to $271 million in the fourth quarter from $95 million in the same period last year.

For 2024, Magna Group expects sales of $43.8 to $45.5 billion and an EBIT margin of 5.4 to 6.0 percent. In 2026, the margin — ranging from $48.8 to $51.2 billion in sales revenue — should range from 7.0 to 7.7 percent, according to the group's projections.

Sales increased in Graz, but profits were halved

In the “complete vehicles” segment of Magna Steyr in Graz, the company achieved sales of more than $5.5 billion in 2023, after about $5.2 billion the previous year. However, adjusted operating income (EBIT) halved to $124 million, after $235 million in 2022. The Graz site is the company's largest site and the only site where complete vehicles are produced.

In the fourth quarter of 2023, the segment achieved sales of $1.2 billion (2022: $1.3 billion and EBIT of $43 million, after $57 million in the same period of the previous year. The decline in sales was due to other reasons cited. , until the end of production of the BMW 5 Series. Specifically, 21,400 vehicles were manufactured in Graz in the last three months of the previous year – in the corresponding period of 2022 there are still 28,600 vehicles.

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The outlook is very positive: This sector is expected to generate sales of $5.6 to $5.9 billion this year; The forecast for 2026 is higher, with a range of $6.1 to $6.5 billion.