Canadian automotive supplier Magna International Inc. raised its earnings forecasts for 2018 as it reported first-quarter profits that increased from a year ago and exceeded analysts' expectations.
Net income attributable to the company rose to $660 million, or $1.83 per share, in the quarter that ended March 31, from $577 million, or $1.51 per share, in the prior-year period.
On an adjusted basis, Magna earned $1.84 per share, up from $1.53 per share a year earlier. The S&P Capital IQ normalized consensus EPS estimate for the quarter was $1.70, with 15 analysts reporting.
First-quarter adjusted EBIT climbed year over year to $875 million from $818 million.
Sales for the quarter came in at $10.79 billion, up from $8.90 billion last year, with the complete vehicles segment contributing about 60% of the sales increase. Sales at the division jumped to $1.66 billion from $527 million.
Magna recorded higher quarterly sales despite a 2% year-on-year decline in light vehicle production in North America and flat light vehicle output in Europe, the company said.
For 2018, Magna expects its net income to be between $2.4 billion and $2.6 billion, up from the previous guidance of $2.3 billion to $2.5 billion.
Total sales are projected to be between $40.9 billion and $43.1 billion, higher than the earlier forecast of $39.3 billion to $41.5 billion.