Magna International Inc. posted higher second-quarter net income from a year ago, but trimmed its 2018 guidance due in part to newly imposed tariffs.
Net income attributable to the company rose to $626 million, or $1.77 per share, in the three months to June, compared with $548 million, or $1.44 per share, in the year-ago period.
Adjusted EPS came in at $1.67 compared with $1.45 last year. The S&P Global Market Intelligence consensus normalized EPS estimate for the second quarter was $1.74.
Second-quarter consolidated sales reached $10.28 billion, up 12% year over year from $9.14 billion. Excluding the impact of foreign currency translation and net divestitures, sales increased 9%.
Adjusted EBIT rose to $803 million from $758 million, resulting in an adjusted EBIT as a percentage of sales of 7.8% in the second quarter compared with 8.3% a year ago.
The Canadian automotive supplier declared a quarterly dividend of 33 cents per outstanding common share, payable on Sept. 14 to shareholders of record on Aug. 31.
For the six months to June, net income rose to $1.29 billion from $1.13 billion a year ago, while sales increased to $21.07 billion from $18.04 billion.
For 2018, Magna projects adjusted net income of $2.3 billion to $2.5 billion, down from the prior guidance of $2.4 billion to $2.6 billion. Total sales are projected to range from $40.3 billion to $42.5 billion compared with an earlier estimate of $40.9 billion to $43.1 billion.
The company attributed the trimmed outlook to the U.S. dollar appreciation, reduced equity income from joint ventures in its transmission business and the estimated impact of tariffs.
Magna also cut its equity income outlook for 2020 to between $330 million and $380 million, compared with a range of between $400 million and $450 million previously.