Magna International Inc raises dividend, but earnings hit by strong American dollar

AURORA, Ont. – Magna International Inc. (TSX:MG) says the strong American dollar had a significant negative impact on its fourth-quarter revenue, which is reported in U.S. currency.

The Canadian autoparts giant based in Aurora, Ont., says its sales during the last three months of 2015 were $8.6 billion, down three percent from $8.8 billion last year.

It says that included a $770-million hit in the weaker Canadian dollar and also the euro from the U.S. dollar.

Related

Linamar stock rout doesn’t reflect auto-industry reality, CEO saysBelinda Stronach’s latest makeover sees her drinking in the elixir of youth with new ‘ingestible beauty products’How Magna International Inc is looking to startups for the following popular trend within the auto industry

Sales revenue would have been up six percent in the fourth quarter of 2014 with no currency fluctuation.

Magna’s net gain from continuing operations was also down year-over-year, visiting 6.4 per cent to $483 million from $516 million. Earnings per share dropped to $1.19 from $1.23.

Its leader, Don Walker, says Magna’s results were strong apart from the impact of currency fluctuation and its board of directors increased the quarterly dividend, which rises by 14 per cent to 25 cents per share with the March payment.